Category Management is one of the most successful business processes developed in the past century – used in one form or another by most manufacturers and retailers within the industry.
Defining the category is the first step in the category management process. In the brick & mortar channel, category definition is largely driven by where retailers place products within the store. For example, orange juice is in the refrigerated section, eggs are in dairy, cereal in center store, and waffles are in frozen. Category definitions have traditionally been created based on the physical limitations of the retail store environment.
The Category Management process is different online, where the physical limitations of the store are removed and shoppers have a different set of priorities. Category and Shopper strategies need to be customized for the eCommerce channel.
