NATIONAL INSTITUTE OF FASHION TECHNOLOGY, CHENNAI DEPARTMENT OF FASHION MANAGEMENT STUDIES

ASSIGNMENT ON CATEGORY MANAGEMENT

Submitted To: Mrs.Malar Selvi, Associate Professor, NIFT,Chennai

Submitted By:
Govindasamy. A Rekha Prasath Vinoth khanna .B Vasanth .G

CATEGORY MANAGEMENT Category management is an organizational 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 categoryby-category basis with an eye to maximizing the profit of the category as a whole. Category management is a process that involves managing product categories as business units and customizing them [on a store by store basis] to satisfy customer needs. (Nielsen) The strategic management of product groups through trade partnerships which aims to maximize sales and profit by satisfying consumer and shopper needs (Institute of Grocery Distribution), in other words marketing strategy in which a full line of products (instead of the individual products or brands) is managed as a strategic business unit (SBU). The Nielsen definition, published in 1992, was a little ahead of its time in that customising product offerings on a store by store basis is logistically difficult and is now not considered a necessary part of category management; it is a concept now referred to as micromarketing. Nevertheless, most grocery retailers will segment stores at least by size, and select product assortments accordingly. WalMart's Store of the Community, implemented in North America is one of the few examples of where product offerings are tailored right down to the specific store.

DEFINITION OF A CATEGORY The Nielsen definition of a category, used as the basic definition across the industry is that the products should meet a similar consumer need, or that the products should be inter-related or substitutable. The Nielsen definition also includes a provision that products placed together in the same category should be logistically manageable in store (for example there may be issues in having room-temperature and chilled products together in the same category even though the initial two conditions are met). However, this definition does not explain how the process often

works in practical retailing situations, where demographic or marketing considerations take precedence.

There are two key elements of category management:

Category management aims to provide the shopper and consumer with what they want, where they want it, and when they want it. Products are grouped together into categories to reflect customers needs based on how the product is used, consumed or purchased.

COMPANY PROFILE OF BATAThe company was founded in 1894 by Tom Baa whose family had been cobblers for generations. A large order from the army, military shoes and rising demand for them, during World War I started rapid growth and small manufacture turned into modern industrial concern, one of the first mass producers of shoes. Bata India Ltd is the largest footwear retailer and the leader in the footwear industry in India. The company is engaged in the business of manufacturing and trading of footwear and accessories through their retail and wholesale network. They are having their production facilities at Batanagar in West Bengal, Patna and Hathidah in Bihar, Faridabad in Haryana, Bangalore in Karnataka and Hosur in Tamilnadu. The company operates in two segments, namely footwear & accessories, and investments in joint venture for surplus property development. Their Footwear & Accessories segment is engaged in the business of manufacturing and trading of footwear and accessories items through their retail and wholesale network. Bata India Ltd was incorporated in the year 1931 as Bata Shoe Company Pvt Ltd in Konngar, West Bengal, which was then shifted to Batanagar. Batanagar was the first manufacturing facility in the Indian shoe industry to receive the ISO 9001 certification. The company went public in 1973. They changed their name to Bata India Ltd. The company has entered into an agreement with Bata Ltd of Toronto, Canada for supply of technical know-how and services

such as Footwear technology and design, brand development, product development, retailing and information systems for a period of ten years from January 1, 2001. In the year 2010, the company won the 'Consumer Awards 2010' as 'India's Most Preferred Retailer' given by CNBC Awaaz. The company opened 108 new large format stores across all major towns in India. Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata Shoe Organization. Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the first building of Batas operation - now called the Bata. In the years that followed, the overall site was doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification. The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata India has established itself as Indias largest footwear retailer. Its retail network of over 1200 stores gives it a reach / coverage that no other footwear company can match. The stores are present in good locations and can be found in all the metros, mini-metros and towns Batas smart looking new stores supported by a range of better quality products are aimed at offering a superior shopping experience to its customers. The Company also operates a large non retail distribution network through its urban wholesale division and caters to millions of customers through over 30,000 dealers. Bata Today

Serves 1 million customers per day Employs more than 40,000 people Operates 5000 retail stores Manages a retail presence in over 70 countries Runs 33 production facilities across 22 countries

NAME OF BRANDS OF BATA

Bata Bata ambassador Bata technology Baby bubbles Bata comfit Bata industrial Bubble gummers Marie Claire

North star Patapata Power Safari Sundrops Toughees

PROCESS OF CATEGORY MANAGEMENT The industry standard model for category management is the 8-step process, or 8-step cycle developed by the Partnering Group they are as follows:1. 2. 3. 4. 5. 6. 7. 8. Define the category (i.e. what products are included/excluded). Define the role of the category within the retailer. Assess the current performance. Set objectives and targets for the category. Devise an overall Strategy. Devise specific tactics. Implementation. The eighth step is one of review which takes us back to step 1.

The 8-step process, whilst being very comprehensive and thorough has been criticized for being rather too unwieldy and time-consuming in today's fast-moving sales environment; in one survey only 9% of supplier companies stated they used the full 8-step process. The current industry trend is for supplier companies to use the standard process as a basis to develop their own more streamlined processes, tailored to their own particular products.

Plan Implementation Category Tactics

Category Strategy

Category Scorecard Category Review

Category Assessment

Category Role

Category Definition

CATEGORY MANAGEMENT IN BATA DEFINITION & ROLE OF CATEGORY: BATA MENS FOOTWEAR CATEGORY:

MENS BRANDS IN BATA: Formals Bata ,Bata Flexible , Bata Moscassino , Ambassdor , Scholl ,Comfit ,Hush Puppies Casuals Bata , North star , Hush Puppies Outdoors Weinbrenner Sports Power , Reebok

Sizes Available: 6, 7,8,9,10,11 (It varies with Brands) PRICE RANGE: Shoes Formals --- Rs.749 (BATA) Rs.4299 (Hush Puppies) Casuals --- Rs.1399 Rs.1699

Sports --- Rs.999 (Power) Rs.3299 (Reebok) Outdoors --- Rs.1499- Rs.2999

Sandals --- Rs.249 Rs. 2499 Chappals --- Rs.249 RS. 2299 PRODUCT LIFE CYCLE IN BATA BRAND:

PLC

Introduction Hush Puppies Growth Weinbrenner, North Star, Bata Comfit Maturity Power Decline Hawai ASSESMENT BEST SELLING PRODUCTS: Formal shoes(Hush puppies) Casual shoes(Power & Weinbrenner ) Chappals (North star ) Sports ( Action)

Bata India reports outstanding results for 1st Quarter of 2012 41% growth in Net Profit, 31% in Sales Continues aggressive expansion, opens 67 new stores SCORE CARD: Target sales for six months One crore sales It also varies with the season and festival times.

STOCK and REPLENISHMENT: The Warehouse is located in Periyapalayam, Chennai and the replenishment in the shelves will be takes place once in a week. STRATEGIES IMPLEMENTED:

Scrap books on the billing counter. New arrivals displayed in the entrance of the store. Products are shelved according to the various factors like brands, price, and color.

REFERENCES:

Made a personal interaction with Mr.Narayana Das, Store Manager, Bata, Kottivakkam, Chennai www.wikipedia.com www.bata.com http://www.moneycontrol.com