Category Managemant

Category Management in the discount grocery sector

Executive summary

It can be difficult to imagine how discount grocery retailers beneficially can adapt the Category Management concept into their own business model.

The purpose of this assignment is to investigate and discuss what effect Category Management has on grocery discount retailers and how Category Management can be applied by a discount grocery retailer such as ALDI.

By using the ECR concept in the supply chain, it becomes easier to set the costumer in focus and to respond to the consumers demand. Category Management is categorising the products in a specific way so that there will be the highest possible sale based on the consumer buying behaviour.

The discount retailers can usefully adapt Category Management in their business if they want to make sure that some specific products always shall be available in the store. Category Management could also be implemented if the discount retailer wants to have a wider product assortment to ensure that their consumers want go and shop the substitute products in another store.

Contents

Category Management in the discount grocery sector 1

Executive summary 2

Introduction 4

Efficient Consumer Response and Category Management 4

The effect of Category Management in the grocery retail sector 6

“Category management has little relevance to discount grocery retailer” 6

The challenges of Category Management in the discount grocery retail 6

Category management and the global crisis. 7

Category Management applied in the discount grocery retailers. 8

Conclusion 10

References 11

Table of figures:

Figure 1 – Average Worldwide Consumer Responses by Category…………………………………………………..8

Introduction

To implement Category Management (CM) in the discount grocery retail sector could seem as if it had a little relevance due to the small amount of Stock Keeping Units (SKU’s) and the very narrow product categories which characterize the...