Category and Merchandise Management
In today’s competitive business environment, it is essential for all the retail organizations and retailers to effectively categorize and present their goods and services that influence the customers’ perception and attract them towards the products and services effectively. Through the effective management of category and merchandise, a retail company can also effectively provide a detailed description about the products and services to the customers (Varley, 2013). It helps the companies to create effective management of their products and services. This paper discusses the category and merchandise management through the different key concepts and frameworks. In order to provide detailed understanding about category and merchandise management, the selected company is Gap, Inc. Through this, this paper is also able to describe the performance measures that company uses to create effective analysis of its management. Category Management of Gap Inc
Category management is an essential part of any retailer that helps to maintain effective stock of different products and services at the stores. In the category management, Gap Inc. creates effective management of the categories through dealing in different categories such as branded and non-branded apparel. In general, company deals in apparel and operates five of the most recognized apparel brands such as Gap, banana republic, Old Navy, Piperlime and Athleta. In the categories, company offers clothing, accessories and personal caring products for children, man, women and old age people. In order to perform effective category management, company establishes supportive relationship with the suppliers through sharing information with them (Ireland, Hoskisson & Hitt, 2008). It helps the company to manage its categories effectively. At the different stores, company divides its products in different sections and category according the needs and demands of customers. the company have different stores that are specialized in particular categories as some stores only deals in man apparels and some stores only deals in woman and children apparels. It helps the company to manage categories in effective way. The effective management of categories also leads the company to achieve profits from the different markets. To effectively manage the categories, company also makes huge investment in specialty stores such as Gap, GapKids, Gap Generation and banana republic (Baran, Galka & Strunk, 2008). Along with other five major brand names, Gap stores also include different categories such as babyGap, GapMaternity, GapBody, Gap and GapKids. These stores provide cloth and accessories according to the categories and needs & demand of the customers (Cheng & Choi, 2010). It helps company to manage different categories effectively in the market. To effectively manage the categories, Gap, Inc. also opened stores in different geographical areas. Through opening different stores in various geographical areas, the company enabled to manage categories in effective way. These stores include cloth products from high range to low range that supports the customers to select cloth products in significant manner. It also helps the company to effectively manage cloth categories at the stores (Turconi, 2010). Different brand retail stores of company consider product categories according to the needs and demands of the customers that support stores to manage categories of cloth products. To manage the different categories at stores, company also uses brand management strategies. In this, company conducts a survey that identifies the preferences and demand of the customers. With the support of this, company also develops understanding of needs of branded cloths in different categories. It helps the firm to manage the categories in different stores at various geographical areas of the world. It is identified that ‘banana republic’ also expends its categories such...
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