FREE FULL TEXT (PDF)
 DOI: http://doi.org/10.31617/visnik.knute.2019(127)05

UDC 658.628

MYKYTENKO Nelya,
Candidate of Economic Sciences, Associate Professor, Associate Professor at the Department of Management,
Kyiv National University of Trade and Economics
19, Kyoto str., Kyiv, 02156, Ukraine

Email: nvm17@ukr.net
ORCID ID: https://orcid.org/0000-0002-5694-0531

PRODUCT CATEGORIES IN THE TRADE PROCESS MANAGEMENT SYSTEM

 
Background. Today, the retail industry must work to meet the rapidly changing consu­mer needs in order to win the consumer convincingly and create the necessary conditions to ensure his loyalty to the enterprise. Nowadays, the concept of categorical management is beco­ming such an advanced strategic maneuver in retail trade, which is becoming more and more active in the domestic retail trade.
Analysis of recent studies and publication shas shown that despite the high importance of researches conducted by categorical management scientists, the scientific literature does not sufficiently cover methodological approaches to one of the key processes of categorical mana­gement –the selection of product categories, as well as the mechanism of its implementation.
The aim of the article is to define the essence of the concept of "commodity cate­gory", to identify the mechanism and to generalize approaches to the selection of commo­dity categories, as well as to formulate recommendations for its use at retailers.
Materials and methods. The study uses methods of cause and effect analysis and syn­the­sis, deduction and induction, systematization and generalization, as well as a systematic approach.
Results. The general concept of categorical management is described. The author defines the concept of "product category" with an emphasis on the orientation of the category manager to meet a specific consumer need and the associativity in the presentation of the consumer goods of the same category as identical and those that are inextricably linked and can serve as an alternative to his choice. The scheme of the process of product categories selection in accordance with the study of consumer logic of choice of goods is offered. A critical analysis of the existing methodological approaches to the process of category formation was conducted, which resulted in the substantiation of its own approach and the principles of product category separation based on traditional and creative concepts. The table below shows examples of application of the author’s approach at retailers in various formats.
Conclusion. As a result of a critical analysis of the points of view existing in the scientific literature, it has been determined that a product category is a group of goods, separated from the range, that combines the ability to satisfy a particular primary consumer need and which are perceived by the consumer as identical, interconnected and interchan­geable. The methodology of the process of selection of product categories is offered through awareness of consumer needs and development of basic, alternative and associative ways of meeting consumer needs.
When forming categories of goods, it is recommended to be guided by five basic prin­ciples (commonality of production method, functional and practical benefits for the consumer, consumer logic, consumer preferences, periodic and consumer demand).
Keywords: categorical management, product category, consumer, consumer needs, retail trade enterprise.

REFERENCES

1. Walton, Sam,& Huey, John (1993). Made in America. Wyd-wo Bantam Doubleday Dell Publishing Group Inc [in English].
2. Sait "Ukray’nsky’e ry’tejlery – o rezul’tatax vnedreny’ya kategory’jnogo menedzh­menta v svoy’x setyax" [Ukrainian retailers –on the results of introducing categorical management in their networks]. www.trademaster.ua. Retrieved from: https://trademaster.ua/articles/312337 [in Russian].
3. Bilyavs’ka, Yu. V. (2017). Osobly’vosti ta tendenciyi kategorijnogo menedzhmentu pid­pry’yemstv torgivli [Features and tendencies of categorical management of trade enterprises].Zbirny’k naukovy’x pracz’ "Problemy’ sy’stemnogo pidxodu v ekonomici"–collection of scien­tific papers "Problems of systematic approach in economics", 4 (60), (pp. 81-88) [in Ukrainian].
4. Bilyavs’ka, Yu. V. (2018). Kategorijny’j menedzhment: s’ogodennya, postulaty’ ta filo­sofiya[Categorical management: present time, postulates and philosophy]. Logy’sty’ka problemы y’ resheny’y– Logistics problems and solutions,2 (75), 16-23 [in Ukrainian].
5. Sait"DurbаnМ. (2007) DrіvіngSиstаіnаblе GrоwthТhrоиghСаtеgоrу Маnаgеmеnt". Retrieved from:  www.каmсіtу.соm [in English].
6. Zwanka, R. J. (2016). Principles of Category Management. Wyd-wo Createspace Inde­pendent Pub [in English].
7. Y’l’chenko, N. B. (2018). Novye podxodyk kategory’jnomu menedzhmentu[New approaches to categorical management]. Logy’sty’ka problemyy’ resheny’ya– Logisticsproblems and solutions,2 (75), 26-29 [in Russian].
8. Sait"Ky’sel’ov V. M., Nikolayeva M. A. Kategorijny’j menedzhment[Categorical mana­gement].www.academia.edu.Retrieved from: https://www.academia.edu/ 30185815/Kategory’jny’j_menedzhment [in Russian].
9. Kreshhenko, O. (2014). Tovarnі zapasy yak ob’ekt upravlinn’ya v kategorijnomu mene­dzhmenti[Inventory as a management object in categorical management]. Aktual’ni prob­lemy ekonomiky– Actual problems of the economy, 2 (152), 492-500. [in Ukrainian].
10. My’rgorodckaya, O. N. (2014). Kategory’jnyj menedzhment kak covremennaya marke­tyngovaya texnology’ya upravleny’ya tovarnym accorty’mentom [Categorical manage­ment as a modern marketing technology for product range management]. Koncept–Concept,17,  36-40 [in Russian].
11. O’Brien, J. (2015). Category Management in Purchasing. A Strategic Approach to Maxi­mizeBusiness Profitability.Wyd-wo McGraw-Hill Contemporary [in English].
12. Popovichenko, I. (2014). Analiz vozmozhnostej vnedreniya kategorijnogo menedzhmentav deyatel’nost’ proizvodstvenno-torgovyh predpriyatij [Analysis of the possibilities of introducing categorical management in the activities of production and trading enter­prises]. Evropejs’kij vektor ekonomіchnogo rozvitku – European vector of economic development, 2 (17), 185-192 [in Russian].
13. Popovichenko, I. V. (2018). Problemy ukrainskogo kategorijnogo menedzhmenta oprede­lyayutsya sostoyaniem otechestvennoj ekonomiki [The problems of Ukrainian categorical management are determined by the state of the domestic economy]. Logistika problemy i resheniya – Logistics: problems and solutions,  2 (75), 34-38 [in Russian].
14. Sysoeva, S. V. (2015). Kategory’jnyj menedzhment. Kurs upravleny’ya assortymentom v rozny’ce[Categorical management. Retail assortment management course]. SPb.: Wyd-wo Py’ter [in Russian].
15. Snegy’reva V. (2007). Rozny’chnyj magazy’n. Upravleny’e assorty’mentom po Tovar­nym kategory’yam[Retail store. Assortment management by product categories]. SPb.: Wyd-wo Py’te [in Russian].