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Category management has been turned into “an overly complex,
jargon-laden, number crunching exercise,
“ according to a specialist consultant
in the area.
Jonathan Smith, the managing director of Axis Management Consulting, says
that category management is in desperate
need of reform. He claims that a sound
concept has been hijacked by management
consultancies that have created complex
systems to further their own ends.
Smith says that as a result 90 per cent of commercial people in the
grocery business are “sceptical,
disillusioned or plain hostile toward the
idea”.
Category management is generally taken to mean the practice of
manufacturers and retailers working
together to boost total category profits
through better understanding of consumer
needs, typically in the grocery industry.
The practice became popular about ten
years ago.
Smith, who was speaking at the Marketing Week conference on category
management this week, says: “ A fresh
start is needed. This new form of category
management needs to be drastically
simplified, less obsessed with process and
more clearly focused on results.
“Focused analysis needs to replace
massive data trawling exercises, and there
needs to be increased emphasis on
qualitative information and on work at
retail store level,” he adds.
He compares the situation category management finds itself in to that of
CRM, which many in the marketing industry
also feel is in need of a shake up.
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