Defined

Category Development is the process of introducing business decision-making tools that are designed to mutually drive value creation in yours and your retail partners' businesses.

By practising Category Development, manufacturers are encouraged to ask themselves, how are our current business strategies delivering increased retailer and consumer value?

Value creation can be delivered in a number of forms: driving increased category usage, delivering innovation for which consumers will pay a premium, or shifting the product mix to higher value options.

Category Development is not:

Category Development is:

Subjective (internally focused)

Objective

Just about suppliers and retailers

Also about the consumer

Short-term

A big picture direction

Tactical/ad hoc

Progression over time

Separate function

Seamless across entire business

Reactive

Proactive

All about data

Making fact-based decisions

Trading

Planning ahead

More promotions

Addressing the category as a whole

Justifying enhanced terms

Value creation focused


Category development is about working with the retailer to leverage consumer insights to deliver future benefits to consumers, retailers and manufacturers.