I have taken some screenshots which should be preety self explanatory. Please check them out in order to understand our basic objective. I bet, you will find it really simple!

Okay, to take a peek, this is what we are going to do:

So, let’s see how it can be done. First of all, we need to make a LIST of options that can be selected from the drop down cell. To do that, write down all the options that you want to insert into another sheet and give it a Name. Confused? Check the following image and you will get it quick! You just need to Select All the options and change the text in the Excel Name Box, say we have selected A1:A4 and gave the name cat1.

Once we have given a name to our option List, we can insert it to the cell where it is required. To do that select the cells where you want to insert the Drop Down box and go to Data -> Validation in the menu bar.

The Data Validation dialog box will up. You need to select List in the Allow: field and then enter the name of the List that you have created above (cat1) after an equal to sign, just the way shown below. Click OK and there you go!!!!

I hope it was easy to understand. Please comment if you have any trouble in implementing it and I will sure reply to you. Have a great day.