The Accelerated Analytics service provides category managers with a robust tool for analyzing sales and inventory at a store level. Not only for the current week but also for all the weeks of selling in the database. Armed with this data the category manager can very effectively identify slow moving items and stock-out's on a proactive basis. In addition the Accelerated Analytics service can provide demographic and weather data at a store level so the category manager can understand how these variables impact performance.

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What is Category Management?
Category Management is a retail business intelligence and marketing strategy that analyzes consumers and products and the way they interact. Products are collated into like groups called categories. Once defined, these categories become individual business units and are managed as such. Like any other business unit, they go through regular reviews to determine profitability, trends, opportunities, etc. Consumers are analyzed at the point of sale for trends and activities that will assist retailers in tailoring marketing and displays to consumer’s purchasing habits.
 
How does Category Management work?
Category Management works by providing small, specific business units that retailers and their suppliers can analyze individually. The information from each category analysis is compared to the information from other categories as well as the information generated about consumer trends and activities. Retailers and suppliers then collaborate to determine the best way to market and sell their product(s). Some of the key points of analysis are:

Analyzing these questions yields detailed information about how marketing can be tailored to different categories, how retailers and manufacturers can influence purchases by product positioning, brand promotion, pricing, etc., and how any of these can be altered to increase sales and revenue based on continued analysis of the consumer. For Category Management to work, however, there must be effective collaboration between retailers and suppliers.What are some of the key benefits of Category Management?
 
Improved Productivity. Because product categories are small, specific business units, category managers are able to define concrete roles and objectives for their categories. This allows them to focus on strategies that specifically benefit their category. Both retailers and suppliers will benefit from this narrow focus and collaborate to accomplish mutually beneficial goals.
 
Reduced Costs. The Category Management model provides a more efficient process than traditional management. Smaller, individual categories are easier to manage.
 
Higher Profit. Category Management relates efficient management and consumer-specific marketing to increase sales. Retailers and suppliers can collaborate to eliminate unnecessary effort and better target their customers. Combined with improved productivity and reduced costs, Category Management offers both retailers and suppliers a marked increase in profit levels.

Portions of the above text are courtesy of ProClarity (Copyright© 2006, a Microsoft Subsidiary) and Envirosell