In this glossary, you will find a list of commonly used category management terms. For a more in-depth guide to category management in the retail world, visit our Ultimate Guide to Category Management
A shopper’s affinity to repeatedly purchase products or services from the same brand or manufacturer even when competitors provide a number of new or better purchasing opportunities.
A recurring review of categories and subcategories to evaluate the performance of the share, sales, and profitability of goods.
A tactical approach to managing groups of products by creating mutually beneficial partnerships between traders that aims to maximize profit and sales while ensuring consumer satisfaction. This includes optimising promotion, pricing, shelving, and the assortment of products or services based on market data. Category Management is driven by data and is a continuous process that adapts to market research. Also referred to as CatMan or CM
Category Hierarchy / Category Decision Tree
A consumer’s hierarchy of priorities that influence their decision-making on their purchases. The decision tree is commonly visualised as a family tree that specifies product attributes such as brand, flavour, price, size, etc.
A product or service’s end user. A consumer and shopper may not necessarily be the same as the shopper is the individual or individuals buying the goods. In families, parents are usually the shoppers and the entire family, including the children, are the consumers.
A product’s average sale on a given timeline.
A part of a store’s shelves or fixtures that a shopper sees first when approaching the shelves. Goods displayed at eye level usually are noticed first.
These are the most frequently purchased products such as coffee, tea, cereal, milk, bread, and salty snacks. There is a strong competition in these categories in terms of promotions, what kind of space it gets and pricing
Items falling into this category generally occupy less space, does not offer promotions as frequent as Core Categories. These are items not usually found on a shopper’s list for instance greeting cards, plastic covers, or electrical tape.
Ready to Eat (RTE)
RTE items are any item of food that does not need cooking or has already been cooked and can be eaten straight away. For example, porridge needs to be prepared, whilst cornflakes can be eaten straight out of the packet.
These are products purchased occasionally in certain periods of the year. Typical examples are cards and roses on valentines, turkeys and cranberry jelly on Thanksgiving, or generally desirable foods during different seasons.