“Companies are losing sales, hampering trading relationships and potentially failing to manage risk by not practicing category management strategically or with defined processes,” says Karen Bevan, head of consumer and category management, IGD.
She added that there is a growing gap between those implementing a full eight-step strategic approach (32%) and those using category management tactically, with informal processes and an emphasis on “quick wins” (30%).
Ways of learning about category management
• Formal training, internal – 34%
• Formal training, external – 8%
• Informal, learn on the job – 52%
• Other – 16%
Approach to category management
• Strategic (full 8 step process, cross functional collaboration, customised research & initiatives, strategic alignment) – 32%
• Innovative (shorter streamlined process, little customised research, selective investment, test new initiatives) – 32%
• Tactical (Informal process, tactical quick wins, ranging & merchandising, promotions etc) – 30%
• Transactional (sales focused approach only, minimise costs) – 4%
• Do not practice category management – 1%
• Don’t know – 1%
