In the food sector alone, thousands of new products are launched every year. Some items are taken into the range, while others are de-listed. Category management helps to efficiently pool and manage this large volume of products. As a result unmanageable and patchy product ranges are a thing of the past. Optimizing product ranges with category management equally benefits retailers, manufacturers and consumers.

Customer focus is the central point in category management. Category managers focus on the demands of customers and their purchasing behavior. This is to make shopping more attractive, more fun and less time-consuming. Under these ideal circumstances customers are only too happy to shop in the store and will stay loyal. If a customer is planning a wellness weekend at home, he/she has to laboriously pick and choose the right items. Hair conditioner, body peeling and care lotions are spread over a confusing area. Categories which fit together from a customer point of view are pooled and clearly displayed in all stores of a distribution line. This means that customers can find their way around a Real store in Düsseldorf just the same as in Hamburg.

Satisfied customers always come back. This boosts the trading company’s customer base, hikes revenues and increases market share. Great customer proximity and unique category profiles enable a trading company to clearly set itself apart from competitors. The software CMplus supports category managers and saves time and money. Thanks to digital evaluation, responsible employees can concentrate on more important tasks such as promotion planning and implementing measures on site. Trading companies and manufacturers also have a common data base, which cuts the error ratio.

Manufacturers can also boost earnings as a consequence of optimized product ranges and satisfied customers. In some cases, supplier have to recommend de-listing one of their own products in their capacity as a category partner. If this makes the entire category more attractive for customers, category revenues increase – to the benefit of both partners. An example from the distribution line Real highlights this point. The store has consolidated a mustard range significantly with the help of the category management team. Consolidation paid-off for everybody. The shelf is more clearly organized and customers can find what they are looking for more quickly. In the end this measure led to an increase in revenues in the following year, which almost reached the double digit region. Another great advantage of category management is that it promotes trust between all involved parties, which creates a valuable pre-condition for successful cooperation.