why is product assortment important

Why do we need product assortment?

Product assortment, also known as product or merchandise mix, is the variety of merchandise that a business offers to customers. In the eyes of a customer, this assortment defines a retailer's image and why they shop there. Product assortment will also determine a company's dependence on particular inventory.

What is the goal of assortment planning?

What is the goal of assortment planning? Is to maintain a balanced assortment of merchandise that will meet the needs of as many customers as possible.

What do you mean by product assortment?

Product assortment, sometimes referred to as merchandise mix, refers to the variety of products that a retailer stocks and sells. It's made up of two key components: 1. Product breadth, which is the variety of product lines in a store. Product breadth is all about how wide and diverse an assortment is.

Why is assortment a critical factor to the success of retailing?

It's about looking at what drives cash flow.” When retailers plan assortment, they're planning which products to place and where during that period of time. This is done in a way that will drive the most sales — for example, you'll highlight bathing suits in spring and summer instead of in winter.

What are the key characteristics of an assortment plan?

Assortment planning entails evaluating individual product attributes, including Brand, Size, Style, Colour, Function, Price and Stock Keeping Unit (SKU) performance during selection to address the preferences and needs of your customers.

What is assortment planning process?

Assortment planning is the process of choosing which “assortment” of products to sell during a certain time period, and how to allot those products between different locations and/or sales channels to maximize profits.

How can product assortment be improved?

Industry-leading retailers optimize their in-store and online businesses by taking an effective, five-step approach to developing a comprehensive assortment strategy: Give similar stores similar assortments. Build assortments around product families. Account for changing consumer preferences.

How do you choose product assortment?

The most obvious consideration when creating a product assortment strategy is to determine who you want as your target customer. The products you sell will attract the type of customer you want, and the more detailed your demographic information, the better.

Which of these is a product assortment?

Product assortment is the different types of products that a business makes or a retailer offers for sale. Product assortment consists of the following characteristics: Breadth: The breadth of a company's products relates to the number of product lines a company produces or a retailer carries.

What does assortment mean in retail?

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 give example?

Assortment is defined as a group of things that vary in type. An example of an assortment is a box of chocolates with varying flavors and kinds. noun.

What are the 5 steps in preparing an assortment plan?

Have a look at the following steps.Research and build a plan. ... Store clustering. ... Decide the breadth and depth of assortments. ... Create a visual merchandising plan. ... Double-check and execute the plan. ... Retain your loyal customers. ... Control inventory spending. ... Stand out from competitors.More items...•

What does assortment mean in retail?

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 in supply chain management?

Also called a "product assortment strategy," it is a strategic tool that retailers use to manage and increase sales. The strategy is made up of two major components: The depth of products offered, or how many variations of a particular product a store carries (e.g. how many sizes or flavors of the same product).

What is assortment planning and how does it differ from range planning?

A question we frequently hear is what is the difference between Assortment planning and Merchandise planning. In simple terms, one is the Financial view of the world. The other is translating those financial plans into a framework of the actual product range that will be sold, to achieve those financials.