Category management in the pharmaceutical area refers to the administration of a group of products or services that are similar or substitutes, which supports consumers to a greater demand for them, ensuring that their needs are covered.
The main conclusion of this categorization is to capture the customer’s attention through a constant offer in order to obtain the highest possible profitability, that is, it is to manage each business unit or category, such as pain relief products. , for beauty or for children in pharmacies in order to determine the selection of supply, inventory management, its organization and its advertising.
In order to give good management by categories, it is important to carry out practical analyzes that provide efficient information on what products are currently being sold and, above all, how to sell them and how much is the profit or profitability of each one, that is, this management model analyzes sales parameters, their benefits and profitability to be able to understand more easily the operation of each category, which additionally makes it possible to prioritize the time invested in specific actions for each category.
There are many types of families or categories, such as:
- By customer: In this category the male and female gender undoubtedly fall, as do pregnant women, children or the elderly.
- By age: Obviously the most relevant in this categorization are children, adults and the elderly, but all those families that have young children or adolescents are also included
- By type: This categorization refers to products, which can be related to cosmetic or intimate or corporal hygiene products, as well as products or food supplements for infants or herbal products
- By brand: In this category it could be by private label or by leading commercial brands in the market.
- By utility: This is one of the most important categorizations, since this is where you can see the product families determined by their use and their substituents, they can be categorized by products to lose weight or to relieve pain or to stop smoking.
In summary, the benefits of category management are basically:
- Significantly increase the satisfaction of end consumers, since they will be able to find what they are looking for faster and easier, they will also be able to make value evaluations regarding price, since one product will be close to the other.
- There will be a better management of inventories and the placement of products in pharmacies, which will lead to greater control of drugs or products.
- By having a good management by product, the intervention of vendors will not be necessary, since the end customers will be able to locate the product without the need for accompaniment.
- Marketing costs are reduced
- Greater productivity, since by using management tools, daily strategies are established