Algorithm of Forming the Category Management in the Diy Market Segment

Abstract

The aim of the paper is to formulate a scientifically grounded and expedient for use in practice algorithm of the formation of category management in the DIY segment. The subject of research is not only this technology but also its commercial exploitation. The basic hypothesis is that category management which is understood as the formation and implementation of the technology management of the product range by using information and innovation support, strategy generation and methodical use of management tools for making the key competence and ensuring long-term competitiveness of the enterprise. Category management is developing fast in Ukraine and provides a balanced work of the company in any segment of the market that is connected with the retailer. The growing domestic market is attracted by the world's foremost «Do It Yourself» (the "DIY") trading format. This tendency is stipulated by an increase in consumer requirements, not only in the quality of goods, but also in the technology of the process of making a purchase. The implementation of category management program is not always perceived by the staff as it is a relatively new area of work. The point is that the introduction of category management is most likely connected with a change in the structure of purchases and sales. The practical significance of the research results is related to the possibility of using them directly by entrepreneurs when assessing the implementation of category management.

Diagnosing category management in a pharmacy retail chain

“…Categorical management does not affect the volume and nature of drug prescriptions but allows prompt response to the changing requests of patients and their characteristics related to individual sensitivity to medications. In order to increase the effectiveness of category management, it is important to take into account the postulates described in [22]. The authors substantiated that the consumer is a key stakeholder, the "mix" of product categories ensures assortment management, the market needs and the interaction between the consumer and the retailer are relevant.…”

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“…In 2018, the authors published a paper explaining the concept of category management, which is understood as the development and implementation of the technology management of the product range by using information and innovation support, strategy generation, and methodical use of management tools for making the key competence and ensuring the long-term competitiveness of the enterprise (Y. Romat et al, 2018). O. Rusak & T. Palamarchuk (2020) described territorial marketing of agribusiness development in rural areas.…”

The category management mechanisms by the company’s assortment policy implementation at all the assortment’s stages

“…Так, Е. Дихтль и Х. Хершген определяют ассортиментную политику как важнейший инструмент комплекса маркетинга, заключающийся в создании такой совокупности отдельных продуктов, которая имеет преимущества с точки зрения покупателей [15] Анализ существующих механизмов и методик управления ассортиментом позволяет отметить, что они не содержат информации и ограничений по их применению, а значит, могут быть использованы на всех стадиях жизненного цикла ассортимента торговой компании. Наряду с этим опрос действующих категорийных менеджеров торговых компаний Уральского федерального округа [17] и проведенные исследования по практике реализации существующих методик категорийного менеджмента [18][19][20][21] [24; 25]; Y. Romat [11]; А.В. Овчинниковой, В.В.…”

“…Соответственно, при формировании ассортимента независимо от канала и формата продаж возникает необходимость учитывать текущую ситуацию и анализировать покупательское поведение по всем каналам продаж. С целью решения данной проблемы отечественные и зарубежные ученые предпринимают попытки поиска новых инструментов и уточнения действующих методик управления ассортиментной политикой компании на основе категорийного менеджмента [9][10][11]. Между тем существующие методики формирования и реализации ассортиментной политики компании ориентированы на вторую-четвертую стадии жизненного цикла ассортимента.…”