Formation of an assortment matrix using the method. What is an assortment matrix and why is it needed? Brick by brick

Range exists in any company, regardless of its structure and trade specifics. The assortment needs to be managed, and not left to chance. Otherwise, this huge mass of goods will begin to control us, taking away our resources - working capital, retail and warehouse space and employee time. Products should be introduced into the assortment only with a clear understanding of their place in the category and the task they must perform.

Before we design the assortment and start filling it, it is necessary to create an assortment matrix.

Assortment matrix- this is a complete list of all product items approved for sale in a specific store for a certain period of time, taking into account the requirements of your company’s assortment policy and the specifics of the store’s format and location.

Minimum assortment- a list of product items that must be constantly available in a specific store (or in all stores in the chain) at any time, regardless of the season. This is the core of the range, its basis. It is valid for all stores in the network. Products included in the minimum assortment must be constantly monitored by category managers. A shortage of these goods is unacceptable.

To compile an assortment matrix you need:

1. Determine the store format and its basic concept and positioning (what and how we will sell). Requirements for the format (store area, self-service store or trade over the counter, mini-market, supermarket, discounter or boutique, etc.). What are the specifics of the region or city (city with developed infrastructure, industrial, port city or regional center, regional capital or outskirts). What are the characteristics of the location (a residential area, in the city center, near a busy highway, near a market, etc.).

2. Study consumer demand, segment customers (who will we sell it to, who is our main consumer: age, income level, marital status, education, how they relax, what they buy most often, why they shop in our store, what they want to get, what services are expected from us or competitors). The target segment is the one on which you should focus your marketing efforts. This is the group of customers who purchase most often or the most and bring the most profit to the store. The essence of segmentation is precisely to identify the most interesting and profitable customer groups for us and create an offer for them that best meets the needs of these groups.

3. Study the range of competitors (which competitors are present, what advantages they have, what price level the competitors have, what services they offer, which other networks are still going to “come”).

4. Decide on the goods that will be sold in the store and the price level for these goods. At this stage, it is appropriate to begin selecting suppliers who can meet our expectations regarding prices, product quality and regularity of deliveries.

Based on consumer demand, identify categories, groups and classes of goods. Create a product classifier, highlighting these three levels. This is not difficult to do, since we use fairly general characteristics that unite many products (what it is made of, who it is intended for, how and where we will use it).

• The first level is the product class. The larger the store format, the more levels of division. In some cases, the first (highest) level of the classifier may be a class of goods - for example, “food products” and “non-food products” or “clothing” and “shoes”, i.e., something that, in the buyer’s mind, is united by a common functional purpose. For example, “food products” are what is eaten, and “non-food products” are what are not eaten, “clothing” are what are worn on the body, “shoes” are what are worn on the feet. But in stores of a smaller format or where all goods are homogeneous (for example, a store sells only clothing, and for a specific buyer, say, for young people), distinguishing a class is not necessary.
• The second level is the product group. This is a set of goods united by certain common characteristics: type of product, method of production, etc. (for example, “dairy products”, “bakery products”, “women’s clothing”, “men’s shoes”, “furniture”, “lamps”, "home accessories"). As a rule, in a store of any format this level is present and is often the highest level, below which the product category already goes.
• The third level is the product category. This is a collection of goods that the buyer perceives as similar to each other, or goods that are united by common use. Simply put, a product category is what product the buyer goes to the store for. For milk, kefir and yoghurt (not dairy products). For a tank top, T-shirt and sweater (not knitwear). For shoes, boots and sandals (not shoes). For a vacuum cleaner, washing machine and heater (not for household appliances). Behind the sofa in the living room, desk and bookcase (not behind furniture).

5. Deepen the product classifier by studying each category and highlighting its subcategories (at one or more levels) and product items in each subcategory.

6. Analyze the balance of the assortment by the number of categories and the ratio of product items.

By analyzing the ratio of the roles of all categories that are in the store, we can see how balanced our assortment is in width.

• unique - store image and memorability, impulse purchases.
• The priorities are profitability and attracting a flow of customers.
• basic - high turnover and attracting a flow of customers.
• periodic (seasonal) - updating the assortment, attracting and retaining customers.
• convenient - ensuring a constant flow of customers, complexity of the purchase, convenience for the buyer.

Depending on what goals the category achieves, it will be filled with certain goods - expensive or cheap, new products or goods for bulk purchase. Products in a category must be selected so that they can help the entire category achieve its planned goals (Table 1).

Table 1. Correlation of store goals, category roles and products within a category.

General conclusion: After the final decision that our assortment contains certain categories and product items, a matrix should be drawn up. The result of such work, in fact, will be an assortment matrix containing information about the product and suppliers. This is followed by tactical work on analyzing sales and inventories and keeping the matrix up to date. After analyzing the products within the category, it becomes clear that the introduction and release of a new product item into the assortment must be conscious. It is impossible to introduce products into the assortment without a clear understanding of their place in the category and the task that they must perform. Each product has its own turnover rates, warehouse stock, delivery frequency, etc.

The essence of the network principle of organizing retail trade as a factor in increasing the competitiveness of business, the history of the development of network trade in developed countries and in Russia, the construction of retail trade networks, the organization of management, as well as the specifics of the formation and management of the assortment, the organization of commercial work and personnel management in retail chains are revealed.

For students of trade specialties, as well as for practical workers in the trade industry.

Based on Table 9.11, it is possible to identify factories for which the assortment needs to be revised. A large number of decorative elements per collection or a large share of poorly selling collections leads to a disproportionate profit from the factory's share in the assortment. It is necessary to exclude from the analysis the Lugo factory, the Yekaterinburg Ceramics Factory and the Sokol factory, the range of which is mainly floor collections without decorative elements. Among the clear leaders are the factories “Furla”, “MetrPol”, “Gamini” and “Dom Decor”. These factories' shares in profits are significantly greater than their shares in assortment. Among the obvious outsiders are the Im. 1 May" and "Interprima".

In order to get a complete picture of the factories present in the assortment, it is also necessary to compare their share in profit and in inventory. Suppliers whose share of profit is higher than their share of inventory are donors of turnover.

Turnover donors are goods or suppliers who invest more than 10% of their monthly sales volume in the customer’s turnover, that is, they provide a loan in a larger volume than is necessary to fill the logistics system of the organization purchasing it with goods. Suppliers of this group provide such a deferment for loan repayment that during this time the customer manages to sell the product, receive money for it and use it for some time to finance the purchase of other goods. It turns out that the more goods of this group are sold, the more funds are attracted from the supplier. Typically, such loans are provided either by long-time partners of the company, or by new suppliers of unknown goods who agree to any conditions for the distribution of their goods.

To increase turnover in a given direction, it is necessary to reduce the share of suppliers who accept turnover.

Turnover acceptors are goods or suppliers in the maintenance of which the customer himself has to invest funds in the amount of more than 10% of the monthly sales volume. As a rule, the goods of suppliers of this group are in high demand, which forces them to be purchased on the proposed terms: shipment on an advance payment or the provision of a small loan, insufficient to fully maintain the cargo. The main thing here is not to exceed the sales plan, since any increase in sales leads to an additional withdrawal of investment resources.

In 2003, the donors of turnover were the factories “Gamini”, “Drago”, “Lugo”, “EkZKI”, “Dom Decor”, “Top Keramik”. All other factories were turnover acceptors. The high turnover of Top Keramik is associated with a short functional logistics cycle; it is an exclusive manufacturer of the Cozy House shopping mall and sells its assortment only through the Cozy House shopping mall chain of stores. Reducing the share of suppliers with low turnover in the assortment next year will increase the turnover in the direction to the level of 2.5–3.5, taking into account goods in transit. Table 9.12 shows the structure of profits and inventories by supplier for the ceramic tiles category.

Table 9.12

Structure of profit and inventory by suppliers in the ceramic tile category, %

2. Analysis of the existing assortment matrix. The product portfolio in the direction of “ceramic tiles” was formed in April 2005 and was fully introduced only in the retail stores of the “Cozy House” shopping center, however, analysis by profit segments, design and color was not carried out due to lack of data.

For a better understanding of further analysis, it is necessary to introduce the concept of “series”. The series will be the name of the color of the base in the collection with the decoration for it. For example, if there is only one color in the collection, then the collection will be a series; if there are three colors in the collection, then each color with a proportional share of the common background tiles and special elements will be a series.

For a correct analysis, more detailed segmentation by price was carried out, the names of colors and design types were changed. This is due to the fact that the indicators in the divisions are very different, and when the segment is considered as a whole, the differences are leveled out, this interferes with the analysis. The segmentation results are shown in tables 9.13, 9.14, 9.15.

Table 9.13

Identification of price segments

Table 9.14

Selecting color segments

Table 9.15

Highlighting Design Styles

3. Analysis by price and profit. To assess the profitability of certain segments, the following methodology is used. All basic products are distributed into series, for each of which the “profit per series” indicator is calculated, which includes the average monthly profit for the period April – September for all articles included in this series in Moscow stores. Each series is assigned a classifier: “type of tile”, “price”, “color”, “design”, and for wall tiles its place in the exhibition is also indicated. The assortment is filtered according to these indicators, and the amount of profit per segment is calculated.

The most significant indicator is “price”, and its importance increases as the price of tiles becomes cheaper and decreases greatly when the price rises above 30 rubles/sq.m. m. The importance of the “design” and “color” indicators is approximately the same, but less significant than “price”. Analysis by price segments is shown in Table 9.16.

Table 9.16

Analysis by price segments of the product “wall tiles” (example 1)

Analysis of the existing assortment matrix showed an excess of collections in the segment from 18 to 22 rubles/sq.m. m and high segment profitability from 12 to 18 rubles/sq. m. In addition, the segment over 30 rubles/sq.m. should be considered promising. m. With a retail price of 30 rubles/sq. m, you can offer the buyer beautiful tiles that will look expensive. Segment from 22 to 30 rubles/sq.m. m is unpromising due to the fact that it is technologically impossible to make a truly interesting design for such a price, and similar tiles can be bought cheaper. After a more detailed analysis, we can say that the segment from 18 to 22 rubles/sq. m is also promising, there are highly profitable collections, but their selection should be more careful. (The principles of constructing a basic matrix were outlined at the beginning of this chapter.)

Table 9.17 shows what the new assortment matrix for 2007 will look like.

Table 9.17

New assortment matrix 2007 (example 1)

An analysis of floor tiles by color is presented in table. 9.18.

Table 9.18

Analysis by color of the product “floor tiles” (example 2)

An analysis of the existing color palette of the assortment matrix shows that the most promising colors for floor tiles are beach, sunset, and coffee colors.

Table 9.19 shows another version of the assortment matrix.

What conclusions can be drawn by analyzing the work carried out by the category manager?

The general objectives for the direction for 2007 are to create an assortment recognizable to the buyer and accustom him to the idea that the “Cozy House” shopping center is a network of stores and pavilions where one has to go to buy tiles.

Based on the above data, a number of steps can be proposed in the development of the category.

1. Increasing the range of tiles in the “medium” price segment by attracting one or two new manufacturers will presumably increase profits in this segment. As a result, the share of the “economy” price segment will decrease.

Table 9.19

Assortment matrix built on the principles of category management (option 2)

2. Increasing the assortment in the “expensive” price segment due to interesting in design, unusual and fashionable, trendy collections.

3. Replacement of the assortment in the “medium-high” price segment with better-selling designs and, as a result, an increase in the turnover of the series.

4. A further increase in profitability is planned by increasing turnover. The increase in turnover will occur due to the reduction of articles per collection, the closure of factories that accept turnover (Sokol, Im. May 1, possibly Interprima) and an increase in the frequency of purchases. It is expected that, taking into account the purchase of new products and the expansion of the range of floor collections, it will be possible to maintain the same level of inventory.

5. Introduction of a new procurement scheme for new products:

Reducing the amount of the first purchase; within three to four months after the new item is posted on the store display, a shortage of the collection is allowed; only after four months, when the potential of the new product is determined, the level of warehouse balances increases to three months of turnover;

Acceleration of assortment renewal (20–30% change in assortment per year is expected).

6. By increasing the speed of updating the assortment, a temporary competitive advantage will be obtained, so a slight increase in the markup is expected.

7. Due to the proposed steps, a 10-12 percent increase in profit per store in the direction will be achieved without increasing investment in inventory.

In retail sales, it is very important to correctly determine the composition of the goods sold. The range of products offered is what the consumer sees when visiting a store. An effective assortment is a tool for attracting and retaining consumers.

An assortment is effective if it:

• Attracts the consumer, i.e. provides the necessary traffic.
• Full enough so that the consumer finds all the necessary products and does not go to a competitor’s store.
• Cost effective: The volume, price and marginal profit of product sales are sufficient to achieve the trading company's revenue and profit goals.

The ideal range in terms of efficiency– such that the consumer constantly visits only this store (and not competitors’ outlets), completely buys up the goods for a certain period (inventory balances are minimal), while the prices for the goods are such that the company receives sufficient profit from its sale.

In reality, it is very difficult to meet all these conditions.– too many factors need to be taken into account, but it is necessary to strive for this, since an effective assortment is a key tool in a highly competitive struggle.

To solve this problem, a document is formed, which is called assortment matrix. This document reflects the result of compiling the assortment in the form of a table, which describes which product groups and SKUs should be presented in the assortment, at what price they should be sold and what volume of inventory should be at each point of sale.

Stages of compiling an assortment matrix

There is no generally accepted algorithm for compiling an assortment matrix; each trading company may have its own method. Nevertheless, the set of factors that must be taken into account is the same for everyone, and recommendations can be given for drawing up an assortment matrix.

Exemplary kit stages of compiling an assortment matrix:

1. Development/revision concepts for a specific point of sale.
2. Market segmentation and identification of target customers for a retail outlet.
3. Determining Price Ranges for target clients.
4. Formation of an assortment classifier: division of the assortment into groups and SKUs.
5. Defining width and depth for each product group.
6. Defining a set of brands presented in each product group.
7. Distribution of roles by product groups and brands.
8. Formation of a list of goods in the assortment matrix(table rows).
9. Final filling assortment matrix (table columns).

On first At the concept development stage, it is determined which customers' needs a particular outlet should satisfy. Each store is characterized by certain parameters that the company cannot influence.

Some of these parameters that define the concept are:

• Area(center, outskirts, business, industrial or residential area);
• Sales area and the total area of ​​the premises;
• Floors and location of the outlet among other shops;
• Availability for buyers: paths of approach and access.
• A very important factor– presence of competitors and their assortment and pricing policies.

Taking into account all these parameters, the concept of a retail outlet is formed: supermarket, pavilion, specialty store, etc.

For example, a company selling cell phones and cellular communications might post:

• in a large shopping center– a full-scale pavilion offering a full range of company services and products;
• in a small room in a prestigious residential area– store of elite models;
• in convenience stores and bus stops– small kiosks providing a limited range of services and a minimum set of inexpensive telephones.

The concept of all retail outlets will be different, and the assortment matrices will also be different, despite the fact that all retail outlets belong to the same trading company and can operate under a single sign.

On second stage, the customer segments that can visit these outlets are determined. Customers can be segmented according to a variety of criteria: income level, age, nature of demand, habits, etc. As a result, the target segment of buyers will be determined, for which an appropriate assortment matrix will be formed.

On third At this stage, all products are divided into price segments and the ratio of these segments.

Now it's time for the goods.

On fourth At this stage, the entire range of products is divided into product groups, subgroups and segments, down to a separate SKU. SKU, or article (this term was used in Soviet times) is an identifier of a separate product item. The same product can be presented in different SKUs, for example, granulated sugar in 1 kg, 5 kg packaging and refined sugar are all different SKUs.

On fifth At this stage, it is determined how wide (number of product groups) and deep (how many SKUs should be in each group) the assortment should be. The main factors here are the concept of the outlet and the assortment policy of competitors.

On sixth stage, brands are determined in each category, again depending on the concept and information from competitors.

On seventh Each stage of each category is assigned a specific role.

The roles may be as follows:

• Target (image)– aimed at attracting and retaining the main share of buyers; This category is characterized by high marginal income.
• Main– a group of the most popular goods, which attracts the main and constant flow of buyers: these are goods with low marginal income, but constant demand forms a large mass of total marginal income. Products in this group must be included in the outlet’s assortment.
• Seasonal (related)– as the name implies, this is a group with a pronounced seasonality, helping to attract new customers and stimulate demand through new products and special seasonal offers.
• Comfortable (optional)– a group of products that complement other groups and form customer loyalty through the convenience of purchasing all products in one place.

On eighth And ninth At this stage, the assortment matrix table is filled in.

Some important stages of compiling an assortment matrix are worth considering in more detail.

Segmentation of a product group based on the physical properties of the product

The type of final assortment matrix directly depends on the segmentation of product groups.

For example, a customer's thirst need can be satisfied by different drinks that make up a very wide group of products.

Group narrowing steps:

• Drinks can be alcoholic or non-alcoholic;
• Among non-alcoholic drinks, ready-made drinks can be distinguished and products for preparing beverages;
• Among the products for cooking, tea can be distinguished, coffee and other drinks.

Tea - This is a ready-made product group that satisfies a very specific buyer need. However, within this group it is possible to divide products into segments. The following segments can be distinguished:

• depending on the variety it may be black, green, red or a mixture of teas;
• depending on brewing method can be in bags or by weight;
• depending on the value of the variety and brand can be segmented by price.

As a result of segmenting product groups, a product classifier is formed, which is the starting point for creating an assortment matrix after determining the width and depth of the assortment.

Using sales analysis to determine the number of product units (SKUs) within each segment

A separate segment can be represented by a different set of product units (SKU). Each outlet has a limit on the number of different SKU, which can be displayed in the sales area, this limitation is determined by the area of ​​the sales area, the sales equipment used and the type of display.

In these conditions, it is necessary to set such a set of SKUs, to the range of products allowed to achieve maximum profits per unit of retail space. Knowing the limit on the number of SKUs, it is necessary to solve the problem of representing SKUs in each segment.

The necessary information for this kind of decisions is provided by an analysis of actual sales for these products, taking into account the concept of the outlet and the actions of competitors. It is also necessary to take into account the role of the product group or its segment.

For example, Sales analysis shows that among different types of tea, 70% of the profit comes from black tea, 30% from green tea.

Let's say that retail racks allow you to display 200 SKUs. Then a simple calculation shows that in the product display, 140 SKUs should be from the black tea subcategory, and 60 from the green tea subcategory.

This is a fairly rough calculation that demonstrates the general approach to distributing SKUs across product segments; it can cause errors when determining SKUs in narrow segments.

When accurately planning SKUs, it is necessary to take into account the product category.

For example, for goods of the main category, it is unacceptable to underestimate SKU and exclude such goods with low profitability: if you exclude, for example, baby milk with low marginal profitability, then the buyer, not finding this product, may go to competitors, since this product is consumed daily and its absence in the assortment is unacceptable .

Also, the planned SKU level may be higher than calculated for seasonal products - these products provoke consumer traffic and an increase in demand in general.

About price segments, determining the share of goods of each price segment (economy, mass, premium) in the assortment matrix

Typically products are divided into three segments:

• economical– for buyers with low incomes and low requirements for the consumer qualities of the product;
• mass– designed for the bulk of consumer demand;
• premium– designed for a narrow segment of buyers with a high level of income.

Depending on the business industry, the number of segments may be more or less. For example, natural gas as a product may not be segmented at all and supplied to all consumers at the same price. Cars are often broken down into more price segments.

For each retail outlet, it is necessary to determine the price levels of each segment and the share of assortment in each segment.

For example, a company selling cell phones can set the following ratios to the economical/mass/premium price segments:

• for a large store – 30%/50%/20%,
• for luxury fashion store – 0%/20%/80%,
• for a small pavilion – 80%/20%/0%.

Thus, a new restriction is added to the previous distribution of SKUs by assortment, by price segments. The assortment matrix needs to be clarified using segment ratios.

Continuing the above example, let’s say that a supermarket has 200 SKUs for the product category “tea” and for this outlet the ratio is set to 30/50/20.

This means that the store should have:

• Black tea – 140 SKUs in total, including:
  • Economy segment brands – 140*30% = 52 SKU,
  • Bulk – 70 SKU,
  • Premium – 28
• Green – 60 SKUs, including:
  • Economy – 18 SKU,
  • Bulk – 30 SKU,
  • Premium – 12 SKU.

Now you can move on to filling each segment of the product category with trademarks (brands).

Selection of Trademarks (TM) to fill the assortment matrix

In the example above, it is calculated that the premium black tea segment of the store should be represented by 28 SKUs. This number of SKUs now needs to be filled with specific products from different manufacturers.

This should also be done based on sales analysis data, taking into account additional considerations:

• It's not just profitability that needs to be considered(share of profit) of the product, but also its popularity among buyers, otherwise there is a chance of filling the shelves with profitable but slow-moving goods;
• Too many brands from different manufacturers makes it difficult to purchase them, laying out and accounting, the number of stamps should be the minimum necessary.

This leads to the fact that sales analysis must also be supplemented with marketing research data - a survey of customers about brand preference, as well as information about the actions of competitors in these segments.

Information about which price segment a particular product belongs to can be understood in different ways: by surveying consumers, based on information from manufacturers and suppliers, or based on sales analysis (the ABC analysis method is used).

Filling the SKU assortment matrix from the above created segmentation

The final stage of forming an assortment matrix is ​​filling out the matrix table based on the created structure of categories and segments, as well as price lists of suppliers.

The assortment matrix will include information:

• By line– SKUs grouped by product groups and segments;
• By columns:
  • planned quantity SKU;
  • markup percentage for each position;
  • profit from each SKU;
  • share in total arrived.

Such a matrix is ​​compiled for each retail outlet. By summing up the data from assortment matrices by retail outlet, the company's overall assortment matrix is ​​compiled, which can be further analyzed to ensure that the company's profitability goals are achieved.

General assortment matrix– the basis for planning purchasing and logistics work.

Conclusion

The article uses examples to examine the typical process of creating a company’s assortment matrix.

You can use another matrix generation algorithm, but in any case the following principles must be observed:

• Accounting concept retail outlet;
• Product segmentation according to consumer properties;
• Product segmentation by price level;
• Taking into account the category type during distribution SKU

Maintaining an adequate and effective policy for the development of a retail outlet is impossible without drawing up an important document - the assortment matrix is ​​an integral element of management.

You will learn:

• What is an assortment matrix?
• How to create an assortment matrix for a store in Excel.
• How to manage a large assortment volume.
• How to implement an assortment policy.
• What are the 5 basic principles of assortment management?

An assortment (product) matrix is ​​a document consisting of a complete list of goods sold in a store or other outlet. When compiling the list, the location of the store, the features of its format, and the general requirements of the assortment policy should be taken into account.

When developing a business development strategy, the management of a retail outlet does not set the goal of creating an assortment matrix. The formation of this document occurs as a result of the selection of a specific assortment for a specific store, taking into account all its consumer characteristics. That is why the flawless creation of an assortment matrix is ​​available only after the trade policy has been fully formed and the general development strategy of the company has been determined. Responsibility for drawing up and implementing an assortment matrix most often rests with supply managers who know the suppliers of goods and have information about the state of the pricing policy of the sales market. This information helps to create the most effective product range.

It is believed that the range is effective when the following conditions are met:

• the product is attractive to visitors to the outlet, which ensures optimal traffic;
• the product is quite diverse, which allows the consumer to find everything they need in one place without visiting other stores;
• The product is profitable, which means that the volume, price and net income from its sale provide a marginal profit sufficient to achieve the company's goal.

The most effective assortment of goods convinces the buyer to constantly visit this particular store, distracting him from competitors’ outlets, and completely buy up the goods within a certain period of time, leaving only minimal stocks of leftovers. At the same time, prices are set for goods that allow the company to receive optimal profit from sales.

Compliance with all these aspects in reality is a rather complex process, because many factors must be taken into account. But, understanding that a highly competitive battle cannot be won without an effective assortment, it is necessary to strive for it. It is to solve this problem that an assortment matrix is ​​formed in the form of a table, with columns and graphs reflecting information about the necessary product groups, optimal prices for each product and the volume of inventory for each outlet. The Excel format is most convenient for creating an assortment matrix.

An example of an assortment matrix (product matrix) in an Excel table for a grocery store:

Sample product assortment matrix

The development of a competitive market is always accompanied by jumps in the marginal profit received from the sale of one service or unit of goods. Retail trade demonstrates this process perfectly. An increase in the number of stores certainly provokes price competition, which ultimately affects each of them by a decrease in income. Competition is a kind of struggle for survival. A short-sighted entrepreneur who has not restructured his business to suit the new reality will not be able to make it effective and will be forced to simply leave the market, giving his place to more acumen.

How to manage a large assortment: example price list

The correct price list allows the client to focus on the assortment he needs, and the seller to correctly set prices and calculate allowable discounts depending on the volume of purchase.

Find out how to compose it from the article in the electronic magazine “Commercial Director”.

How to implement an assortment policy

Assortment policy- This is a strategic element that greatly influences the success of the development of a retail outlet. Even the presence of a well-functioning personnel management system, experienced accountants and talented administrators will not save the store from collapse without thoughtful work with the assortment.

Many people still work, forming the assortment of a retail outlet only on the basis of their intuition. This is acceptable if the entrepreneur is not at all interested in the development of his store. To build a highly profitable business, you cannot do without developing an assortment matrix, market analysis, planning and assortment management.

Effective and correct compilation of assortment and raw material matrix serves to:

• increasing gross profit;
• reduction of inventory;
• increasing the average check amount;
• stimulating the growth of customer loyalty and, as a rule, in the near future, a daily increase in the number of receipts;
• efficient use of funds.

Modern market policy allows retail chains not to invest their money in goods, but to obtain interest-free trade credit provided by suppliers. Their income is used to open new stores, purchase modern equipment and innovative materials.

The assortment matrix will be close to ideal if it is compiled separately for each group of goods related to the store classification. This is very convenient and allows you to take into account all the consumer properties of any product item, features and delivery conditions. All these factors cannot be covered by a single model of the assortment matrix. In these cases, it is important to specify the different groups of goods.

The main parameters when forming the product assortment matrix

The first step in preparation for drawing up an assortment matrix is ​​a clear identification of possible product groups. Each group is then detailed down to a specific product. Try to determine the assortment based on consumer demand and the needs of the outlet’s customers. When determining the price, start from its average value, taking into account the percentage of profit for each product item.

Having identified the most relevant product items, analyze the offers of suppliers on the market. When choosing a supplier, always collect information and reviews about the quality of the company’s work, its reliability, partnerships, and the rules it adheres to.

To compile an assortment matrix, the following information is required:

• on the name of a group of goods (for example, haberdashery);
• about the name of the product category (for example, belt, gloves, wallet);
• about the price category of the product (premium class, middle class, economy class);
• about the product code;
• brand;
• on the designation of packaging or packaging;
• on the name of each product item;
• supplier of goods;
• about the employee responsible for the category;
• on the inclusion of this product item in the minimum assortment.

Minimum assortment are products that have maximum consumer demand in a given store. It is important that the product items that make up the minimum assortment are constantly available on display.

The assortment matrix of a large shopping center will consist of a large number of product items. In medium and small stores it is much less. The head of a trading enterprise independently chooses how detailed the development of the assortment matrix should be. The main condition is that the document must be convenient for constant use.

When opening a brand representative office in a region, the specifics of the stores are always taken into account. Undoubtedly, it would be much more convenient to work with one type of product. This makes it easier to organize logistics, search for suppliers and new products. But in stores located in different places, consumer demand is not the same and the assortment matrix must be built in accordance with it.

Try to staff your staff with professionals whom you can completely trust. Only in this case, changes in the assortment matrix will be reasonable, appropriate, based on an analysis of customer interest, and in demand. The manager must review and approve all local inventory management activities before changes can be made. This centralizes the activities of all representative offices. The selection of assortment is significantly influenced not only by consumer demand, but also by the availability of suppliers, methods of delivery of goods, etc.

It is important that the assortment minimum is observed, there are no dramatic changes in the main percentage of the assortment matrix, and new products are included after an analysis of their profitability for a specific territory.

When drawing up the minimum assortment, try to determine the role of each product item. There is a certain classification that should be followed.

1. Locomotive goods.

This is a group of products that form the basis of the assortment matrix. It includes the most popular products for a given outlet, sometimes with a minimum markup, since their main task is to attract customers to the store, and not to provide high profits. The matrix allows for the presence of several locomotive groups of goods. It should be understood that these should not be essential goods, but products that have visual appeal.

2. Substitute goods.

Products in this group can be divided into two categories:

• expensive and profitable;
• cheap and highly profitable.

It is important to ensure that the buyer becomes interested in this group, and not in locomotive goods. Place them side by side on the display and give the buyer the opportunity to compare them and choose a product that is more profitable for you.

3. Related products.

This group includes products that complement the main purchase. These are various accessories, fittings, batteries, etc. This also includes services accompanying the purchase. For example, setting up equipment, etc. It is important that everything increases the value of the average bill.

4. Status goods.

Status products are more likely to create an image for a retail outlet than to bring noticeable profits or increase the number of sales. But it is these products that provide the buyer with the feeling of a large selection.

Buyers at any retail outlet are representatives of one of three categories:

• people interested only in stores with low prices;
• people for whom value for money is a priority;
• people interested in purchasing a product that can satisfy their needs, regardless of its price. Status goods are purchased for this group.

A correctly compiled assortment matrix is ​​an example of a significant simplification of the process of managing goods and services. You need to know all the nuances of its construction.

• Online sales of goods: 4 principles that will help in the VIP segment

3 important rules for forming an assortment matrix based on your goals

Assortment planning cannot be carried out without first determining priorities that influence the overall development strategy of the company. It is very difficult to build an assortment matrix so that all goods simultaneously bring maximum profit, have long-term trade credit and a minimum price. It is to select the most effective product for a specific outlet and improve the financial results of the company that assortment matrices are built. Try to adhere to the following directions:

1. Focus on maximum profit. This direction is characterized by the inclusion in the main assortment list of goods that have a maximum markup, consisting of the actual markup and retrobonuses, if any. It is necessary to analyze the retail price level of competing companies to determine the maximum possible markup.
2. Focus on maximum trade credit. In this case, it is implied that a product is included in the assortment matrix for which a long-term deferred payment is possible. It should be understood that an increase in deferment provokes an increase in the price of the product, which will lead to a decrease in the markup or an increase in the retail price.
3. Focus on the maximum level of service for customers. Working in this direction, build an assortment matrix, focusing on covering the desires and needs of the maximum number of customers. Buyer preference should be a priority, even if it conflicts with advantageous deferred payment offers or product profitability. According to experts, this is the optimal path, aimed at the long term and leading to maximum results.

Professionals in assortment management take into account in their work three basic rules:

1. Customer orientation.

The meaning of this rule is that, when developing the product range of a retail outlet, the company adheres to a general development strategy, but the main guideline is aimed at the needs of the target audience: regular or potential visitors to the store. In this case, we consider not just an abstract group of people, for example the middle class, but a specific group that has clear characteristics, in particular income level, marital status, average purchase bill, product preferences, area of ​​residence, etc.

Retail and chain trade in Russia at the initial stages of its formation identified three levels of income of buyers - poor, middle and rich. The current level of competition has significantly expanded these segments, requiring a more loyal attitude towards customers, a clear focus on them assortment and prices.

It should be understood that a narrow focus on the buyer’s income level is advisable only in large cities with a large population and developed infrastructure. For owners of stores located in small towns, with two or three retail chains and various retail outlets, there is no point in focusing their work on a narrow group of people; it is more profitable to cover the needs of representatives of several segments. There is no doubt that expanding the assortment will smooth out the depth of the store’s focus, but it will significantly increase the number of its visitors.

2. Taking into account the specifics of store localization.

This rule emphasizes the importance of taking into account the location of the store when forming the assortment matrix. For its competent compilation, the specifics of the locality where the retail outlet is planned or located, its location, surroundings, the approximate contingent of regular visitors, etc. are important. In accordance with these criteria, the assortment of each specific outlet is finalized, depending on the specifics of the region or city.

Many retail chains, represented in various cities and regions of the country, strive to standardize the assortment list of their stores, which completely contradicts the identified need to adjust the assortment matrix to the needs of a particular region or city. In such cases, it is customary to use one of two approaches to interaction between the central office and regional offices.

The first approach assumes that regional offices are completely subordinate to the head office. They submit their proposals on the assortment matrix and analytical reports to the central office for consideration and decision-making. Any product item can be included in or removed from the matrix only with the permission of the head office. This approach helps to strictly control the activities of the sales office and eliminates the need to make biased decisions at the local level, for example, when working with suppliers.

In the second approach, regional representative offices are provided with a fully formed assortment matrix, including subgroups, but the specific names of goods sold by the outlet are determined directly by the managers of the sales office, taking into account the specifics of its location.

We should not forget that the assortment matrix must correspond to the retail space of the store and its format.

3. Optimization of the supply chain.

The need to optimize trade supplies is determined by the level of actual work of the head of the retail outlet with suppliers and manufacturers, as well as the attitude towards the introduction of exclusive new products to the market. All these issues are inextricably linked with assortment management, focused on the regional characteristics of a particular market. For example, for retail outlets in large cities that have a high level of migration between settlements (Moscow, St. Petersburg, etc.), it is important to orient the assortment matrix towards well-known and widespread brands and brands. Trusting one brand, which is found quite often and in any city, a person purchases its products more often than unknown local brands.

On the other hand, in regions with low daily migration, local manufacturers are often more popular than name brands. Statistics show that products made in their own city are more trustworthy compared to well-known brands, and have a lower chance of being counterfeit or stale, since they are produced nearby. Patriotism and pride in one’s small homeland also play an important role in choosing local products, especially if the quality characteristics of the product are not inferior to well-known companies. You can leverage these benefits by focusing your inventory on local brands. In this case, not a single representative of a retail chain with a head distribution center will be able to compete in providing the store with a wide range of products from your local manufacturer.

A store seeking to create a competitive advantage with an exclusive assortment is recommended to fill the assortment matrix with products that are not represented on the local market. Capital boutiques are becoming the standard for regional stores, which, in turn, follow the example of European or Western stores. You should be aware that additional financing will be required to purchase exclusive products. Try to introduce only those new products that correspond to the format of your store and can attract customers because they are presented only in your store.

Stages of assortment matrix formation

Understanding the goal and knowing all the rules, feel free to begin forming an assortment matrix. Conventionally, the whole process can be divided into three stages:

Stage No. 1. We analyze the source data.

You should not start compiling a product range before considering all the characteristics of the outlet: what format, size, and whether it has any special features. Try not to miss anything and take into account all parameters, including:

• shape and area of ​​the store, number of floors of the building;
• location of the outlet, including area, degree of accessibility for customers, level of competition, etc.;
• socio-economic features of the microdistrict;
• estimated assortment and necessary equipment.

After analyzing all the data received, decide on the retail format, giving preference to a self-service store, a discounter or trade from a counter. Then formulate inferred visitor preferences. Work out your positioning.

The correct formation of the assortment matrix and the purchase of relevant goods is carried out with the obligatory presence of a general strategy for development and positioning in the eyes of visitors. But this is the ideal option. In reality everything is different. First, goods are purchased, completely randomly, only to fill display cases and shelves, and then the sales methodology is determined. The current level of high competition makes this path completely ineffective.

Stage No. 2. We segment customers based on research of current demand.

The second stage is devoted to understanding potential customers, their habits, requests and needs. Based on this, they determine the best way to influence the target group and choose marketing and advertising concepts. The characteristic by which the segments are divided does not play any role. It is important to identify your potential client audience and understand their expectations. The result will be a key segment of visitors to which all efforts must be directed.

Obtaining this information is quite simple, for example, by conducting a survey of potential clients.

Stage No. 3. We compare our own assortment with that of competitors.

An important point in drawing up an assortment matrix is ​​to analyze the level of competition and positioning your outlet relative to others.

It is not necessary to analyze the activities of all stores in the area. Two or three main competitors are enough. Identify their strengths and weaknesses, what makes them different from each other. Conduct an analysis of pricing policies by comparing the cost of goods from key groups. This provides an excellent opportunity to identify your competitive advantages and add if they do not exist.

However, this step is not always necessary. There are store formats where competitor analysis is not expected.

Expert opinion

The main thing for me is consumer demand

Anastasia Kondratenko,

owner of the store “Our Housekeeper”, Tyumen

You should not focus on competitors when forming the assortment of your outlet. The only thing that matters is customer demand. My store is located in the courtyard of residential buildings, I often have to work behind the counter myself, and this helps to make timely adjustments to the assortment list of goods, knowing how much of which product is sold over a certain period of time.

I try to form an order so that by the time the new product arrives, the entire existing batch has already been sold. This is very popular with customers who understand that the store always has fresh goods. Of course, you need some experience to learn how to correctly and competently form a store’s assortment; it took me a year and a half to avoid mistakes and clearly draw up a matrix, confidently knowing what and in what quantity of goods to order. For example, elderly people living in the neighborhood of our store have a pension on the 12th of every month, and the majority receive their salary on the 18th. I always try to strengthen the product range by this time, but at the beginning and end of the month I order the minimum amount of goods.

I always create an assortment matrix for the grocery store, which makes my work easier and faster. This quickly and reliably shows the most profitable price segment and product positions. I make notes right in the table to make it easier to understand the real situation.

• How to divide products into categories and bring order to your assortment

Stage No. 4. We determine the main groups of goods presented in the store.

Having chosen the location of the store, having analyzed the possible category of customers, their preferences and the offers of closest competitors, proceed to forming an assortment matrix for your own outlet.

Based on the general concept of the store, fix prices for the main product groups. Determine for yourself what price level your store will occupy - above the market, below or average. The next step is to select the most convenient suppliers of the necessary goods.

Stage No. 5. We divide the assortment into categories.

For marketers, this part of preparing the assortment matrix is ​​the most interesting. Taking as a basis the analysis of consumer demand, adding to it your own experience and knowledge of psychology, divide the main groups of goods first into subgroups, and then into individual positions.

This is a rather interesting process, as it allows you to imagine yourself as a buyer in your own store, think like him, and proceed from his considerations. Only this approach will allow you to fill your store shelves with in-demand goods, increase the turnover and profit of your outlet.

Stage No. 6. Understanding the balance of the company's product range.

This stage of compiling an assortment matrix allows you to analyze how balanced product items and categories are. The assortment must be balanced in both depth and width, taking into account the key role assigned to the product group. There are few such roles:

• unique products, supporting the store’s image and related to impulse demand. Such goods are taken thoughtlessly on the way to the checkout;
• priority goods, attracting buyers and bringing maximum profit. Customers intentionally come to the store for this group of goods. If the desired item is not available, customers leave without purchasing anything;
• basic goods that have a high turnover and can attract a flow of buyers. The buyer also comes to the store intentionally for goods of this group, being confident that he will find what he needs;
• convenient product categories, forming customer loyalty and attracting customers to this particular store;
• seasonal goods aimed at changing the assortment and attracting new customers.

Expert opinion

We have many items that we introduce or reduce depending on the season

Irina Krechkevich,

grocery store owner, Guryevsk (Kaliningrad region)

I analyze the compiled assortment matrix every six months, removing products that have become irrelevant. I consider it inappropriate to do it more often, since demand always varies depending on various factors, in particular the season. An adequate assessment can only be given for at least six months.

I always try to get ahead of demand a little and introduce new season items into the assortment a month before it starts. For example, I start forming a beer base for the upcoming summer season at the end of March. This makes it possible to calmly decide for the season on the purchase volume, display, advantageous positions, etc. I do not accept subsequent offers from suppliers of new brands of beer, believing that if the buyer did not see this product at the beginning of the season, then he will not be interested in it in the middle . Most often, customers decide on the choice of brand back in May.

Any grocery store has many seasonal items that are periodically introduced and then eliminated. This does not raise questions for suppliers. They know that they are of interest to us only at certain times of the year. Our cooperation begins a month before the start of the season and lasts on average three months. After this, this product item is excluded from the assortment matrix.

Stage No. 7. Final compilation of the assortment matrix, formation of the final document.

The final stage of forming an assortment base, when all that remains is to enter everything into a single database. At this stage, additional preferred characteristics of the product are also taken into account: its color, size, packaging, etc. All the nuances that help the buyer make his choice in favor of your store are entered into a single array, and then the minimum assortment is determined.

The formation, processing and analysis of assortment matrix data is most often carried out by a highly professional manager. It is in this case that the desired result is achieved, guaranteeing the stable development of the company.

The most commonly used method is ABC/XYZ analysis.

• Formation of the store’s product range from A to Z

Formation of product assortment matrices using the ABC/XYZ analysis method

When distributing work among managers, remember that warehouses should not be overfilled with goods of one type; the application should not be formed on general sales reports by suppliers, but strictly in a specific product subgroup.

It is much more convenient for a professional working with several product subgroups to control the availability of a particular product, to avoid excess stock, as well as a complete absence of goods on display shelves. To optimize the work of the purchasing department, it is necessary to clearly divide product groups between managers, covering the entire assortment. This will allow you to control and analyze the assortment matrix of the outlet as accurately as possible.

The job responsibilities of a manager with a high professional category should include responsibility for identifying and forming a minimum assortment and a general list of goods, as well as for conducting purchases within the assigned product group, taking into account seasonality and market fluctuations in consumer demand.

A professional manager does not just generate requests and transfer them to the supplier, he manages the range of goods included in the subgroup assigned to him, knowing which and in what quantity is available, and which needs to be ordered or added. An experienced manager always knows the tools with which these requirements are met.

When forming an assortment matrix, they most often use ABC analysis. But for thorough work with a product subgroup, analysis alone is not enough.

The point of this analysis is to show quantitative sales product items, but no information on profitability of a particular position there is no. There is no point in using this method to analyze anything other than the number of sales, or to draw conclusions about the profitability of products based only on this method, because the sale of one product from group C in terms of profitability can close the sale of 25 items from group A.

Forming an assortment matrix without taking into account the profitability of product items is considered incorrect. The professional approach to the formation of the assortment matrix corresponds to ABC/XYZ analysis, where the number of sales is ABC, and profit is XYZ.

The specified selection criteria provide a set of similar product subgroups with parameters AX, BX, CX, AY, AZ, BY, BZ, CY, CZ.

This implies:

• AX represents the product subgroup of the assortment matrix with maximum sales and maximum profit.
• BX represents the trading subgroup of the assortment matrix with the average number of sales and maximum profit.
• CX represents the trading subgroup of the assortment matrix with minimum sales and maximum profit.
• AY represents the product subgroup of the assortment matrix with maximum sales and average profit.
• AZ represents the trading subgroup of the assortment matrix with the maximum number of sales and minimum profit.
• BY represents a product subgroup of the assortment matrix with average indicators in terms of sales and profitability.
• CY is a trading subgroup of the assortment matrix with a minimum number of sales and average profit.
• BZ is a subgroup of goods in the assortment matrix with minimal profit and average sales.
• CZ is a subgroup of goods in the assortment matrix with minimal profit and minimal sales.

Such an analysis makes it possible to form an assortment matrix, observing the following principles.

The basis of the assortment matrix, let's call it a group A, constitute subgroups of goods that have characteristics AX, BX, CX, AY, AZ. Subgroup products should not be neglected either AZ, whose representatives are characterized by the maximum number of sales and minimum profits. These are goods of absolute demand that attract store visitors with their minimal markup.

To product subgroups BY, CY, BZ refers to auxiliary assortment IN-row.

Subgroup CZ comprise illiquid positions, as well as new items WITH.

An assortment matrix built in a similar way, which has subgroups A, B And WITH, fully visualizes the required purchase items.

Significant interruptions in the supply of goods make this matrix incorrect and not always relevant. In this case, you should increase the period of the analyzed interval, saving the sales history. This step will help to obtain reliable data necessary for further work.

If necessary, not wanting to miss anything, you can record the items selected for ordering in a matrix.

This method of analysis using an assortment matrix demonstrates the real state of product subgroups by position and supplier. This helps identify a priority supplier to route the order to.

For product items within the context of one supplier, selection is also done using analysis ABC/XYZ.

• What to do if customers want products that are not in stock

5 basic principles of assortment matrix management

The development of an assortment matrix as an element of a strategy for the successful development of a retail outlet should be based on modern principles of assortment management, combined with the general marketing direction of the company.

1. Compatibility.

All company strategies, including assortment, sales, pricing, communication, etc., must be combined and effectively complement each other.

2. Focus on customers-clients.

The entire assortment of goods presented at a retail outlet must have a high level of consumer demand and meet the wishes of customers, otherwise it will not be sold and will not generate any income.

3. Development.

Managers responsible for drawing up the assortment matrix are required to keep one step ahead of customer needs, which are constantly changing and growing. Adding to the assortment or removing certain items from it should not only correspond to new wishes, but also be ahead of them.

4. Professionalism.

As you know, personnel decides everything. Only a competent professional who knows the theory of assortment management, knows how to correctly apply it in practice, taking into account all the nuances of a particular case, and has analytical thinking, is able to analyze all the facts and make an informed decision that guarantees the company's effective development.

5. Efficiency.

All aspects of assortment management have the goal of increasing company profits. With the right approach to this issue, each product item makes an optimal contribution to increasing the profitability of the company, contributing to an increase in marginal profit.

“Hello, reader. Today we will talk about the assortment. And more precisely about what it should be. In any company, the assortment should be divided into appropriate categories and product groups. This is convenient for both customers and employees working with the assortment. The assortment of any trading company should be based on an assortment matrix - its compilation will be discussed in this article.”

The article turned out to be quite large, but it’s impossible to describe this component of a marketer’s work in a nutshell. So be patient.

What is an assortment matrix and what is it eaten with?

An assortment matrix is ​​essentially a kind of nomenclature list of absolutely all product names sold in a particular store or chain of retail stores (if the assortment matrix is ​​formed for the entire chain), compiled taking into account the characteristics of a given store (chain), as well as the assortment policy of the organization in in general.

To summarize, drawing up an assortment matrix is ​​an integral part of the assortment policy of a trading company, regardless of its organizational structure.

In general, compiling an assortment matrix in a retail store cannot be an end in itself, but should be the result of forming an assortment for a specifically designated point of sale. However, in any case, the assortment matrix is ​​created only after a clearly formed trade policy and strategy of the company. Ideally, a category manager (supply department manager, buyer) should be responsible for the creation and implementation of an assortment matrix, since only he knows where and what goods can be purchased.

Naturally, the assortment matrix is ​​not created by the efforts of one category manager. It is desirable that the marketing department, pricing department and management team, represented by the commercial director, take part in this process. However, their role is more limited to providing information on a particular product or product group, but the decision should be up to the category manager.

Stages of compiling an assortment matrix

Stage No. 1. Before compiling a product range, you need to clearly understand the format, size and features of the store for which it will be intended. At this stage, almost all factors of the outlet are taken into account:

• number of storeys, store area, its shape;
• its location (district, availability by customers, presence of competitors, etc.);
• socio-economic characteristics of the area where the store is located;
• Presumable display of goods and retail equipment.

Based on this data, the format of the retail outlet is determined (discounter, self-service store or trade “from the counter”, its specialization, etc.). An understanding of customer preferences regarding the breadth of the product line is also being formed. Positioning is being developed. In other words, drawing up an assortment matrix and, as a result, purchasing goods begins after having a clear strategy and positioning in the minds of buyers. However, this is ideal. In fact, it often happens that initially there is a purchase of goods for sale, and in a disorderly manner (as long as the shelves are full), and then methods of selling it to their clients are developed. Which is fundamentally wrong in the conditions of modern competition.

Stage No. 2. We segment customers based on research of current demand. This stage allows us to understand who our client is, what his habits, requests and needs are.

Methods of influencing the target audience, advertising and marketing concepts are determined. At the same time, on what basis these segments are created does not matter much. The main goal here is to understand who our client is and what their expectations are. The result of this stage of drawing up an assortment matrix should be the selection of a key customer segment to which the main efforts will be directed. There are several ways to obtain this information. One option is to survey potential buyers.

Stage No. 3. We compare our own assortment with that of competitors. At this stage of drawing up the assortment matrix, it is necessary to understand who our competitors are and what position our retail outlet will occupy relative to them.

In principle, a large number of competitors is not required; 3–5 will be quite enough. Having chosen the main competitors, you need to understand what advantages and disadvantages distinguish each of the competitors. It also compares the price level for key product groups. Based on the data obtained, as well as the adopted own strategy, we determine what our competitive advantages will be, for example, the depth or breadth of the presented assortment.

Stage No. 4. We determine the main groups of goods presented in the store. Having decided on the location of the retail outlet, customer preferences, and the depth and breadth of competitors’ product lines, a vision of your own assortment is formed.

Based on the general concept of the store, the price level for the main groups of goods is fixed. Will our company be priced above or below the market, or somewhere in between? Having understood the price level, we begin to look for suppliers for the groups of goods sold.

Stage No. 5. We divide the assortment into categories. This is perhaps the most interesting part of this task, at least for a marketer. Based on buyer preferences, as well as his own knowledge of buyer psychology, the marketer begins to break down key categories into subcategories and then into individual items.

Why the most interesting? Yes, for one reason, when scattering the assortment into categories and subcategories, you need to proceed from the buyer’s considerations. Those. practically start to think how the buyer who comes to our store thinks. Why did he come? Behind a huge TV, or behind a Samsung TV with a 110’ diagonal, gray color. Or maybe he just needs a TV in order to meet the 5,000 rubles. And so that the client does not leave without purchasing, the store’s assortment must be filled based on the key factors of the target buyer.

Stage No. 6. Understanding the balance of the company's product range. At this stage of compiling the assortment matrix, we analyze the balance of product items and categories. It is necessary to balance the assortment both in depth and in width, based on the key roles inherent in the product group. There are not so many roles for product categories. I will try to list the main ones:

• unique products - work for the company’s image, and are more related to goods of impulse demand, i.e. those that are grabbed without thinking on the way to the checkout;
• priority products - allow you to ensure maximum profit and attract the main flow of buyers. For such goods, a buyer can specifically come to our store and, not finding the right product, leave without purchasing anything;
• basic goods are also capable of providing a flow of customers and have a high turnover. The buyer also comes specifically for these goods, knowing that he will definitely find what he needs;
• seasonal products - aimed at rotating the assortment and attracting new customers;
• Convenient product categories – form a loyal attitude among customers.

Stage No. 7. Final compilation of the assortment matrix, formation of the final document. This is the final stage at which all information about the product is entered into a single database.

Additional properties are determined (color, brand, key parameters, packaging, etc.). In general, any data that can contribute to the convenience of customer choice and analysis is recorded in one single array. The assortment minimum (i.e., the basis of the assortment of any store) for a specific retail outlet is calculated. It is worth noting that in principle there should be no shortage at this minimum. That's why it's a minimum, the only thing lower is a coffin.

Ultimately, in order for the assortment matrix to be understandable, practically applicable in practice and convenient to use, three key rules must be observed:

1. customer focus;
2. store specifics;
3. optimization and nuances of assortment supply to the store.

As mentioned earlier, the ideal assortment matrix is ​​created for a specific store, and the store is not yet open. However, things are often completely different. The store has been operating for a long time, a certain circle of customers has been formed and a decision is made about whether we should change the assortment, and so off we go. Below is an algorithm for creating an assortment matrix, so to speak from life, as I happened to do. In fact, we had to not start everything from scratch, but redo what had already been done.

The first thing you need is a small product group containing items that are similar in their application; in this example, this is the “roulette” group. A database is formed based on the main key parameters (product code, name, profit and quantity of goods sold for the year, current balance, retail price, brand, productivity).

The second thing we do is divide the existing assortment into price segments. Of course, the number of price segments can be anything, but I divided it into three equal parts (cheap, medium, expensive). Blocks are also defined by key additional properties.

Third. We form a certain matrix of assortment representation in a particular price segment. As a result, we get a certain table containing key data for the analyzed group. In this table we record the number of positions and sales data.

Fourth. We analyze the received data. As a result, an understanding should come of which combination of “price segment” / “product property” is saturated or, on the contrary, is not filled in the context of the current assortment.

Fifth. We create a similar table for selected competitors. I personally selected three competing companies and recorded the number of assortments presented in their price lists based on key parameters. In other words, we create a similar matrix by the number of positions for our competitors.

Sixth. In accordance with the company's adopted strategy, we conclude that the product range will be reduced or expanded. Also at this stage, a decision is made to fill the empty intersections of segments.

This is where my mission ended, all the data was agreed upon with the category manager and transferred to the internal database management department to make changes to the program and record positions. If the manager wants to expand the range in any of the fixed segments, the program will not allow this.

I guess I'll end here. I think now, reader, you have a certain understanding of what the assortment matrix is ​​and what key points need to be taken into account when compiling it.