Definition
Category management is a retail and FMCG approach that treats each product category as its own business unit. Instead of deciding product by product, the whole category is managed to serve the shopper and deliver the best commercial result for retailer and supplier.
How it works
- 01 — Define the category
Decide which products the shopper sees as substitutes and where the category begins and ends.
- 02 — Set the category role
Is the category there to draw traffic, earn profit or defend against competitors? The role guides every other decision.
- 03 — Assess performance
Read sales, profitability and shopper data and compare it with the market.
- 04 — Targets and strategy
Set measurable targets and choose a strategy that fits the category role.
- 05 — Tactics
Decisions on assortment, pricing, promotions and space.
- 06 — Execute and review
Put the plan into stores, then measure results and adjust regularly.
Skills you will gain
- Reading sales and profitability data, and Excel
- Understanding shopper behaviour and category roles
- Supplier negotiation and Joint Business Planning (JBP)
- Pricing, promotions and space planning
Common questions
What is category management?
Category management is a retail approach that treats each product category as its own business unit and makes assortment, pricing, promotion and space decisions from sales and shopper data.
How is a category manager different from a buyer?
A buyer typically focuses on purchasing and negotiating prices and supply terms, while a category manager owns the wider picture: the category role, strategy and commercial results. In many companies the two roles overlap.
Do I need prior experience to learn category management?
Not to get started. Being comfortable with numbers and Excel helps, as does any background in retail, sales or procurement.
Where can I find a category management course in Arabic?
RCMA offers Retail Category Management Essentials: a live Arabic course of 13 sessions in category management covering assortment, pricing, promotions, procurement and supplier negotiation.
Want to learn it hands-on?
Retail Category Management Essentials is a live Arabic course with small cohorts and limited seats.
Category manager vs buyerCourse details