How to implement best category management practices to improve retail business profit (1)
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The document discusses category management as a method for organizing products to enhance customer experience and boost retail profitability. It outlines the planogram process, which includes measuring store layouts and optimizing shelf space based on sales data. Best practices for implementing effective category management include analyzing consumer behavior, strategic product placement, and clustering stores by attributes.
How to implement best category management practices to improve retail business profit (1)
- 2. What is Category Management? It is an assortment of items, that help customers find appropriate substitutes for each other. Products are categorized based on similarities in consumer preferences, target audience, seasonal or occasional and convenience categories.
- 3. Why Planogram is Helpful for Better Category Management Decisions? Planogram is termed as a category management tool, that identifies products for the target segment and helps understand how the shopper encounters those products on the store shelves.
- 4. What are the Planogram Category Management Process? The first step is to understand the store by measuring and making layout drawings of the stores. It helps to improve retail store profitability. To create planograms, the retailer should analyze the dimensions of all products that need to be placed on store shelves. The last step is optimizing the space between shelves and displaying products based on sales data.This helps to analyze sales, adjust and extend product categories and assortment.
- 5. Planogram BestCategory Management Practices to Boost Retail Sales Accurate data on consumer demographics and behavior Consider clustering Understand the retail store layout Strategic placement of complementary products
- 6. Accurate data on consumer demographics and behavior & Consider clustering By analyzing the customer data, stores can determine tactics that will entice customers to the store. For instance, introducing new products, categories, discounts or even changes in the store layout. Retailers can create clusters by grouping stores based on similar attributes such as region, customer, and store size.
- 7. Understand the retail store layout & Strategic placement of complementary products Helps to analyze how the store should be merchandised in a way that can promote a category to increase sales of all departments. Placement of complementary products ensures logical continuity within the aisle.This helps increases the chance of impulse purchase by shoppers.
- 8. Use Nexgen POG to implement best category management practices to drive retail sales. www.nexgenus.com sales@nexgenus.com