Category strategy where the retailer tries to encourage current customers to spend more by changing products in their baskets to bigger sizes and/or premium versions.
Published in Chapter:
Impact of Digitalization on Category Management
Arif Mohammed (JDA Software, USA) and Ricardo Cesar Panserini (JDA Software, Brazil)
Copyright: © 2019
|Pages: 23
DOI: 10.4018/978-1-5225-7700-3.ch009
Abstract
The discipline of category management has always played an important role within retailers as well as their CPG manufacturer suppliers. While the eight steps within the category management process (category definition, category role, category assessment, category scorecard, category strategies, category tactics, category implementation, and category review) have remained the same, with digitalization the discipline is undergoing a massive transformation, and the approach to the process is getting disrupted through the availability of huge volumes of transactional data, customer loyalty data; advancement in hardware technology through better scanners, image recognition devices, sensors and IoT devices and machine learning, and artificial intelligence. In this chapter, the authors take a closer look at the eight-step category management process, the traditional approach, the enabler for disruption, the new approach, and its benefits and what the future may hold.