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What is Category Analysis?

Category analysis is the method of assessing product categories to understand better the many elements that influence the demand for a product line. Category analysis entails providing an outline of product categories before delving further into each to produce a complete report on each product category. It is carried out by marketers to better position and advertise their items.

Category analysis advances the category manager's understanding of the attributes of demand for the category and the supply market for the category – a prerequisite to effective category management

Category analysis includes competitor and user experience assessment. Overall, it provides brand managers and senior customer insights managers with a comprehensive grasp of what makes the brand distinctive and remarkable and how the marketplace should place the company in the market to generate optimum profitability and growth.

What is the Significance of Category Analysis?  

Category analysis is necessary to dig deeper into specific parts, such as the company, marketplaces, customer perception, consumer interaction, trends, and rivals, to generate findings that will aid in establishing a brand's primary concerns.

Frequently, user experience officers, marketing teams, and other senior management leaders have questions like:

  • Which product do categories contribute the most to total sales?
  • What product categories are underperforming?
  • How does our product compare to others on the market?
  • What are the current market trends in this product category?
  • Which geographical areas have the most margins?

Senior management should view this graphically, so they can immediately comprehend and identify concerns.


Category analysis is more than simply a technique for determining how well a category is functioning. It also develops the stakeholder's comprehensive understanding of demand profile, supply chain, suppliers and supply market characteristics of any particular category.

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