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: |
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Subjective (internally focused) |
Objective |
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Just about suppliers and retailers |
Also about the consumer |
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Short-term |
A big picture direction |
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Tactical/ad hoc |
Progression over time |
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Separate function |
Seamless across entire business |
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Reactive |
Proactive |
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All about data |
Making fact-based decisions |
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Trading |
Planning ahead |
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More promotions |
Addressing the category as a whole |
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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.