Problems and benefits of implementation of category management at domestic enterprises

Categorical management has been gaining great popularity in the world since the 2000s. In the domestic market, categorical management began to gain momentum only in 2015. Its advantages are obvious compared to the traditional management model, however, categorical management is not a universal solution to all problems. The data of enterprises show that only 6% of enterprises did not have a positive effect from the introduction of categorical management, the rest of the companies had: increased turnover, margins, average check, inventory turnover, increase in the number of customers and total profit. All this indicates that the problems of implementation of categorical management in domestic enterprises should be resisted and solved, because it will help increase their competitiveness. Among the main tasks of category management are: optimization and formation of the company's product range, selection and selection of strategies and business models for each of the product categories, the implementation of automation of category management and more. In the era of e-commerce, categorical management is becoming more popular thanks to online stores and social media stores, of which Instagram and Facebook are the most popular. Due to the division of the company's range into product categories, its time management also becomes more effective. Among the problems of implementation of categorical management at domestic enterprises are: lack of time, financial resources and qualified personnel; insufficient understanding of the mechanism of categorical management by employees, lack of a unified vision of integration into business processes; resistance of personnel to changes; lack of a single clear strategy and automated system; insufficient motivation of top management. There are criteria for the readiness of the enterprise to apply categorical management, namely: mastery of employees in the methodology of categorical management; optimization of organizational structure in accordance with the principles of categorical management, etc. According to these criteria, many domestic enterprises, especially small and medium-sized businesses, are not ready to implement this business category. There are also different concepts of categorical management: impulsive, target, seasonal, routine, competence. All these concepts have their own characteristics according to which the product can be classified. In the future, this facilitates the process of categorical management and not only that, which should serve as an incentive for the introduction of categorical management in domestic enterprises.

„Wir haben uns vorgekämpft“

Die Vorstände Michael Faupel und Dirk Thärichen sprechen über den Turnaround der Konsumgenossenschaft Leipzig, den Wert von konsequentem Category Management und den Lieferdienst in Zeiten von Corona.

Maximal fokussiert

Konzentration aufs Wesentliche, Category Management und Preiswürdigkeit: Auf der Fläche zeigt die Konsumgenossenschaft Leipzig, wie sie den Turnaround geschafft hat. Und wie sie wieder expandieren will. Mathias Himberg

MODERN TRENDS IN THE ELECTRONIC MARKET FOR HOUSEHOLD APPLIANCES AND ELECTRONICS

The article presents an overview of the current state and trends in the development of retail trade. The main factors affecting the functioning of this area are identified. The dynamics of retail trade turnover in Russia, including by form of ownership, is presented. It is noted that the priorities of the development of the sphere remain the development of category management, as well as digital service and e-commerce, i.e. innovative technologies – the present and future of trade.

„Es ist das Richtige“

Nachhaltigkeit wird im Handel immer mehr zum zentralen Wettbewerbsfaktor. Wie Aldi die strategische Aufgabe sieht und weiterentwickelt, sagen Tobias Heinbockel, der das Category Management im Norden verantwortet, und Erik Döbele, Einkaufschef im Süden.

Super-Items Created by Mere Presence of Visual Material on Retail Displays

This study focuses on the perception of numerosity of item sets placed in retail displays. Previous studies have demonstrated that the item sets’ perceived numerosity decreases as the number of polygonal shapes placed in a panel behind a display increases. Such a result was explained by a non-spatial clustering phenomenon exerted by the shapes. Our research reveals the perceptual mechanisms underlying the described effect. Using an eye-tracking procedure, we highlight that upon augmenting the number of polygonal shapes in the decision-making context: (a) there is a significant decrease in the number of total fixations per display; (b) there is an underestimation of the perceived numerosity of item sets involved. The findings suggest that the mere presence of visual shapes can alter perception generating complex objects or “super-items”, which tend to perceptually replace entire item sets. We also propose managerial implications in terms of category management and merchandising.

Management of the Company Product Policies: Traditional Retail and Category Management

The purpose of this work is a comparative analysis of existing approaches to the management of the company’s assortment policy (traditional approach and category management), determining their main differences, advantages and disadvantages, as well as identifying the amount of each of them. The article gives a brief description and definitions of existing approaches to the management of the company’s assortment policy. On the basis of 17 criteria the comparative analysis of approaches allowing to reveal their main differences is carried. According to the survey of 18 category managers of the retailers of the Urals Federal district revealed that at present category management is actively implemented in the commercial networks of the Ural Federal district; it is gradually substituting the traditional approach. However, the trading network of the Ural Federal district did not take the traditional approach or category management, demonstrating the predominance of mixed forms of management of the assortment policy of trade networks. The degree distribution of these approaches in various retailers varies significantly between the research allowed to identify a large potential for further development and growth of the trade networks of the Ural Federal district, which will allow them to get better financial results from the trading activities.