First and foremost, Category management is the process of managing a retail business with the objective of maximizing sales & profits of a category. Robinsons, a departmental store usually manage its merchandise at different category levels.
When it comes to toys, people get softened when they look into those cute cuddly toys or are amazed by how a toy functions, not so much because of its brand.
When Robinsons plans for its toys category, it usually makes decision as a whole for the entire category unlike other categories like bags and cosmetics where certain brands are on their own and have their own set of promotions and advertisements. When they are well categorized, customers are not easily confused and can relate well to the brands or designs they desire. Robinsons can show off their various promotion of different brands or categories, bringing up the potential for higher sales and so on.
Of course toys do have some of their established brands like Matell, Lego, and Hot Wheels etc. However majority of them are not as concerned as compared to buying cosmetics or accessories like bags, shoes etc. According to research, when someone shops for toys generally, they shop for its outer appearance, color combination, functionality, and the gender of the person they are buying for.
So next time you visit a toys section, look closely, they don’t pick up the bear from the shelf because its brand is glaring out of it but rather its physical appearance, quality and tangibility!
(Brands are not visible; focus is more on individual product)
Bed Linen Department
Take the Bed Linen department for example, the department/sales manager will overseas that all the products are broken down accordingly into discrete groups of similar or related products. All towels should place in one provided section, all pillows should be located at another section and the fitted sheets at specific areas. They are of course further divided into different types and quality etc.
This is actually a kind of strategy adopted by Robinsons. Not only are the products well categorized for the customers’ ease of looking, they have a tactic to track the sales and turnover of category such as a certain brand of pillow or a range of towel assortments.
For instance, the Tempur Pillow which is well known for their quality and the ability to shape well and align against the sleeper’s head and temperature, are tracked to revise its sales target and potential etc. They also have other products of the same tempur material as lumbar back support, seat cushion and creative pillow shapes, etc. This is because they take up a large space in the department. With that, the sales manager will focus the negotiations with the supplier or buyer on the turnover of its total category, not just the sales of the individual products. Suppliers are expected to suggest new product introductions or a new promotional activity if it will have a beneficial effect on the turnover or profit of the total category. This includes the prices, the cost of merchandises, human resources, etc. High sales and profits!! That’s what a departmental retailer would want right? On top of all, loyal customers of that brand can also benefit on that brand category!