In category planning process, category roles are all about making choices and prioritizing one category over another. They have significant implications on how the category plan has been implemented and therefore, defining category roles is a critical phase of the category planning process. In order to improve overall sales and deliver superior customer experience, category roles provide useful insights by identifying categories with greater importance and compelling focused efforts. In this blog, let’s take a look at some of the important category roles,
1. Destination: Category which comes under the role of destination contains products with which the retailer wants to profile himself. It aims to position a retailer as a primary category provider and helps to define him as the store of choice by delivering consistent as well as superior customer experience.
2. Routine: Category which comes under the role of routine contains products which provides competitive value for the consumer’s everyday needs. It aims to position retailer as one of the preferred category providers.
3. Seasonal: Category containing products which are purchased occasionally, is considered as seasonal category. It plays secondary role in delivering profits. Seasonal category can be used by a retailer to differentiate himself from competition during a certain period of the year.
4. Convenience: Category which contains products that are not found usually on routine shopping list comes under the role of convenience. Products in these categories play an important role in the area of profit generation and margin enhancement as prices tend to be less competitive and promoted less frequently.
These roles are further segmented as Loyalty Drivers and Profit Contributors as shown in the below snapshot.
What is category planning process & what does it entail? Click here to learn more.
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