Wednesday, May 27, 2009
For today's post, we will talk more about how category management works for Gap as a retailer.
Firstly, we would like to introduce the different product categories available at Gap. Gap has divided its products into different sections in their stores based on age and gender. They have products for:
- Women
- Men
- GapKids (Boys, Girls)
- BabyGap (BabyGirl, BabyBoy, ToddlerGirl, ToddlerBoy)
Category management works for Gap as it caters and provide wider range for its target segments. For example, women not only have basics ( tshirts, jeans), but also other products such as dresses, skirts, and more.
Under GapWomen alone, products are further divided into:
- Shirts & Tops
- Sweaters
- Dresses
- Skirts
- Shorts
- Pants
- Jeans
- Hoodies & Jackets
- Yoga & Sport
- Swim
- Scarves, Hats & Belts
- Handbags
- Shoes
- Socks & Leggings
Under GapMen, products are further divided into:
- Jeans
- Pants
- Shorts
- Swim
- Shirts
- Polos
- T's & Tanks
- Graphic T's
- Sweaters
- Fleece
- Blazers & Vests
- Outerwear
- Underwear & Socks
- Sleep & Lounge
- Fragrance
The products are also further divided for GapKids & GapBaby and they are quite similar to the ones for GapWomen & GapMen, according to the gender. For example, for GapKids for Boys, the products are also further divided into jeans, shirts, pants, outerwear, underwear, graphic t's, and so on.
Definition:
Category management involves strategically managing 'product groups' or 'categories' to ensure that shopper and consumer needs are fully met or exceeded at the point of purchase. Retailers and suppliers work together in collaboration to grow the total category, maximising sales and profits for all parties.
Others may define category management as a term describing a method of managing retail operations. Category management is an organisational approach in which the management of a retail establishment is broken down into categories of like products. Under category management, decisions about product selection, placement, promotion and pricing are made on a category-by-category basis with an eye to maximising the profit of the category as a whole.
For example, when a shopper enters into the store and into the Women section, Gap may have placed some other promotions or offers around that area to attract the shoppers to purchase other products as well.
Another example would be, Gap placing the GapKids section right beside the WomenMaternity section so that when a consumer goes to the Maternity section to buy her clothes, she might be tempted to go into the GapKids or GapBaby section to browse at the clothes there too. Here, we see that Gap is trying to get their customers to buy more or get more shoppers to buy (increasing penetration).
The main aim of category management is to meet shopper and consumer needs. Thus, it is critical that category managers keep updated of all shopper and consumer research. They must also consider political, economic, social, technological and environmental issues, and gauge their relevance and potential impact on the category and retailers.
The purpose of category management is to allow customers find and select their desired item. It is also to help retailers and manufacturers reach consumers. Trading partners need to leverage the power of categories to drive higher shopper penetration, increase shopping frequency and encourage larger basket size. Shoppers go to the store to buy products. Retailers must figure out what categories will drive desirable behaviour in the store. For example, if there is a category with high penetration and high frequency, retailers must focus on having those products in the right location because consumers want them.
Category management has to be used strategically in order to achieve success. Through consumer research, Gap understands their customers better and are aware of what they want. Through these consumer information, Gap will then come out with ways and strategies of how to categorise their products in their stores in such a way that consumers will notice the products when they enter the store. Gap is known to place their promotional items near the entrance of their stores so as to attract the attention of their customers and also the passers-by who, some of them may just be window-shopping. However, if these passers-by get attracted by the products on display at the entrance, they will enter the store and browse at many more products available in the store.
;9:26 AM
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