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Case Study: Strategic Consulting to Transform Category Management in Home Furnishings and Décor


Home Furnishings and Décor Company

Project Scope

Category Transformation, Category Management Consulting

category management consulting


The Home Furnishings and Décor Company is a pioneering entity in the industry, known for designing, manufacturing, and selling a wide range of indoor and outdoor furniture and accessories. With a product portfolio encompassing three distinct home décor brands – eclectic furnishings, outdoor furniture, and pillows – the company faced the challenge of managing their product categories more effectively to not only sustain but enhance their market position. They turned to Bluestock Advisors to develop a strategy for transforming their category management processes, aiming to elevate the company to a higher market level.


During the initial discovery phase, Bluestock Advisors identified several critical issues impeding the company’s growth. The analysis revealed significant gaps in structure and understanding regarding category health and performance. Without a consistent process for creating assortments and defining product hierarchies, the company struggled with inefficiencies and a lack of direction. Additionally, the advisors discovered an absence of a robust framework for assessing business operations, from day-to-day tactical activities to long-term strategic planning. These gaps highlighted the need for a comprehensive overhaul of the company’s category management practices.


In response to these findings, Bluestock Advisors devised a multi-pronged solution aimed at establishing a structured and efficient category management system. The first step involved creating a hierarchical category structure for all products. This new structure provided a clear framework for organizing products into overarching categories and corresponding sub-categories, ensuring a logical and manageable assortment.

To ensure effective management of these categories, Bluestock Advisors identified and appointed leaders to oversee each category. These Category Managers were assigned clear responsibilities, with a defined scope of work to ensure accountability and ownership. This step eliminated the previous overlap in responsibilities and clarified the ownership of the product assortment.

Another critical component of the solution was the identification and implementation of Key Performance Indicators (KPIs) to track the health and performance of each category and sub-category. These KPIs were designed to monitor both day-to-day operations and strategic forecasting, focusing on essential metrics such as sales, profitability, and inventory levels. The establishment of these KPIs provided a clear and measurable way to assess performance and guide decision-making.

To facilitate effective communication and transparency, Bluestock Advisors created a comprehensive reporting system. This system enabled cross-functional communication, ensuring that all departments were aligned and informed about category performance and strategic goals. The reporting system included a tool kit for Category Managers, which comprised a Playbook, Category Status Report, and Vendor Scorecard. These tools provided visibility and accountability, helping to prevent unexpected issues such as margin discrepancies or inventory excesses.


The implementation of Bluestock Advisors' solutions led to significant improvements in the company’s category management processes. The establishment of a hierarchical category structure brought clarity and organization to the product assortment, making it easier to manage and navigate. By assigning Category Managers to lead each category, the company created clear lines of responsibility and ownership, which streamlined operations and enhanced accountability.

The introduction of well-defined KPIs enabled the company to focus on critical metrics such as sales, profitability, and inventory management. This focus allowed for more accurate tracking and measurement of performance, facilitating better strategic planning and day-to-day decision-making. The comprehensive reporting system ensured that all relevant stakeholders were informed and aligned, promoting transparency and cross-functional collaboration.

The tool kit provided to Category Managers proved to be an invaluable resource, offering a structured approach to category management and ensuring that all managers had the necessary tools to perform their roles effectively. The Playbook, Category Status Report, and Vendor Scorecard provided detailed guidance and insights, reducing the likelihood of unexpected issues and enhancing overall performance.

strategic consulting for category management

Consulting for Transforming Category Management

In conclusion, Bluestock Advisors successfully transformed the Home Furnishings and Décor Company’s category management processes, positioning the company for sustained growth and higher market competitiveness. Through a combination of structured hierarchy, clear responsibilities, focused KPIs, and effective reporting, the company now operates with greater efficiency and strategic alignment. This Client Story demonstrates the importance of robust category management in driving business success and highlights the transformative impact of strategic consulting.


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