Identifying product categories
To identify product groups, it is necessary to look at the assortment from the buyer's point of view. The composition and structure of categories varies greatly depending on the products sold.
Stages of implementation of category management
Identification of product groups and categories
The categorization process should include the following tasks:
category names are defined;
category structures are created in accordance with the recipient's relational logic;
resources are allocated to create and maintain the category structure;
a list of products in turn leads into sales with overseas chinese in worldwide data the group is created.
What a category structure looks like depends on management factors (product orientation, product layout, product characteristics, terms of sale) and consumer logic (price niche, relational range, etc.).
Dividing product categories into subcategories and segments
These principles are used to create a hierarchy of categories down to the purchasing unit. The number of levels is determined by the breadth of the store's assortment. In theory, the depth of categorization is unlimited, but in practice, 1-3 hierarchies are sufficient for most stores.
Step 3: Analyze categories and determine their proportions
This step is necessary to accurately determine the investment of each category in the overall assortment of the outlet. To achieve this goal, certain activities are carried out:
sales analysis is performed within a trade category;
if we are talking about offline trade, then it is necessary to identify customer requests at a particular retail outlet;
the range of goods and services offered by competitors is analyzed;
The market share distribution among suppliers is investigated.
After this analysis, the initial breakdown of the product line into categories can be modified. The research process is routine and at least the last few months of sales should be considered.
Step 4: Setting up categories by roles
The role of a product indicates its position in the product range and is characterized by the following indicators:
level of demand;
price;
technical specifications assigned by the supplier;
popularity;
nature of demand.
Clarifying the role of product categories simplifies the distribution of working capital between them and allows you to develop purchasing and promotion plans for each item.