What CatMan can do for you

Your article on category management (MW February 1), whilst getting to some of the facts, missed a crucial point. The whole reason for developing a category management approach is to place the consumer at the heart of the decision-making process. By understanding their needs and developing strategies and tactics to meet those needs you will win in business.

Category management has come a long way in the past few years: more consumer focus and research goes into retailers’ decisions; effective strategies have been developed; the eight-step planning process that has been used has proved to be robust; information is shared and joint retailer and supplier initiatives take place.

All of the above, however, is incidental to the fact that it is more profitable to work this way. The ultimate reason for changing the way you work is to get better business results and that is what those companies which choose this way of working have achieved. ECR Europe case studies have shown increases of five to 35 per cent in category turnover and five to 37 per cent in profit, as well as rises in other indicators.

To make category management work, you have to put your ideas into action quickly and efficiently. The effective and swift implementation of planning is one of the challenges for category management in the future. The winners will be companies which use category management as a way of working and a one-off project. This applies to large and small companies.

Category management as a buzz phrase may antagonise some people, but the principles and ethics behind it will never go away. The companies that win in the long term all have a clear understanding of consumer needs and how to meet them profitably. That is all category management ever aims to do, and if companies keep their focus on that principle they will win with category management (or whatever you choose to call it).

Chris Leach

Consultant

The Partnering Group