Assignment On

Category Management of a Retail Store

Subject: Retail Buying and Category Management
Submitted By

Richa Shah

Under the Supervision / Guidance Of

Dr. Binaya Bhusan Jena

Submitted To

Department of Fashion Management Studies,

National Institute of Fashion Technology,
Ministry of Textiles, Government of India,
CIT Campus, No 136/ 137, Ramchandrapur, Jatni, Khurda, Bhubaneswar 752050 Ph: 0674-2492997, Fax: 0674-2490992
Website: www.nift.ac.in 2010

Category Management Category management is a retailing concept in which the range of products sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories (examples of grocery categories might be: tinned fish, washing detergent, toothpastes). It is a systematic, disciplined approach to managing a product category as a strategic business unit. Each category is run as a "mini business" (business unit) in its own right, with its own set of turnover and/or profitability targets and strategies. Introduction of Category Management in a business tends to alter the relationship between retailer and supplier: instead of the traditional adversarial relationship, the relationship moves to one of collaboration, with exchange of information, sharing of data and joint business building. The focus of all supplier negotiations is the effect on turnover of the category as whole, not just the sales of individual products. Suppliers are expected, indeed in many cases mandated, to only suggest new product introductions, a new planogram or promotional activity if it is expected to have a beneficial effect on the turnover or profit of the total category and be beneficial to the shoppers of that category. The concept originated in grocery (mass merchandising) retailing, and has since expanded to other retail sectors such as DIY, cash and carry, pharmacy, and book retailing.

Factors affecting the growth of Category Mangement 1) Changes in consumer: consumer needs, population growth rate and consumer spending power ihas changed. Consumers are more informed and discerning. 2) Intensified Competition: retailers have started thing about delivering convenience and variety to consumers thus reducing brand consciousness and better positioning of merchandise. Turnover of category is enhanced. 3) Advancement in technology: better technology like POS (point of Sales), and RFID (Radio Frequency Identification) has helped in betterment of category organization.

Retail Category Management Model

Category management aims at managing categories as strategic business units, producing enhanced business results by focusing on delivering value to customers. Category management process involves certain strategic and operational decisions.

Category Strategies According to the growth Share matrix there are four kind of categories in which a retail outlet can be distinguished. These are: 1) 2) 3) 4) Winners Morning Stars Sleepers Questionable

The category management 8-step process The industry standard model for category management is the 8-step process, or 8step cycle developed by the Partnering Group. The eight steps are shown in the diagram on the right; they are: 1. 2. 3. 4. 5. 6. 7. 8. Define the category (i.e. what products are included/excluded). Define the role of the category within the retailer. Assess the current performance. Set objectives and targets for the category. Devise an overall Strategy. Devise specific tactics. Implementation. The eighth step is one of review which takes us back to step 1.

Category Management of a Retail Store

Dhiraj Sons Mega Store Pvt. Ltd is a corporate group comprising of a business activity firms like mega store, super store, music shop, card shop, toy shop and fashion world. Dhiraj Sons is in business since last 62 years, starting off with doing small business in grocery and kirana shop in posh area of athwa lines, Surat. It was the first to start a family General Store in 1972, namely Athwa General Store. Subsequently following the overwhelming response from the people, for the first time in Gujarat, it ventured into a departmental store Dhiraj Sons in 1984. It became a pioneer in introducing for the first time in Gujarat the self service system and online computerized billing system. Continuing with the successful progress march, it also added a greeting card shop. a music shop, plastic corner and a stationery corner to its establishment in the year 1995, which was due to the faith and love of the people of surat in them and their management, which made them stand apart from the rest of their competitors. In 1999, they inaugurated Dhiraj Sons- the Mega Shop at Chowpatty, a 15000 sq. ft shopping store. A complete shop entertainment environment kind of store. Catering to demands of their valued customers, in 2002 they unveiled Dhiraj Sons for their shopping ease and comfort. From a small Grocery Store in 1984 to super store, Mega store and fashion world in 2002 shows the kind of progress they have made and always leading from the front. This all has been possible because of the trust and love from their valued Dhiraj Customers due to their fellow staff members. This was always promoted

them to take a major step forward in presenting their customers with new innovations and dimensions. Dhiraj Fashion World

Dhiraj Fashion World has been pioneer in introducing the concept of mega retail store in Surat called Dhiraj Fashion World for the entire family. It is a multi brand outlet. It is a grand fashion world for men, women, kids garment and accessories. The entire place is totally air conditioned with gorgeous automatic entrance. In an extremely price sensitive market like Surat, the Dhiraj Fashion World has been successful in maintaining the equilibrium between quality and price. Though Dhiraj Fashion world store, the company has brought to surat masses an ambiance conductive for shopping, and offers customer tremendous convenience to shop, in addition. The superstore also offers a varied range of brands, which encompass every aspect of modern dressing in Surat. With Dhiraj Fashion world, the company believes in providing assistance per excellence to its customers, despite the store being self service store. The company aims to deliver value to the customers through various unique avenues. Another highlight of the Dhiraj Fashion World service is NO question asked exchange policy, which allows customers to exchange products within 30 days of buying them, without giving any reason.

FLOOR GUIDE

MEN FASHION CATEGORY Formal:Louis Phillipe, Arrow, Allen Solly, Excalibur, Indigo Nation, Scullers, Bay Island, Parx, Provogue, Shape, Albastar, Recardo, Cottony Casuals:Mufti, Dockers, Colours, Athen, Mercy, M.Square, Status Quo, League, Hiedelbarg, Rugby, Crave, Crush, Kevin Ninan Denims: Lee, Levis, Wrangler, Lee Cooper, Spykar, Pepe, Liveln Party WearBlack Barry, Givo, Denis Parkar, Manish Creation, X-posed, Rod, Pranks, Cartel Sports Wear: Reebok, Beeve Accessories: Exciter, Parx, Park Avenue, Jockey, Chromozome, Bonjour, Celestial- Horse Watches: Timex, Titan, Espirit, Giordano, Citizen, Raymond Rence Footwear: Reebok, Nike, Lee Cooper, Rockport, New Balance, Hitz, Piccasso, Franco Leone Perfumes: Boss, Paco Rabane, Hugoboss, Gucci, D.Jel.Pozo

WOMEN FASHION CATEGORY Westerns : XTC, Oobe, Chimera, London Fashion Couture, Jealous, Scullers, Provogue, Fashion News, Anjanee, Mentor, Looks, Feel 'em on, Peach, Pause, Lee, Levis, Wrangler, Lee Cooper, Spykar, Pepe, Polo Denims: Lee, Levis, Wrangler, Lee Cooper, Spykar, Pepe Salwar Kameez: Satya Paul, Khema Agencies, Dress Line Watches: Timex, Titan, Espirit, Giordano, Bentex, Citizen, Raymond Raynee, Pierre Cardin Footwear: Reebok, Nike, Red Tape, Lee Cooper Cosmetics: Loreal, Lakme, Maybelline, Revlon, Shanaz Husain

KIDS / INFANTS FASHION CATEGORY Apparels: Origin, Danaboi, Twister, U-Tex, Gini & Jony, Zeal, Kid-Studio, Ruff, O' Kids, Leo & Barbie, Fragrance, Romano, My Kraft, Micky & Pooh, Infants Accessories: Body care

DHIRAJ GROUP

Dhiraj Groups has efficiently categorized its merchandise which helps in building customers and increases sales and Return on Assets. This categorization of merchandise has proved to be a boom for the company.