FMCG Glossary

What is Category Management?

Definition

Category Management is the process of managing a product category as a strategic business unit, with the goal of maximising category sales and profitability at retail. It involves range management, shelf space allocation, pricing, and promotional strategy from a whole-category perspective — not just from a single brand's viewpoint.

Examples of Category Management in FMCG

  • A Category Manager presenting a range review to a supermarket buyer based on Nielsen panel data
  • Recommending a planogram that increases the category by 8% by listing 2 new products and removing 3 slow movers
  • Developing a category strategy presentation as part of a JBP

Category Management in the FMCG Industry

Introduced by Brian Harris and Walmart in the 1980s, category management became standard practice across major grocery retailers. Brands who demonstrate strong category management capabilities are often appointed 'category captains' by retailers, giving them disproportionate influence over range and space decisions. This is a significant competitive advantage.

Why Category Management Matters for Your FMCG Career

Category Manager is a highly regarded and well-paid role in FMCG, bridging the commercial and analytical worlds. Strong category managers progress to Head of Category, Commercial Director, or Channel Director roles. Nielsen, IRI, and Dunnhumby experience is essential for senior category roles.

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