Category management refers to the correct placement of merchandise to entice more customers. The assortment must be created according to the buyer’s needs. For example, a chocolate brand will list all the desired qualities in a bar of chocolate on its packaging to lure its audience in.


The rationale behind deploying category management is to augment sales and better the shopping experience. The sellers are proactive in conducting surveys and research to understand their customers better. They study factors like the daily footfall, money spent by customers every day, the products people most bought, and how often they spent this money to research category management.

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Category management induces a positive effect on the brand and increases sales. They also dwindle the management costs that may be required to keep shelves full. The shelves are now replaced with products that customers like and buy. As they say, “a satisfied customer is the best business strategy of all.” The situation works similarly online as well.


THE 4 Ps


The 4 P’s of category management are:


  • Product


For a business to be triumphant, it must make a correct product selection and placement. To come to the right decision, the sales representatives and the other departments conduct rampant research. It reveals notable aspects regarding customer expectations, thereby allowing companies to make prudent decisions.

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It is essential to realise that establishing a store is a significant expense. The sellers need to understand their audience; otherwise, their business may undergo losses. Sales reports and customer trends are key eye-openers in such settings.


Imagine walking into a store with arbitrary merchandise arrangements. It might be frustrating for you to track the desired product, further creating resistance from the customer to visit again.


  • Price


Product pricing is a crucial determinant of sales. There are many competitors in the market scenario. If one wishes to make their brand lucrative and sustain this competition, they must offer subsidised prices. It essentially helps people in deciding whether or not they want to bag a product.

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It should also facilitate maximum returns. The acceptability of pricing has to concur with both participants; the buyers and the sellers. If they impose low prices, the business might bear losses, and if the prices are lofty, the customers will not buy them.


  • Placement


While marketing can help engage people, the product placement will be the verdict of their final relationship with the brand. If the brand wishes to appeal to its customers, it increases efficiency and brand awareness. It augments the profits and increases brand awareness.


In a physical setting, products placed at an eye line have a better chance of making the cut than those that are not.  The famous saying “eye level is buying level” backs up this notion. Products placed on the lowermost shelves go unnoticed because the customer does not wish to take the pains of bending and browsing. Try to place the essentials on the back shelf and high-value items towards the front.

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  • Promotion


Brand promotions are vital to helping get the word around. Some of the leading brands in the industry, such as Coca-Cola, Bisleri, and even Parle G, have marketed themselves to reach a widespread audience. People have to recognize the brand to invest money and make repeated purchases.




These are the four Ps of category management.