What are the primary data sources used in category management?

Sales data is a primary source in category management because it provides insights into consumer purchasing behaviors, trends, and preferences. This information is critical for understanding which products are performing well, identifying seasonal trends, and analyzing the overall sales performance of a category. By examining sales data, category managers can make informed decisions about inventory levels, promotions, pricing strategies, and product assortments to optimize performance and meet consumer demand.

While demographic information can be important for understanding the target market, and retail pricing is essential for competitive analysis, sales data gives a more direct view of how a category is actually performing in the marketplace. Product colors are typically not relevant to the overarching strategic decisions made in category management and are more of a tactical consideration.