Abstract
Among global countries aggressively apply QR (Quick Response)/ ECR (Efficient Consumer Response), Category Management is an essential component of demand side in QR/ECR. So called “Category Management” is, the joint aspect of manufacturers and retailers who are flexible and responsive enough to react quickly to consumers’ demand. Category Management is a process that involves managing product categories as business units and customizing them on a store-by-store basis to satisfy customers’ needs. It transforms retailer “buyers” and manufacturer “sellers” into entrepreneurs. It is about mere 10 years plus those western companies applying the Category Management achieve positive results. And from the past records, those companies adapt Category Management in general are big retailers. Very few small and medium retailers in Taiwan apply Category Management that induces the motives of this study to work out pertinent methods for small and medium supermarkets to apply.This research is to introduce Category Management to a small and medium class supermarket - IKL as the subject of case study. The study proposes a modified method to introduce the Category Management which includes: (1)internal appraisal, (2)category definition, (3)category role, (4)category assessment, (5)category scorecard, (6)category strategies, (7)category tactics, (8)category implemention, and (9)category review 9 steps. After implementing, the cooperation not only achieves (1)category’s sales increases 8%, (2)category’s gross profit increases 4.8%, (3)category’s average days of inventory reduces 6 days, (4)category’s assortment of products on shelves reduces 5%, and so on tangible benefits, but also earns following intangible advantages:1. Through the introduction of Category Management to enhance the company’s management ability: Through the introduction of Category Management as a learning process to internalize it as a formal operation.2. Repetitively review the implication of Category Management to achieve the utmost realm, then the company is able to ride the tide of the changing environment.3. Improve the partner relationship between suppliers and the retailer.Thus, after this study we find that Category Management not only can be applied in big retailers but also in small and medium ones.