Category management of dm focuses on tactics

Rita Bokor, assortment manager of dm-drogeriemarkt is familiar with the topic of category management, as she is the author of a number of publications about this topic. – How and when did your involvement in category management begin? B. R.: –The first time I heard about it was 9 years ago from one our partners. I liked the system because it allows clear, long term objectives and points of focus to be defined. − How long has dm been using category management? – dm has been using category management in Hungary for 7-8 years with minor interruptions. Regarding other markets, I have no information. – What target categories have been defined in Hungary and abroad? Are there any differences between the approach used here and in other countries? – There are large differences between different countries regarding the importance of specific categories. – How are category roles defined? To what extent is cash register data analysed? – Roles are defined on the basis of our own data and market research results. Small categories present the biggest challenge, because working with these is a very complex process. On the other hand, these allow a chain to distinguish itself from others. – How do you get to know your customers? – Our own data is very detailed and we conduct periodic surveys. Analysing the data is the job of the assortment manager. – To what extent are manufacturers involved in defining target categories and tactics? To what extent are manufacturers able to consider a category instead of a brand? Is true co-operation regarding category roles possible? – Unfortunately, in most cases our partners only provide research data from foreign sources which is not perfectly suitable for use in the Hungarian market. Our partners are not deeply involved in defining strategy, as this is our job. We do co-operate with them regarding tactics, this is what our category management focuses on. Results are best with partners who allow access to their data and have a team dedicated to category management. – How many target categories have been defined and in what way are these different from the others? – We have 3 target categories, where we intend to be the best. Assortment needs to be the most up to date element, as customers expect us to be trendy. We have to come up with prices which are stable for 4 months, can be financed by us and the supplier and is competitive. In-out promotional packages allow prices to be made competitive. – What is the role played by private labels in target categories? – It depends on how strong it is in the specific category. We have strong private labels in the most important categories. Regarding assortment and placement, our private labels are the absolute priority for us.