Content
- Definition of Assortment
- Types of Assortment
- Key Indicators of Assortment
- Methods of Forming Assortment
- Evaluation of Assortment Effectiveness
Definition of Assortment
Assortment is a broad list of goods and services that a company offers to its customers. It can range from homogeneous to diverse offerings, and can also be narrow or wide, seasonal or specialized. The right choice of assortment contributes to the effective attraction of the target audience and increases business profitability. For example, a standard supermarket presents a multitude of product categories, such as food, household chemicals, and home goods. The entire range of presented products forms a unique assortment of a particular retail outlet.
The online store "Raut Market" offers not only food products but also hygiene products, cosmetics, and household chemicals, thus expanding its assortment.
Types of Assortment
Assortment can be classified according to several criteria:
- Simple Assortment: Includes a limited number of frequently purchased goods, such as in a corner shop.
- Complex Assortment: Combines a multitude of product names and subgroups, allowing for the consideration of diverse customer needs.
- Species Assortment: Contains products that satisfy similar needs, such as clothing for men, women, and children.
- Complementary Assortment: Includes products that supplement the main product, such as bookmarks and covers in a bookstore.
- Brand Assortment: Contains several types of products from one brand, such as a tech store offering only Samsung products.
- Mixed Assortment: Combines food and non-food items, as seen in a supermarket.
Key Indicators of Assortment
Key indicators of assortment help evaluate the quality of the product offering:
- Breadth: Determines the total number of product groups and subgroups. A wide assortment increases the company's competitiveness.
- Depth: The number of items within each group. A deep assortment allows customers to choose a product that meets their needs.
- Saturation: Reflects the total number of all product items, taking into account the breadth and depth of the assortment. A saturated assortment provides a wide choice for various market segments.
Methods of Forming Assortment
Forming an assortment is a continuous process that requires regular review. Below are several popular methods:
- Demand Analysis Method: Collecting information about customer needs through surveys and sales analysis.
- Market Segmentation Method: Forming groups of consumers based on various characteristics and determining the product range for each group.
- Competitive Analysis Method: Studying competitors' offerings to identify unique products.
- Product Life Cycle Method: Forming the offering based on new products and popular items.
- Inventory Management Method: Analyzing stock levels to optimize the assortment.
- Feedback Method: Collecting customer reviews to make changes to the assortment.
Evaluation of Assortment Effectiveness
Evaluating the effectiveness of the assortment helps understand how well the selected products align with business goals. To do this, companies can use the following methods:
- Analysis of sales volume for each item to identify popular products.
- Assessment of product profitability to identify the most profitable items.
- Study of inventory turnover to determine sales velocity.
- Evaluation of customer demand and satisfaction levels.
- Comparison with competitors to identify strengths and weaknesses of the assortment.
- Checking the compliance of sales indicators with set KPIs.
Analytical methods such as ABC analysis help identify the most profitable products and focus on their sales to maximize revenue. There are also other methods that assist companies in adapting to changing market conditions and consumer preferences.