Use case and data
Category management is analyzing a discrete set of similar or related items sold by a retailer, grouped together, as a strategic business unit. This allows the retailer to then evaluate these units by their turnover and profitability. Brain F. Harris is the inventor of the study of category management. His eight-step process, famously called the Brain Harris model, is used widely today. For more information about category management, refer to http://www.nielsen.com/tw/en/insights/reports/2014/category-management-the-win-win-platform-for-manufacturers-and-retailers.html.
The Nielsen definition of a category is based on product features. Products that exhibit the following features are put under the same category:
- They should meet similar end-consumer needs
- Products should be interrelated, for example, substitutable
- We should be able to place the products together on a retailer shelf
When analyzing purchasing behavior, several patterns emerge; some products are sold together...
