Depth of assortment

Content

• Definition of Assortment Depth
• Depth and Width of Assortment
• Types of Product Assortment by Depth
• Why Increase Assortment Depth
• What is More Important: Depth or Width of Assortment
• How to Calculate Assortment Depth

Definition of Assortment Depth

Assortment depth refers to the number of different variations of products within a single category. The greater the depth of the assortment, the higher the chance of meeting the specific needs of a customer. This characteristic is one of the main factors in forming a product offering.

Depth and Width of Assortment

Depth and width are key parameters of an assortment. Width denotes the number of product categories, while depth shows how varied these categories are filled.

For example, shower gel, scrub, and body lotion belong to different product categories, which determines the width of the assortment. At the same time, various options of these products by composition, volume, brand, scent, or flavor form the depth of the assortment.

Hypermarkets can boast an extensive assortment, offering tens of thousands of product categories—from fresh bread to motor oil. In contrast, specialized stores, such as a bag shop, have a narrower selection but can offer many models within each category, providing a deep assortment.

Types of Product Assortment by Depth

Product assortment can be divided into two types by depth:

• Varietal Assortment: various variations of a single product, such as orange juice in different packaging and with different additives.
• Brand Assortment: identical products from different manufacturers, such as juices of various brands.

For milk chocolate, varietal depth lies in the variety of flavors, while brand depth is in the number of brands available on the shelf.

Why Increase Assortment Depth

It is important for manufacturers and sellers to understand how to develop the assortment. This decision depends on the chosen business strategy. A wide assortment may attract more potential customers, while a deep assortment allows for meeting the needs of the most demanding buyers. Deepening the assortment helps solve the following tasks:

• Attracting Different Segments of Customers: introducing budget and premium versions, unique products, and various characteristics.
• Increasing Customer Satisfaction: in a wide assortment, everyone can find the product they need.
• Increasing Sales Volume: expanding the product line retains the audience and encourages the purchase of new flavors.
• Enhancing Customer Loyalty: having the necessary product encourages customers to return to the store.
• Strengthening Brand Image: having rare and specialized products highlights the professionalism of the company.

For example, in 2023, the company "Tasty and Point" introduced a milkshake, which contributed to a 10% increase in sales.

What is More Important: Depth or Width of Assortment

When a business forms its assortment, it focuses on the format of the enterprise, market conditions, and available resources, including retail space and production capacity. Assortment depth is particularly important for specialized stores, where customers expect to see a wide selection of goods.

For example, the online store "VeloDrive" offers over 1000 models of bicycles, attracting cycling enthusiasts. In contrast, hypermarkets strive to provide a wide assortment so that customers can find everything they need.

Manufacturers and sellers must find a balance between meeting customer needs and managing the assortment. To achieve this, it is important to conduct market research, analyzing competitor offerings and consumer expectations.

How to Calculate Assortment Depth

The assortment depth ratio is a metric that reflects the variety of products in a single category. The formula for calculation is as follows:

Depth Ratio = Actual Depth / Base Depth * 100%

Where:

• Actual Depth: the number of available product options in the category.
• Base Depth: the maximum possible number of products in this category on the market.

For example, if a store has 5 brands of liquid soap out of a total of 20 brands available in the market, the depth ratio would be 25%. This indicator can be used to compare with competitors and analyze its impact on sales.