Category Management for Supermarkets

Category Management

Category Management is the management of product categories as strategic business units, were assortment, pricing, inventory levels, shelf-space allocation, promotions and buying are all managed as a whole.

This intensive training course is all about implementing Category Management in your organization.

Workshop program

1. Development of Category Management

  • The pioneers: Coca-Cola, Procter & Gamble and Wal*Mart
  • The impact of Efficient Consumer Response
  • The impact of retailer concentration and globalization
  • Future development trends

2. Category Management from Retailer Perspective

  • Store format optimization
  • Assortment, pricing, presentation, logistics
  • Sales, gross margins, costs
  • Out-of-stocks, availability
  • Consumer happiness

3. Category Management from Manufacturer Perspective

  • Trade marketing versus retail marketing
  • Aligning category management and sales targets
  • Activation of different distribution channels
  • Eight trade marketing strategies to cope with category management

4. Win-Win Strategies for trading partners

  • Retailers improve retail marketing
  • Manufacturers improve trade marketing and brand value
  • Trading partners improve cooperation
  • International opportunities for manufacturers
  • How to handle confidential information

5. Successful Category Management Process

  • Definition: consumer segmentation and category structure
  • Role: cross category analysis and profitability evaluation
  • Assessment: identifying sales and profit opportunities
  • Balanced scorecard: performance targets
  • Strategies: assigning strategies to each category segment
  • Tactics: planning activities for results
  • Plan implementation: effective action
  • Review: measuring against benchmarks

6. Manufacturer Response to Specific Category Strategies

  • Traffic building
  • Point-of-Sale output
  • Category profitability
  • Cash generation
  • Creating excitement and customer triggers
  • Image enhancement

7. Importance of Effective Use of Data

  • Consumer behaviour (GfK household panel data, specific consumer research)
  • Market share and causal data (Nielsen data etc.)
  • Geographics
  • Retailer sales, margins, cost indicators, store locations, space management, promotions, introductions
  • Manufacturer turnover, margin indicators, promotional budgets, promotion results, introduction budgets and results

8. Effective Analytical and Planning Models (“enablers”)

  • Space management
  • Direct product profitability
  • Account profitability
  • Activity Based Costing
  • Pricing strategies, brandpricing, price elasticity

9. Management of Specific products

  • Impulse presentation of profit makers
  • Pricing strategy and presentation of private labels
  • Availability and shrinkage of theft sensitive products
  • The critical success factor of Wines
  • The cat-food mystery
  • Timing of fresh foods
  • Lean logistics of mega-losers
  • Packaging of slow-movers

10. Cutting-Edge Strategy for Category Management Projects

  • An effective and detailed approach
  • The role and commitments of each participating company
  • Team members and their work
  • Project planning
  • Avoiding and solving pitfalls
  • Internal and external communication

11. Case Study 1

  • A case of category management failure
  • What went wrong and the solution out

12. Case Study 2

  • Analysis of a successful category management case
  • Critical success factors

13. Retailer Buying Models and Manufacturer Response

  • Pure buying and negotiation
  • Merchandising and below the line focus
  • Format management and manufacturer investment in trade marketing
  • Decision making unit (DMU) and input of production and logistics
  • Integrated category management and retailer-manufacturer teams

14. Manufacturer Organization of Trade Marketing and Category Management

  • Four basic organization models of trade marketing
  • Tasks of category management, account management and brand management

15. Conclusion: Bring Everything to Action

  • Category management as part of the commercial organization
  • Day to day working between retailers and suppliers
  • How to share costs and benefits

The Category Management workshop is multi-company, single company or for two retailer/supplier partners. A full Category Management Workshop takes two days. It is possible to make a selection (“menu”) and organize a workshop of one day.


Please contact RetailEconomics for your Category Management workshop


drs Joost van der Laan
J.W. van der Laan Marketing & Logistics BV
Prins Clauslaan 3
3852 DA Ermelo, Netherlands
Tel.: 0031-6-53846927
Chamber of Commerce 320 56641, VAT number NL802737213B01