The most frequently asked question during our workshops is “How to build product categories correctly?”. I would like to start with the point that there is no right or wrong construction of product categories.
There can be a competent and reasonable construction of product categories.
Let’s take the “Non Pharma” product group (not drugs).
Subgroup of goods “Cosmetics”.
Product category “Natural Organic Beauty”.
We will place products according to one of the criteria – 100% natural ingredients for care – to this category of goods.
What does “100% natural” mean?
100% natural are about such products that are made from natural ingredients that have been grown in the natural conditions, in which even preservatives, flavoring and coloring agents are made from 100% natural ingredients.
Next, we take the subcategory of the product “Skin care” (head, arms, legs, body, etc.).
We select brands in each subcategory to satisfy the buyer (target audience of pharmacies) competently and reasonably (in terms of marketing and profit/margin/income).