Content
- Width of assortment: definition and types
- Advantages and disadvantages of a wide assortment
- Indicators of product assortment width
- Optimal assortment width: how to determine
Width of assortment: definition and types
The width of assortment is an indicator that defines the number of product categories, subcategories, or individual product names presented in a store or by a manufacturer. This parameter allows for the assessment of the diversity of products available to consumers. For example, the catalog of the "Perekrestok" chain clearly demonstrates a wide assortment, including categories such as vegetables, fruits, pasta, spices, juices, and baked goods. Within each of these categories, buyers can choose from many options, such as different types of fish: frozen, chilled, or smoked.
There are two main types of assortment width: general and group. General width represents the total number of all product names available for sale. For example, a shoe store may have various categories: shoes, sandals, boots, and so on. General width includes all models in these categories, demonstrating the diversity of the assortment. Group width, on the other hand, focuses on the number of product groups rather than specific names. For instance, in the "coffee" category, one can identify subcategories: whole beans, ground, instant, etc. This helps to understand how diverse the assortment is and which types of products may be absent.
Advantages and disadvantages of a wide assortment
One of the key tasks of a business is to create a balanced assortment that has neither an excess nor a shortage of products. A wide assortment brings many advantages:
- Expansion of target audience: The diversity of product groups allows attracting customers with various needs. For example, in response to the growing interest in a healthy lifestyle, the brand "Prostokvashino" added lactose-free milk to its assortment.
- Risk reduction: A wide assortment helps adapt to changes in consumer demand, especially during seasonal periods.
- Increased customer satisfaction: If a buyer can find all the necessary products in one store, it increases their loyalty.
- Increased sales: A wide assortment promotes cross-selling, where customers purchase additional products.
- Competitiveness: A wide selection increases the chances of meeting the needs of various customers.
However, having a large number of products also leads to certain challenges:
- Increased costs for production and inventory management;
- The need for additional investments in product development and launch;
- More retail and warehouse space that requires maintenance;
- Increased logistics costs.
Indicators of product assortment width
To analyze the width of the assortment, indicators such as actual width, base width, and width ratio are used. Actual width reflects the current state of the assortment and shows the actual number of product groups. Base width serves as a standard for marketing when planning. It may reflect the maximum possible number of product groups in the market.
The width ratio is calculated using the formula:
Width Ratio = Actual Width / Base Width * 100%
For example, if the assortment of the "Cheese" store includes 350 groups, and the base width is 500, then the width ratio would be 70%. This means that the current assortment is 70% in line with the desired width.
Optimal assortment width: how to determine
Determining the optimal width of the assortment depends on the format of the retail outlet. For example, a specialized honey store will have a narrow but deep assortment, while a supermarket offers a wide selection of household products. There is no universal formula for calculating optimal width. This indicator is always considered alongside other characteristics: depth, completeness, and sustainability.
Before expanding the assortment, it is important to consider the following aspects:
- Studying the target audience: Understanding the needs and preferences of customers will help shape the optimal assortment.
- Competitor analysis: Identifying in-demand products will help avoid shortages or excesses.
- Trend analysis: Keep an eye on changes in customer preferences and product relevance.
- Alignment with strategy: Assess how new products fit into your brand's overall strategy.
- Resource assessment: Ensure that your company has sufficient funds for expansion.
- Testing: Conduct experiments with the assortment and gather feedback from customers.
Large chains, such as "Magnit," use different formats of retail outlets to optimize the assortment composition based on the specifics of each store. Regular analysis of turnover and testing new assortment matrices allows finding a balance between width and depth of the offering.