Magento - Setup Categories
Categories are classes or things which are related, and have some shared characteristics. The following steps describe how to add categories for the products in Magento.
Step (1) − Login to your Magento Admin Panel.
Step (2) − Go to the Catalog menu and click on the Manage Categories option.
Step (3) − Next you need to fill the fields like Name of the category, Is Active status which is set to Yes/No and Description of the category.
Step (4) − Click on Save Category button and your category is ready to have the products added to it.