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Category management is a technique used by retailers where the product assortment is sub-divided into categories that 1) reflect the purchasing behaviour of the target consumers and 2) are managed as separate business units. In category management, retailers aim to improve the overall performance of a group of products, rather than focus on individual items. In other words, it is a change in perspective about the competitive dynamics of products in the assortment. Individual categories have a manager with the responsibility for making both the buying and merchandising decisions for the category and for planning and achieving the sales and profit goals. (A color version of this case is available at a higher price.)

The key account manager at Pioneer Products, sat before her computer pondering the challenge that faced her. She had been asked by the category manager at King's Food Store (KFS) to work with him on a review of the table syrup category. She knew that the performance of the table syrup category, and indeed, the various brands and items within the category, had caused some concern at KFS recently. The table syrup category was a small one for King's Food Store and they really needed the expertise and resources available from the syrup manufacturers to improve the performance of the category. She knew that the category review was the first step in developing a category management program with KFS. She was excited about the opportunity to partner with KFS but she knew that she had a lot of work to do to review and understand the category before making her initial presentation. As she prepared for her task, she wondered what market and product performance information to review and what recommendations she would make to KFS. A follow-up case (9A95A007) is available.

The key account manager at Pioneer Products, was elated. She had just presented the category manager at King's Food Stores (KFS), with her observations and preliminary recommendations based on her review of the table syrup category (see King's Food Stores (A), 9A95A006). He was delighted with her new insights into the category and was now considering the formation of a strategic alliance with Pioneer Products to manage the table syrup business. He had just provided her with additional valuable, confidential information about consumer behaviour, pricing, and promotions. Her challenge now was to develop further her recommendations for KFS.

Category management is a technique used by retailers where the product assortment is sub-divided into categories that 1) reflect the purchasing behaviour of the target consumers and 2) are managed as separate business units. In category management, retailers aim to improve the overall performance of a group of products, rather than focus on individual items. In other words, it is a change in perspective about the competitive dynamics of products in the assortment. Individual categories have a manager with the responsibility for making both the buying and merchandising decisions for the category and for planning and achieving the sales and profit goals. (A color version of this case is available at a higher price.)