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Question:

Discuss about the Category Management And comments.
 
 

Answer:


Category

Changes and comments

Analgesics

The given product has a high GP Margin of 49.55%, ST of 7.5 and a LM OF 17%. As the climate is hot, the given product is popular.

 

Baby

The pharmacy should ensure that they stock the given product in high stock. The GP% is at a low of 22.82%. Hence, there could be separate section for the given product.

 

Confectionary

With a LM of 6.2, the GP margin is good at 36.85%. It should be disposed as not good for the image of the company.

Cosmetics

With a LM of 15.3% and ST of 1.2 then the Gross profit % is alright. It should be gotten rid of.

Cough and cold

With a LM of 18.19 LM and ST of 2.5, the stock needs to be decreased.

Digestion

The given category has products which are price sensitive. Various supermarkets sell similar products and then, the pricing needs to be based on competitor pricing. The GP is 41% and hence, price must be decreased to improve sales.

Eye and lens care

The category is performing well and hence no changes are required to be made.

First aid and wound care

The GMROS is not that good and the ST is 4. The profit margin is good at 40.51% and hence, their performance is good. The product holds potential to perform well.  Hence, it is suggested that the GMROS of each item is figured and the one with a high margin needs to be given more space and a good dressing. It is suggested that these items are displayed on a prime position and hence, this will lead to more prestige.

Foot care

The GP margin is quite high but the GMROS is quite low. However, with a ST of 4.36, it seems to be underperforming. If the positioning is changed, it might go a long way in helping to increase the sales. All items in the product need to be examined and the ones with the largest margin should be displayed one.

Gifts

The Gifts have not been performing well and have lower figures in all sections like GMROI and GMROS. Hence, it is suggested that the pharmacy reduces the category and purchase only special gifts which are unique for certain festivals.

Hair care

The range of products occupies a huge LM and the rest of the important dimensions are bad and therefore, the GMROS of each bran should be checked and the best brands be increased.

Hand and nail

The given line has a good GP margin but low GMROS. Remerchandising this category is very crucial.

Home health care

The ST, GMROS are not good. The pharmacy must apply a differentiation strategy, increase the stock and offer reasonable prices to improve popularity.

Household and domestic

The gross profit of the given range is not good. The laundry powder and dishwashing liquid should be removed and space should be given to healthcare.

Oral hygiene

The condition of the given range is very bad. The LM is only 12 as the mouthwashes have been occupying more spaces. A solution for this may be that just a few brands must be kept and the brands kept must be unique.

Perfume Prestige

The perfume prestige range has been performing well and although the GP% is good, the ST is not. Hence, the GMROS of each of the products needs to be tracked

Sinus and allergy

The given range has the highest ST; hence it can be kept the same.

Skin Care

The Skin care section has not been doing well. The GMROS of each project should be analyzed and it was observed that products like eczema and the aqueous lotion need to be kept in stock always

Sun care

The marketing and stocking of the given products need to be placed in a prime position during summer and not marketed during cold season. It has a good GP%.

Vitamin and nutrition

The given category of goods, as observed from the given figure has not been doing well and needs to be marketed properly.

Water

As it has been observed, the ST of the given product is reasonable and hence, no such change is required.

 

Weight Management

The GRMROS, Gross Profit Margin and the ST figures look commendable. However it has been suggested that the products can be re-merchandised and if they are placed next to nutrition and vitamin, they will be able to perform better

Home and office supplies

The Home and office supplies have a Gross Margin of 52% which is good. Hence, no changes are suggested in the given sector.

 
 

References

Amit, R. K., Mehta, P., & Tripathi, R. R. (2015). Optimal shelf-space stocking policy using stochastic dominance under supply-driven demand uncertainty. European Journal of Operational Research, 246(1), 339-342.

Da Silva, S. C., Pereira, L. E. T., Sbrissia, A. F., & Hernandez-Garay, A. (2015). Carbon and nitrogen reserves in marandu palisade grass subjected to intensities of continuous stocking management. The Journal of Agricultural Science, 153(8), 1449-1463. (Da Silva et al., 2015)

McCarthy, B., Delaby, L., Pierce, K. M., McCarthy, J., Fleming, C., Brennan, A., & Horan, B. (2016). The multi-year cumulative effects of alternative stocking rate and grazing management practices on pasture productivity and utilization efficiency. Journal of dairy science, 99(5), 3784-3797.

McCarthy, B., Delaby, L., Pierce, K. M., McCarthy, J., Fleming, C., Brennan, A., & Horan, B. (2016). The multi-year cumulative effects of alternative stocking rate and grazing management practices on pasture productivity and utilization efficiency. Journal of dairy science, 99(5), 3784-3797.

Pereira, L. E. T., Paiva, A. J., Geremia, E. V., & Silva, S. C. (2015). Regrowth patterns of elephant grass (Pennisetum purpureum Schum) subjected to strategies of intermittent stocking management. Grass and Forage Science, 70(1), 195-204.

Roche, J. R., Ledgard, S. F., Sprosen, M. S., Lindsey, S. B., Penno, J. W., Horan, B., & Macdonald, K. A. (2016). Increased stocking rate and associated strategic dry-off decision rules reduced the amount of nitrate-N leached under grazing. Journal of dairy science, 99(7), 5916-5925.

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