Hierarchy Product Listing : What is the best practice

A page with all the Categories with images and title. On clicking the image it redirects to subcategories with images and title. And on clicking subcategories it goes to all the listing of products under that subcategory.

What is the best way to accomplish this?

Challenges  faced while trying with category and department:

1. Could not find a control to navigate b/w categories>subcategories and products.

2. Could not associate image or some custom fields.