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 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 for the demographic. You can 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.
category manager jobsaverage salary of a category manager
In Australia, a category manager earns a median salary of $125,000 per year. When you are starting, your entry-level salary starts at $110,000 annually. However, as you climb the ranks and build your experience, the remuneration package increases to $140,000 per year. Some employers also pay annual bonuses and contribute to additional medical costs. Non-monetary benefits include paid holidays and annual sick leave.
how to increase your salary as a category manager
As a category manager, your skills and qualifications determine your remuneration. You can demand a higher salary when you have additional skills or qualifications like a master's degree. Your experience level is also important in determining your earnings. Entry-level experience lowers your salary prospects, but if you have taken up similar roles in the past, your hands-on experience is valuable. Employers are willing to pay more for category managers with additional experience.
The company size and type also influence your earning potential. Your remuneration package and benefits are attractive when you work for a multinational company. Large companies, such as those in mineral production, have more extensive resources and can afford to pay higher salaries. The complexity of the role in large organisations also warrants better remuneration than smaller companies.
Want to know what you will earn as a category manager? Check out what you are worth with our salary checker.
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 range is provided to consumers.
- supply category manager: when 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 products.
working as a category manager
As a category manager, you help a business improve sales and revenue from a particular product category. The role requires excellent business acumen and strategic thinking to promote the success of a product category.
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category manager job description
As a category manager, you are involved in various business activities, including:
- meeting with stakeholders 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 in-store display tactics, pricing, stock control and promotions. You also liaise with the executive management to ensure 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 opportunities: as a category manager, it's important to identify expansion opportunities for your employer. That involves reviewing market performance reports and comparing the data with sales in 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 can 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 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 studying the shelf spaces in the store.
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who are your colleagues?
Depending on your employer and the industry you work in, your colleagues might include sales managers, marketing managers and product managers. You might also be working in close proximity to programme managers, operations managers and marketing executives, as well as other specialists that could include, but not be limited to, procurement managers, project managers and customer service administrators.
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work schedule
Category managers work regular office hours on full-time schedules from 9 am to 5 pm. Sometimes, you work evenings or weekends to complete office work or create new product range plans. Some meetings with stakeholders take place during evenings and weekends. You will attend trade shows to familiarise yourself with competitors' products. Some employers have flexible work schedules like part-time options and contracts. The role also involves travelling to meet suppliers and negotiate prices with retailers.
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job outlook
Working as a category manager gives you a well-defined career path. You can work towards becoming a senior category manager from an 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 managers.
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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.
category manager education and skills
The following educational qualifications are crucial for a category manager:
- bachelor's degree: an undergraduate degree is not always a requirement, but most employers prefer candidates with a bachelor's degree. You can pursue an undergraduate course in marketing, business management or commerce. The bachelor's degree prepares you for your role by imparting knowledge of consumer behaviour, marketing strategy and business statistics. The bachelors degrees desired for this role are: bachelor of business, bachelor of commerce, or bachelor of business administration.
- management experience: you should have prior experience in a specific field to be a category manager. Begin your career with internships or entry-level roles in marketing and sales to develop your marketing skills. It is also crucial to gain management experience. Taking on managerial positions in marketing or sales boosts your employability and prepares you for the complexities of the category manager role.
category manager skills and competencies
Some of the qualities of a category manager include:
- strategic thinking: as a category manager, strategic thinking is critical in developing and implementing plans. You are responsible for creating strategies that streamline marketing processes to improve sales. Strategic thinking helps you choose the best solutions that produce tangible results for organisations.
- market research skills: as a category manager, you should understand your consumers to develop marketing approaches that resonate with them. Your research skills will help you analyse the market and find better ways to promote your products.
- management skills: as a category manager, you should have effective leadership and management skills to manage your teams. Your leadership skills are vital for inspiring and motivating workers, while management skills help you organise the workflows, delegate tasks and conduct performance reviews.
- computer skills: as a category manager, computer skills come in handy since you will use multiple software to run your department. For instance, you use digital marketing tools, online communication and promotional tools and analytics software.
FAQs about working as a category manager
Here are the most asked questions about working as a category manager:
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what does a category manager do?
A category manager is responsible for promoting and improving the sales of a particular product category. They research the market to understand customers' needs and the retail environment. From the research, they can decide on the pricing and marketing strategies to improve sales and revenue from a product line. They also communicate with product managers to make adjustments to the products.
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what is a good category manager?
A good category manager should have extensive experience in sales to understand consumer needs and find exciting ways to reach out to them. As a category manager, it is vital to have a commercial mindset and excellent communication skills to build a strategic relationship with suppliers and increase sales.
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what do category managers earn?
Category managers earn an average salary of $125,000 per year. When you are new to the role, your starting salary is $110,000 annually. However, experienced category managers earn over $140,000 per year. The remuneration package usually depends on your experience level and skills. Sometimes, the location and industry also influence your salary.
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is being a category manager a good job?
A category manager grows a company's product line by improving sales and customer satisfaction in a specific product line. Being a category manager is a fulfilling career since you contribute to a company's success and help achieve strategic goals. You also collaborate and interact with people from various business sectors.
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what are the qualifications of a category manager?
You should have a bachelor's degree to become a category manager. The degree course improves your knowledge of consumer trends, category sales and marketing principles. You may also pursue a master's in a relevant field to enhance your career prospects.
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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 category manager job offers. Or simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here.
