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    Assortment Planning Process

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    Musicvilla
    The document discusses assortment planning in retail. It covers selecting the appropriate breadth and depth of product categories and items to offer. A retailer must choose a mix of manufacturer, private, and generic brands. They must also determine the right balance of variety, assortment of SKUs within categories, and product availability to meet demand. Factors like store layout, corporate strategy, inventory levels, and demand fluctuations influence these decisions. Retailers may pursue wide and deep, wide and shallow, narrow and deep, or narrow and shallow assortment strategies.

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    Assortment Planning Process

    Uploaded by

    Musicvilla
    274 views21 pages
    The document discusses assortment planning in retail. It covers selecting the appropriate breadth and depth of product categories and items to offer. A retailer must choose a mix of manufacturer, private, and generic brands. They must also determine the right balance of variety, assortment of SKUs within categories, and product availability to meet demand. Factors like store layout, corporate strategy, inventory levels, and demand fluctuations influence these decisions. Retailers may pursue wide and deep, wide and shallow, narrow and deep, or narrow and shallow assortment strategies.

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    The document discusses assortment planning in retail. It covers selecting the appropriate breadth and depth of product categories and items to offer. A retailer must choose a mix of manufacturer, private, and generic brands. They must also determine the right balance of variety, assortment of SKUs within categories, and product availability to meet demand. Factors like store layout, corporate strategy, inventory levels, and demand fluctuations influence these decisions. Retailers may pursue wide and deep, wide and shallow, narrow and deep, or narrow and shallow assortment strategies.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    274 views21 pages

    Assortment Planning Process

    Uploaded by

    Musicvilla
    The document discusses assortment planning in retail. It covers selecting the appropriate breadth and depth of product categories and items to offer. A retailer must choose a mix of manufacturer, private, and generic brands. They must also determine the right balance of variety, assortment of SKUs within categories, and product availability to meet demand. Factors like store layout, corporate strategy, inventory levels, and demand fluctuations influence these decisions. Retailers may pursue wide and deep, wide and shallow, narrow and deep, or narrow and shallow assortment strategies.

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    Assortment Planning

    • Assortment is the selection of merchandise a


    retailer carries. Includes breadth of the product
    categories and the variety within each category.

    • Need to choose quality of the merchandise-


    expensive/moderately priced/inexpensive
    items.
    Brands
    • As a part of assortment planning, retailer chooses a proper mix
    of manufacturer, private and generic brands.

    • Manufacturer brands are produced and controlled by mfgs.


    Well known, presold by advts, represent max quality to
    consumers. Eg Coke, Sony etc

    • Private /dealer/store brands: Names designated by retailers,


    more profitable, better controlled ,not sold by competing
    retailers ,less expensive and may lead to loyalty.

    • Generic brands: Form of private brands have plain packages


    ,secondary shelf locations etc
    Depth & Breadth of merchandise
    MENSWEAR DEPARTMENT
     

      
    PRODUCT LINE TROUSERS ACCESSORIES
    SHIRTS

    BREADTH
    ZODIAC VAN HEUSEN LOUIS PHILLIPPE ARROW

    DEPTH
    STYLES COLOURS SIZES
    Assortment Planning Process
    • Merchandise
    Assortment Planning
    is a trade off between:
    • Variety
    • Assortment
    • Product Availability
    Assortment Planning Process
    • Variety: It refers to the
    number of different
    categories of
    merchandise within a
    store or department.
    Assortment Planning Process
    • Assortment: It refers
    to the number of
    SKUs within a
    category.
    Assortment Planning Process
    • Product Availability:
    It refers to the
    percentage of demand
    for a particular SKU.
    Assortment Planning Process
    • The Retailer works out
    on the trade off
    between variety,
    assortment and
    product availability
    depending upon the
    particular marketing
    strategy.
    Assortment Planning Process
    The Retail Strategy is
    worked out keeping
    the following aspects
    in mind: -
    • 1. The particular target
    market towards which
    they are committing
    their resources.
    Assortment Planning Process
    • 2. The type of retail
    offering which the
    retailer plans to use in
    order to meet the
    target market’s needs.
    • 3. The bases upon
    which the retailer will
    attempt to build up
    competitive
    advantage.
    Factors affecting Variety and
    Assortment
    • Physical characteristics
    and layout of the store
    and internet site.
    • Workout a balance
    between too much
    versus too little
    assortment.
    • Work at profitable mix
    of products.
    • Corporate strategy
    towards assortment.
    Factors affecting Product
    Availability
    1. Work out for a
    trade off between
    inventory
    investment and
    product availability.
    2. Plan sufficient
    back up of stock to
    meet each SKU’s
    stock demand.
    Factors affecting Product
    Availability
    SKU’s stock demand
    depends upon:
    • Product availability
    the retailer wishes
    to provide.
    • The fluctuations in
    demand.
    Factors affecting Product
    Availability
    • Lead time for the
    vendor.
    • Fluctuations in lead
    time.
    • The vendor’s
    product availability
    also affects the
    retailer’s back up
    stock.
    RETAIL ASSORTMENT
    STRATEGIES
    Wide & Deep : (many product lines & large
    variety in each)
    Wide & Shallow : (many product lines &
    limited variety in each)
    Narrow &Deep: (few product lines & large
    variety in each)
    Narrow &Shallow: (few product lines & few
    variety in each)
    Shotgun Merchandising
    • Retailers adopt marketing strategies like
    shotgun merchandising and rifle
    merchandising in order to cope with the
    dynamics of the MARKET.
    • A retailer adopting shotgun merchandising
    caters to a variety of market segments by
    expanding its product lines either by
    including a product item or product lines.
    Rifle Merchandising
    A retailer adopting rifle merchandising caters
    • to a specific market segment
    • with a specific product mix, either by
    following a market positioning strategy or a
    multiplex distribution strategy.

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