How to work with Product Catalogs that have multiple levels

I'm having difficulty understanding how to go about setting up a catalog site with multiple levels in the hierarchy. For example, the standard walkthroughs will display product categories and products. When the product category page is viewed, it displays
a list of products. That's fine.
I would like to have categories, sub-categories, and products. For example:
1. Bicycles
  a. Road Bikes
  b. Mountain Bikes
2. Clothing
  a. shirts
  b. shorts
The top level landing page should list all categories. Clicking on a category should take the user to a page that lists all sub-categories for that category. How are these landing pages created? It's simple to display the list of products in a sub-category,
as that's just a content search. But how do I generate a list of subcategories (or categories) dynamically, without having to manually create a page for each one?
Also, each category / subcategory should have it's own metadata, such as description, contact info, etc.
Thanks,
Mike G.

after you connect to a product catalog in site settings->manage catalog connections in a publishing site, page layouts and pages will created automatically for you in the publishing site. for a simple test, you can just leave everything to it's default
value when you connect to a catalog. you can find address for these page created in site settings->term store management tool, click on the term under your site collection group, and open the term-driven pages.
please read what follows for more:
http://blogs.msdn.com/b/justinvoels/archive/2012/09/24/sharepoint-2013-search-driven-publishing-and-cross_2d00_site-collection-publishing-overview.aspx
http://blogs.msdn.com/b/faceted_navigation_in_sharepoint_2013/archive/2012/11/23/configure-faceted-navigation-for-a-product-catalog-in-sharepoint-2013.aspx

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    what is the diff b/n prod cat and prod?
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    Product Assignment
    You assign products manually or automatically to a catalog area, depending on the catalog type. The product ID, product description, and status of all products is displayed, as is the information as to whether the item contains accessories or if it is a configurable product.
    Prerequisites
    You have created products in your product master in SAP CRM under Accounts and Products
    Process
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    Manual Assignment
    You can assign products manually on an individual basis or by copying a catalog area. You tend to choose manual product assignment for marketing-oriented catalogs that are subjected to editorial controls.
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          Copying items from catalog areas
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          You can edit the list of accessories for manually assigned products. The system determines which accessories are maintained for the product in the product master and displays them in the item area of the catalog. You select which accessories should be displayed for the product in the catalog and activate them.
          Manually assigned products can be included or removed from catalog views on an individual basis.
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    The following is true for products assigned to the catalog using product hierarchy transfer:
          Product categories which make up the hierarchies become catalog areas in the catalog.
          Product categories in the product hierarchy must be assigned to the distribution chain to which the target catalog variant is assigned. Otherwise the category is not transferred. The same applies to the items, texts, and documents assigned to the category.
          Items are always active and cannot be individually activated or deactivated.
          Accessories maintained for transferred product in the product master are automatically included and displayed in the catalog.
          Transferred items cannot be individually included in catalog views or removed from them. Instead all items of the hierarchy are always contained in the view.
          Lists of characteristics for transferred categories and items can be automatically created when transferring product hierarchies. The transferred values are included in the item overview of the product catalog.
    how to create a product catalog
    just have a look at this link
    http://help.sap.com/saphelp_crm60/helpdata/en/1c/12b2dc57d644d19ea3a5c4156f904f/frameset.htm
    your query regarding the products you have uploaded from the R3,now as above i said how you maintain and create the product catalog ,you just assign the products uploaded from the R3 to the product cataloag created in CRM.
    more detail info you can see in these links
    http://help.sap.com/saphelp_crm60/helpdata/en/91/be9642e5ef0731e10000000a1550b0/frameset.htm
    http://help.sap.com/saphelp_crm60/helpdata/en/46/27f09d25da5a68e10000000a1553f7/frameset.htm
    http://help.sap.com/saphelp_crm60/helpdata/en/46/037716cfc604a9e10000000a114a6b/frameset.htm
    if you read carefuly what i have said,it is pretty easy to implement ,you will see it yourself
    guess it will help you
    do revert back in case of any doubt
    best regards
    ashish

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