what is a category manager?
As a category manager, your primary focus is to enhance the development and use of a product or service. Since you manage a specific product category, you are responsible for promoting and pricing its products. You also develop strategies to promote the marketing efforts for a product category and increase sales.
Some category managers also research new ideas like substitutes and complementary goods for the categories to improve product visibility and revenue. As a category manager, you will work in teams throughout the research and development stages and develop strategic marketing plans to boost customer engagement and promotions. You rely on data analysis to understand valuable category insights like customer behaviour and purchases and use the information to drive growth.
what does a category manager do?
As a category manager, you satisfy consumer and company needs. That means you need in-depth knowledge of the target consumer, from their preferences and where they purchase their products to the popular promotion methods in the demographic. You spend time researching promotional methods suitable for the target audience of your product category. You determine product prices by balancing the company's profit margin with competitor prices. You also devise ways to use prices to attract more sales and upsell other products in the category using discounts.
Would working as a category manager suit your interest in sales and strategic thinking skills? Then read on to find out what competencies and qualifications you need to thrive in a category manager role.
average salary of a category manager
The average salary of a category manager according to ONS is £47,017 per year or £24.11 per hour. At an entry-level position, a category manager earns an average salary of £38,831 annually. When you have built your experience and improved your educational qualifications, your earnings increase to £60,446 per year. Senior category managers earn a median salary of £55,029 annually and take home up to £70,000 per year with additional experience.
what affects the salary of a category manager?
A category manager's salary mainly depends on experience and academic qualifications. Hence, you can improve your salary prospects by elevating your education level or adding an extra degree or certifications to your resume. As a category manager, you should have diverse experience in various aspects of the job. Working in various industries improves your exposure and experience level. Some employers also pay based on the job's complexity. If you work on technical product categories, you are likely to earn more than working on retail goods. The company size also affects your earnings since large multinationals have the resources to pay higher salaries and additional benefits. You will also work in a specific product category. Small businesses usually assign additional responsibilities to category managers, and the pay is low due to the limited resources.
types of category managers
Some types of category managers include:
- retail category manager: as a category manager working for a retailer, you devote your time to inventory management, price planning and visual merchandising. You also meet with suppliers to ensure optimal prices for a product category. Your role involves identifying gaps and helping the retailer capitalise on new trends by allocating additional shelf space and increasing the visibility of fast-moving products. Retail category managers also ensure the correct product assortment is provided to consumers.
- supply category manager: when you are working for a supplier, you improve the performance of a specific product category in various stores. You can devise ways to maximise shelf space and placement and analyse competitor products' performance in a store. Most category managers working with suppliers spend time negotiating with retailers on the placement of the product categories.
working as a category manager
The job of a category manager is to maximise revenue by providing the right products to the consumers at the appropriate time. To become a category manager, you need a firm grasp of daily activities.
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category manager job description
As a category manager, you are involved in various business activities, including:
- meeting with different stakeholders in the market and executives: as a category manager, you work alongside the public relations, customer service and sales teams. Your job is to organise them and ensure they implement the recommended promotion strategies for a product category. You monitor the display tactics in-store, pricing, stock control and promotions. You also liaise with the executive management to make sure category promotion strategies align with company goals and policies.
- analysing the market and sales data: a category manager uses sales and marketing data to analyse consumer behaviours. Statistical analysis is vital in pricing since you can deduce a price range that the target customers are willing to pay. Category managers use data to create shelf layouts and display tactics that optimise revenue and product performance in retail outlets.
- identifying opportunity gaps: as a category manager, you need to identify expansion opportunities for your employer. That involves going through reports on market performance and comparing the data with sales on specific product categories.
- assortment planning: a category manager determines the products to add or remove from a specific category or range. You also help suppliers with assortments in various retail spaces.
- floor planning and space allocation: in retail spaces, you arrange the floor space strategically to ensure flow and create hot spots for fast-moving products. You use data to allocate shelf space to various product categories and ensure top-performing items have sufficient space.
- assisting with visual merchandising of specific product categories: as a category manager, you have to assist store personnel in creating visually appealing displays for various product categories. You can use brand colours and promotional tools to improve sales.
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work environment
Most category managers work in an indoor work environment in a back office of a retail store or the sales section. Strategic decisions require spending hours in the office completing market research and analysing data. When you are assisting retailers in organising floor plans and shelf allocation, you spend most of the day on your feet analysing the shelf spaces in the store.
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who are your colleagues?
As a category manager, you work in the retail industry, and your colleagues might include sales directors, customer service administrators and service managers. Since you also handle inventory and procurement matters, you will work in close proximity to logistics managers, procurement managers role and other specialists, including business development managers, product managers, and project managers.
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work schedule
Category managers work regular office hours from 9 am to 5 pm on full-time schedules. Sometimes, you work evenings or weekends to complete office work or create new product range plans. Some employers have flexible work schedules like part-time options and contracts. The role also involves travelling to meet suppliers and negotiate prices with various retailers.
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job outlook
Working as a category manager gives you a well-defined career path. You can work towards a senior category manager role from the entry-level position before becoming a marketing manager or marketing director. Some category managers specialise in procurement roles or digital marketing and become procurement managers and digital marketing manager post.
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advantages of finding a category manager job through randstad
Finding your category manager job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a category manager is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
education and skills
A career as a category manager requires the following educational qualifications:
- university degree: before you become a category manager, you need to develop a marketing strategy, consumer behaviour and business statistics knowledge. You can pursue a bachelor's degree course in marketing or business management. An MBA is also an added advantage.
- work experience: since category manager is a leadership role, you need some years of experience, even in an entry-level position. You can complete a marketing and management internship or join a graduate trainee programme to improve your skills and experience. Voluntary work and job placement in university also improve your prospects.
skills and competencies
Improve the following skills for a successful career as a category manager:
- commercial expertise: as a category manager, it is crucial to understand the ongoing industry scenario, from procurement-related risks and investment outcomes to consumer spending and pricing models. Commercial expertise also helps you close deals and create strategic plans for product categories.
- project management skills: a category manager supervises various aspects of the product, including development and stakeholder management. You need project management skills to navigate cross-functional working styles and manage various aspects of product development, such as budgeting and time management.
- digital expertise: as a category manager, you have to utilise technology to improve the performance of your category. Computer skills help with data analysis, digital campaigns and procurement or inventory management. You also need knowledge of Microsoft Office to prepare reports.
- strategic thinking: your job involves initiating strategic plans that improve product category sales or product development. That means you need strategic thinking skills to analyse various strategies and tailor the marketing approach to suit a product range.
- management skills: as a category manager, you work with various departments in the organisation. Leadership and management skills help you coordinate the groups and motivate your teams towards a specific goal.
FAQs
FAQs about working as a category manager
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what does a category manager do?
A category manager identifies ways to promote goods from a specific product range. They use marketing strategies and study the target market to identify the best tactics to increase sales.
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what is a good category manager?
A good category manager uses their strategic thinking skills to develop pricing and visual merchandising strategies to promote a product. They also help suppliers analyse competitors and maximise consumer trends.
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what do category managers earn?
A category manager earns a median salary of £47,017 per year. As you increase your experience and skills, your potential earnings increase.
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is being a category manager a good job?
Becoming a category manager is an exciting career with promising prospects in various fields. You also help suppliers and retailers achieve their goals and increase in-store sales.
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what are the qualifications of a category manager?
A category manager needs a bachelor's degree in marketing or business management. Work experience in relevant fields is also important.
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how do I apply for a category manager vacancy?
Applying for a category manager job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here!
