What is assortment Marketing?
According to Investopedia, an assortment is a collection of goods or services that a business provides to a consumer. This concept usually deals with the number of products carried as well as the variety of products sold.
What is assortment optimization?
Assortment optimization refers to the problem of selecting a set of products to offer to a group of customers to maximize the revenue that is realized when customers make purchases according to their preferences. Assortment affects costs because it drives inventory decisions.
What is a merchandising strategy?
Merchandising Strategy: Merchandising strategy involves the tactics (or business processes) that contribute to the sale of goods and services to the customer for profit. A sound retail strategy involves developing a desirable retail merchandise mix of products that add unique customer value.
What are the types of assortment?
Types of Assortment Strategies
- Wide assortment. A wide assortment strategy is used when retailers aim to offer a lot of different product lines or categories, but with lesser depth in each category.
- Deep assortment.
- Scrambled assortment.
- Localized assortment.
- Mass-market assortment.
How do I make an assortment plan?
Actions To Consider For Assortment Planning
- Identify Consumer Decision Trees And Customer Segments.
- Develop A Store Clustering Strategy.
- Shopper demand variation among categories.
- The store format.
- Align Internally Around Category Roles.
- Locate Cross Merchandising Opportunities To Increase Sales.
What is assortment in FMCG?
Simply put, your product assortment is the mix of products you choose to maximize your chances of selling. Some products naturally tend to sell more, such as FMCG goods, because everyone needs them. Others, such as jewelry items, move more slowly. However, they tend to have higher profit margins.
What is variety and assortment?
Difference between variety and assortment can be described in a way that variety is the different types of the products or the categories of the products that the retailer displays for selling to the customers, while assortment refers to the selection of the products and planning to increase the sales of those products …
How do I create a product assortment?
How is an effective assortment strategy developed?
- Give similar stores similar assortments.
- Build assortments around product families.
- Account for changing consumer preferences.
- Use specialized tools for assortment planning.
- Analyze your data carefully.
What is assortment planning process?
Assortment planning in retail is the process of selecting the products that a retailer wants to sell during a particular period to maximize profitability. In other words, it means that retailers decide what merchandise they should buy and market to their customers.
When do you use a wide assortment strategy?
A wide assortment strategy is used when retailers aim to offer a lot of different product lines or categories, but with lesser depth in each category. It aims to provide more variety in the types of product lines offered but does not provide a high number of products in each product line.
What should be included in a product assortment strategy?
Your product assortment strategy needs to be a clever mix of these two kinds of items to achieve maximum profits over time. All sales on the planet cater to one demand- need. Even before you start making a list of products that you think might bring in sales, do you know what the consumer wants?
How to optimize assortment based on customer buying patterns?
5 Simple Strategies to Optimize Your Assortment Based on Customer Buying Patterns: Items that have low-frequency/ high correlation are important to detect. These are troublemaker SKUs. As companies goes though SKU rationalization projects, these items often end up on the chopping block, only to brought back again because they caused lost sales.
What makes a retailer have a deep assortment?
Deep assortment – In deep assortment, a retailer stocks many varieties of a single of limited products. Deep assortments make retailers super specialist and it minimizes any space for other types of products. Deep assortments may involve carrying a large variety of colors, add-ons and the like.