Range is this. Formation of an assortment of goods that ensures satisfaction of customer demand. People are presented with a wide range of products
Range- this is a fairly large collection, united by some common characteristic (raw materials, purpose, manufacturer, etc.), differing from each other in other characteristics. There are industrial and commercial, simple and complex, combined and mixed, expanded and enlarged assortments of goods.
Industrial range is a set of goods produced separately or separately.
Trade assortment— a set of goods sold in a retail chain. - this is the totality of all (and) involved in the sale of goods. The trade assortment includes a set of goods produced by both domestic and foreign manufacturers. It is more diverse than the industrial range.
The range of goods presented at a trading enterprise determines its type (department store, supermarket) and the form of trade service. In addition, in stores of the same type, but with different sales areas, the assortment will differ in the number of groups and types of goods. In this case, trading enterprises will be divided into universal and specialized, stores with a combined and mixed assortment.
Taking into account complexity, a distinction is made between simple and complex assortments of goods.
Those types of goods that are classified according to no more than three criteria will amount to simple assortment of goods(vegetables, table salt, laundry soap, etc.).
Those types of goods that are classified into varieties according to more than three characteristics will collectively amount to complex range of goods(shoes, clothes, etc.).
Enlarged assortment determined by the ratio of individual product groups. A group of goods should be combined according to a number of characteristics: production method, purpose, design features, etc. Expanded assortment determined by the types of goods presented.
Combined assortment is a set of several groups of goods for different purposes that are connected by a common demand and satisfy individual needs. For example, the Men's Clothing store sells a combined assortment.
Mixed assortment— a set of non-food and food products of various groups. The mixed assortment is represented, as a rule, by the largest number of groups and types of goods.
Main characteristics of the product range
The main indicators of the assortment are structure, completeness, depth, stability, and novelty.
Assortment structure
Assortment structure- this is the percentage ratio of certain sets of products to their total quantity.
Indicators of assortment structure are often expressed as percentages. For example, the percentage of shirts, suits and other products determines the type structure of the assortment in the Men's Clothing store.
Breadth of assortment
Breadth of assortment is determined by the number of product groups and is estimated by the latitude coefficient:
K w = G f / G n
- where G f is the number of product groups at the time of determination, units; Gn - total number of product groups, units.
Completeness of assortment
Completeness of assortment- this is the correspondence of the actual availability of types of goods to the developed assortment list and existing demand.
They express the completeness of the assortment through the coefficient of completeness K p of the assortment, which is determined by the formula:
K p = V f / V n
- where V f is the actual number of types of goods at the time of inspection (inspection), units; In n - the number of types provided for by the assortment list, supply contract, standards, etc., units.
Depth of assortment
Depth of assortment determined by the number of varieties of goods for each item. The assortment depth coefficient is estimated using the formula:
K g = R f / R n
- where R f is the actual number of varieties of goods at the time of inspection, units; R n - number of varieties provided for by the assortment list, terms of the contract, price lists, etc., units.
Stability of the assortment
Sustainability(stability) characterizes the constant availability of goods of the corresponding type (variety) for sale. The stability coefficient K y is determined by the formula:
K y = 1 - (P" f1 + P" f2 + ... + P" fn / P n× n)
- where P" f1, P" f2,..., P" fn - the actual number of varieties (types) of goods from those provided for in the assortment list and not on sale at the time of individual checks, units; R n - number of varieties (types) of goods provided by the assortment list, units; n - number of checks.
The assortment stability coefficient is usually determined for a specific period (month, quarter, year). It has been established that the optimal coefficient of stability of the assortment should be expressed by the following values: for department stores - 0.80; for specialized stores - 0.75.
New assortment
Novelty characterizes the emergence of new varieties of goods over a certain period of time and is assessed by the novelty coefficient K o:
K o = R o / R f
- where P o is the number of new varieties of goods that appeared at the time of inspection, units; R f - average number of varieties, units.
The novelty coefficient characterizes the degree of renewal of the assortment and the emergence of new products.
Formation of an assortment of goods is the process of selecting and establishing a range of goods that meets customer demand and ensures high profitability of a trading enterprise /17, p. 145/.
The most important principle of forming a product range is to ensure its compliance with the nature of the demand of the population served by the enterprise’s clients. It should provide for comprehensive satisfaction of customer demand within the selected market segment. In this regard, the range of goods offered to customers must have sufficient breadth and depth. At the same time, the breadth of the assortment is determined by the number of product groups, subgroups and names of goods included in the nomenclature, and the depth is determined by the number of varieties of goods for each item / 17, p. 145/.
A wide range allows:
Diversify products.
Focus on different consumer requirements.
Encourage one-stop shopping.
At the same time, a wide range requires the investment of resources and knowledge in various product categories.
A deep assortment can:
Satisfy the needs of different customer segments for one product;
Maximize the use of space in retail outlets; prevent the emergence of competitors;
Offer a range of prices and encourage dealer support.
However, deep assortment also increases costs for inventory holding, product modification, and order fulfillment. In addition, certain difficulties may arise in differentiating between two similar product lines. Typically, comparable assortments are easier to manage than disparate assortments. It allows the company to specialize in management and production, create a strong image and ensure stable relationships in sales channels.
However, excessive concentration can make an enterprise vulnerable to threats from the external environment, fluctuations in sales, and slowing growth potential due to the fact that the entire emphasis is on a limited range of goods.
Product range literally means a selection of items, a set of their names according to some characteristics. From this point of view, the range can be simple or complex, narrow or wide. This classification provides for the identification of groups of homogeneous products or goods based on type, variety, brand, etc. /17, p. 146/.
The process of forming a product range is carried out in the following four stages:
A list of main groups and subgroups of goods sold in the store is determined;
The distribution of individual groups and subgroups of Thomases is carried out in the context of consumer complexes and microcomplexes;
The number of types and varieties of goods within individual consumer complexes and micro-complexes is determined;
A specific assortment list of goods for a given store is being developed, offered for sale to the customer base served /17, p.138/
The formation of the assortment is preceded by the development of an assortment concept by the enterprise. It represents the targeted construction of an optimal assortment structure and product offering, while taking as a basis the consumer requirements of certain groups and the need to ensure the most efficient use of raw materials, technological and other resources by the enterprise in order to produce products at low costs /8, p.210/ .
The assortment concept is expressed in the form of a system of indicators that characterize the optimal possible development of the production range of a given type of product. These include: a variety of types and varieties of goods, the frequency of updating the assortment, the level of price ratio for goods of a given type, etc.
The purpose of the assortment concept is to orient the enterprise towards the production of goods that correspond to the structure and diversity of customer demand.
Target orientation and the art of planning are manifested in the embodiment of the real capabilities of the enterprise into a certain combination of products that satisfy the buyer's needs and make a profit.
A typical cycle of assortment planning and its implementation includes a preliminary assessment of the concept, followed by the development of specifications based on consumer requirements, the creation of samples, testing the possibilities of their mass production, and market testing /8, p. 211/.
Assortment policy is the determination of a set of product groups that is most preferable for successful work in the market and ensures the economic efficiency of the enterprise as a whole. Assortment policy objectives include:
Satisfying consumer demands is one of the principles of management, which corresponds to the task of deep segmentation and differentiation of the market and ensures close communication with consumers;
Optimal use of technological knowledge and experience of the enterprise;
Optimization of the financial results of the enterprise - the formation of the assortment is based on the expected profitability and profit margin, which is more common in the practice of enterprises, but can be justified in case of a difficult financial situation, lack of alternatives, etc.;
Winning new customers by expanding the scope of the existing production program. This approach is quite conservative, since it is designed for short-term results and involves the sale of goods by finding new markets;
Compliance with the principle of synergy, which involves expanding the areas of production and services of the enterprise, interconnected by a certain technology, uniform personnel qualifications and other logical dependence /17, p.123/.
In a saturated market, manufacturers and sellers strive to meet diverse needs. When demand exceeds supply, commercial efforts are required to create consumer preferences, which is achieved, among other means, by increasing the breadth of assortment. Breadth acts as one of the criteria for the competitiveness of firms.
What is the consumer’s attitude to the breadth of assortment? On the one hand, the wider the range, the more diverse needs can be satisfied. On the other hand, with an extremely wide range of products, it is difficult for the consumer to navigate this variety, which makes it difficult to choose the right product. The assortment breadth coefficient (Ksh) is determined by the formula:
Ksh = Shd / Shb x 100%, (1)
where, Шд - real latitude;
Shb - base latitude
At the same time, increasing the completeness of the assortment requires trade workers to know the commonality and differences in consumer properties of goods of different types, varieties and names in order to inform consumers about them. Providing such information to the seller is the responsibility of the manufacturer and/or supplier.
It should be taken into account that an excessive increase in the completeness of the assortment can also complicate the consumer’s choice, so the completeness must be rational. Assortment stability is the ability of a set of products to satisfy demand for the same products. A feature of such goods is the presence of stable demand for them /30, p. 25/.
One of the ways to improve the assortment may be to update it. However, renewal is not always associated with improved quality of goods and greater satisfaction of needs. New products may have non-fundamental differences from previously produced and discontinued products, for example, changes in packaging, labeling, weight, price, or brand name. Moreover, sometimes in the production of new goods cheaper raw materials and simplified technologies are used, which is associated with a decrease in quality. Therefore, improvement and renewal cannot be considered the same directions in assortment formation /12, p.36/.
Harmonization of the assortment - quantitative and qualitative changes in the state of a set of goods, reflecting the degree of proximity of the real assortment to the optimal one or the best foreign and domestic analogues that most fully correspond to the goals of the organization.
In the Russian consumer market, this direction of assortment formation is relatively new and is expressed in the desire of a number of “elite” stores to form an assortment based on the model of well-known foreign companies.
In addition, this direction is typical for large firms, corporations, joint-stock companies with subsidiaries in different regions. As an example, we can cite the harmonized assortment of such companies as “Russian Bistro”, “GUM”, etc. The choice of one direction or another requires knowledge of the factors influencing the formation of the assortment /12, p. 36/.
Thus, the success of forming a product range directly depends on the sale of goods. First of all, it is determined by their compliance with the demand of the population, the dynamism of which is constantly increasing under the influence of growing customer demands, fashion, market conditions, etc., so the response to changes in demand must be very fast. In such conditions, it is difficult to obtain reliable information about demand, and the likelihood of errors in its assessment is high.
Range- a nomenclature list of types and varieties of goods, distinguished by marketing indicators, a list of types and varieties of goods in a manufacturing or trading enterprise. An assortment is a list of objects offered for sale by a trading enterprise.
In accordance with GOST R 51303-99 “Trade. Terms. Definitions “an assortment of goods is a set of goods combined according to one or a set of characteristics.
Classification of assortment. The range of goods is classified according to the following criteria:1). Based on location, the product range is divided into groups:
- industrial range
- trade assortment
Trade assortment- a set of goods sold in the trading network, including industrial goods from various local manufacturers and imported goods. The trade assortment presented on the shelves of a trade enterprise determines the type of trade enterprise (universal and special, trade enterprises with a combined and mixed assortment) and the form of trade service. In stores of the same type with different retail areas, the assortment will vary significantly in the number of types of goods and product groups.
2). Depending on the breadth of product coverage, i.e. number of groups, subgroups, types, varieties, brands, types, names, the assortment is divided into the following subgroups:
- Simple assortment– this is an assortment of goods represented by such types that are classified according to no more than three criteria
- Complex assortment– this is an assortment of goods represented by types that are classified according to more than three criteria (shoes, clothing).
- Enlarged assortment– this is an assortment of goods that are combined according to common characteristics into certain groups of goods. Most often, functional or social purpose is used as a common feature.
- Species assortment is a set of goods of various types and names that satisfy similar needs. It is an integral part of the enlarged assortment. For example, children's shoes are an integral part of an enlarged range of footwear products.
- Branded assortment– this is a set of goods of the same type, brand names or belonging to a group of brand names. Such products satisfy physiological needs and are largely aimed at satisfying social and psychological needs. For example, prestigious brands of clothing, shoes, perfumes, cars, wines, etc.
- Expanded assortment- This is an assortment of goods represented by varieties of goods. A variety is a collection of goods of a certain type, distinguished by a number of particular characteristics. Thus, signs of dividing types of clothing into varieties are style and complexity of processing.
- Main assortment – a nomenclature list of types and varieties of goods determined by the seller as core for the organization and focused on the target group of buyers chosen by the company, which are profit-generating for the company.
- Related products– this is a set of goods that perform auxiliary functions and are not core to a given organization. So, for a shoe store, the accompanying assortment is shoe care items, in a grocery store - matches, soap and other household goods.
- Mixed assortment is a set of goods of different groups, types, names, characterized by a wide variety of functional purposes. A mixed assortment is typical for stores that sell food and non-food products and target a variety of consumer preferences and target groups.
- Rational assortment- this is a set of goods that most fully satisfies realistically justified needs that provide maximum quality of life at a certain level of development of science, technology, and technology.
- Optimal assortment is a set of goods that satisfies real needs with the maximum beneficial effect for consumers with minimal costs for their design, production development and delivery to consumers.
Key assortment indicators:
- breadth of assortment;
- assortment structure;
- assortment list;
- rationality of assortment;
- harmony of assortment.
Completeness of assortment- this is the correspondence of the actual availability of types of goods to existing demand, this is the ability of goods of a homogeneous group to satisfy similar needs.
Depth of assortment-– the number of varieties per product article, the number of products in one assortment group.
Assortment stability is an indicator characterizing fluctuations in its completeness and breadth over a certain period of time.
Novelty (updating) of the assortment- this is the ability of the assortment to satisfy changing needs through new products. The novelty of the assortment is characterized by two indicators: actual renewal and degree of renewal.
Breadth of assortment– this is the number of species, varieties and names of homogeneous and heterogeneous groups.
Assortment structure– this is the ratio of groups, subgroups, types and varieties of goods in the store’s assortment. The assortment structure is characterized by breadth and depth. The structure of the assortment is of decisive importance when organizing its formation in the store.
Assortment list– this is the minimum acceptable number of types of consumer goods that determine the profile of a retail trade organization.
Rationality of assortment is the ability of a set of goods to most fully satisfy the realistic needs of different consumer segments.
Harmony of assortment– this is a property of a set of goods of different groups, characterizing the degree of their proximity to ensure rational distribution of goods, sales and (or) use.
Assortment management is an activity aimed at achieving the requirements of assortment rationality. The fundamental controls are:
- formation of assortment;
- establishing the level of requirements for indicators that determine the rationality of the assortment.
Formation of assortment– this is the activity of compiling a set of goods that allows you to satisfy real or predicted needs, as well as achieve the goals defined by the management of the organization.
Assortment group- enlarged presentation of the assortment, grouping goods into separate product groups according to a number of characteristics: production method, purpose, design features, etc.
Cost-effective assortment- an assortment product list, which in its entirety ensures that business entities receive the planned amount of profit, i.e. a certain excess of income over costs of selling goods, tax deductions.
Assortment policy- determination of the assortment that is most preferable for successful work in the market and ensuring the economic efficiency of the enterprise as a whole.
Number of impressions: 45226
An assortment of goods is a set of their types, varieties and varieties, united or combined according to a certain characteristic. The main grouping characteristics of goods are raw materials, production and consumer goods. There are industrial and commercial assortments of goods.
The production range is the range of goods produced by industrial and agricultural enterprises, as well as other manufacturers. As a rule, enterprises producing goods produce a narrow range of goods, which allows them to introduce advanced production technology, improve the range of goods produced, and improve their quality. Therefore, the goods they produce require further sorting, taking into account the requirements of trade, whose enterprises concentrate a wide range of goods, which is a combination of products produced by a wide variety of manufacturers. Such sub-sorting, or transformation of the assortment, is carried out mainly at wholesale trade enterprises, through which the bulk of goods of a complex assortment pass. Some food and non-food products are sorted directly in stores and other retail establishments.
The trade assortment is a range of goods to be sold in a retail chain. It includes a range of goods produced by many enterprises and is divided into two product sectors: food and non-food products. Each industry is divided into product groups, which include goods that are combined according to a number of characteristics (uniformity of raw materials, consumer purpose, degree of complexity of the assortment).
Product range is a certain set of various goods included in trade.
In stores, a relatively narrow product range is transformed into a wide trade range, which includes goods from various specialized production enterprises. The production of products in a market economy, from a marketing point of view, should be aimed at satisfying the diverse needs of the population, taking into account local, national and climatic conditions, therefore, primary attention in stores should be paid to the formation of a product range, as a process of establishing such a range of goods that develops over time , which would satisfy the product structure of the population's demand.
Assortment policy is the art of making decisions on an individual product unit, product group and on the entire assortment as a whole in order to achieve the company's goals.
Main goals of assortment policy:
- · Increasing sales by optimizing the assortment structure;
- · Increased inventory turnover;
- · Achieving a competitive advantage through a more attractive assortment;
- · Entering new markets;
- · Reducing costs associated with maintaining the assortment;
- · Formation of the company's image by positioning assortment product units.
Customer needs are changing rapidly, so the company is forced to constantly update its product range, and this requires additional resources.
Fierce competition leads to the fact that a new product launched on the market does not have time to recoup the investment in its production and promotion.
Enterprises do not have an assortment management system in place due to the difficulty of forecasting changes in consumer demand and the lack of assortment optimization techniques.
Rice. 1
An assortment item represents a specific unit of goods - model, brand or size.
The product range consists of:
- · Product groups;
- · Product categories;
- · Product lines;
- · Product units.
Rice. 2
A product group is a set of goods and their types, grouped according to a certain combination, the most important of which is the similar purpose of the goods.
Product line (line) - a set of goods intended for the same customers or sold through the same sales channels or having the same price range.
The product range (nomenclature) is characterized by:
- · Length (saturation), showing the total number of product units sold by the company;
- · Width equal to the number of product groups that make up the assortment;
- · Depth, showing the number of options for each type of product.
Classification of product range types
By degree of importance for the enterprise:
The main assortment includes products that are in high demand. Selling, first of all, precisely these goods, which bring the greatest profit, is the goal of the enterprise. It is necessary to ensure the constant presence of the main assortment in the warehouse.
Additional assortment - includes products that complete the main assortment. These are complementary products, impulse purchases, and special occasion items that are not available in other retail outlets.
For example, consumables when selling office equipment; lamps, curtains, carpets in a furniture store.
Additional assortment may not always be present in the warehouse, and may vary by name, i.e. belongs to the category of variable assortment.
Depending on the number of product groups in the assortment:
Wide range - consists of many product groups, each of which contains a large number of products. The widest range is presented in hypermarkets (more than 100,000 items), supermarkets (up to 100,000 items), trading houses, and large wholesale companies.
Advantages of a wide range:
- · attracts various categories of buyers and increases their number;
- · the number of unplanned purchases increases;
- · allows you to more effectively manage profits by varying trade margins.
- · Disadvantages of a wide range:
- · additional equipment space is required;
- · overall inventory turnover slows down;
- · the complexity of accounting increases;
- · It is difficult to maintain the stability of the assortment.
Narrow assortment - consists of a small number of products from several product groups (3 - 5).
Advantages of a narrow range:
- · it is easier to maintain the stability of the assortment;
- · You can concentrate on meeting the specific needs of customers;
- · easier to carry out accounting and management
Disadvantages of a narrow range:
- · there is a high risk of not receiving the required profit if the demand for these product groups decreases;
- · Buyers may prefer sellers with a broad or specialized range.
Specialized assortment - consists of 1 - 2 product groups. The specialized assortment attracts those customers who want a wide selection of goods and receive qualified service and advice.
The advantage of a specialized assortment is the depth of the assortment, which provides a wide choice for the buyer.
Example. The company "ALSEL SPB" works in the field of completing equipment for heating, water supply and sewerage systems, has more than 3,000 items of products in a warehouse in St. Petersburg and more than 20,000 items in a central warehouse in Sweden. The company operates according to the European principle, when the warehouse and office are located in one place. Prices are higher than those of other sellers, but due to the wide range, significant savings are made on transportation, processing and delivery speed.
Depending on the number of similar products
Deep assortment - there are many options for similar or similar products (for example, different packaging of toothpaste, gels, elixirs). Advantages of a deep assortment:
- · a large selection ensures that the buyer is unlikely to leave without purchasing;
- · customer loyalty is developed.
Disadvantages of a deep assortment:
- · too much variety of the same product irritates the buyer;
- · sellers themselves are poorly versed in the differences between products;
- · the effect of “cannibalism” appears
Flat assortment - a small number of product varieties are presented. You should carefully select products, focusing only on the most popular ones.
Depending on the degree of product differentiation:
Simple assortment - consists of simple undifferentiated goods (rolled metal, vegetables, sugar, cereals, etc.)
Complex assortment - consists of basic, complementary, interchangeable goods or goods that, within one type, have their own internal classification according to various criteria (footwear: styles, sizes, colors, decorations, etc.)
Mixed assortment - it presents completely different product groups: food, household chemicals, personal hygiene products, newspapers, etc.).
Product range – a group of products closely related to each other
· or due to the similarity of their functioning (sporting goods, food, cars),
· or because they are sold to the same customer groups (children's products),
· or they are sold through the same types of retail establishments (supermarkets, department stores),
· or they are sold within the same price range (discount store).
This definition lists all the principles for forming a product range. From this point of view, the Revlon company has a range of cosmetics, the General Motors company has a range of cars, the Samson meat processing plant has a range of sausages and meat products, the railway has a range of transportation services, both freight and passenger.
The product range has two main parameters– width and depth.
Width product assortment - the number of assortment groups offered on the market. This is how General Motors produces and markets trucks, cars and motorcycles. These are the three main product groups of this company.
Depth of product range - number of positions of each product group. The General Motors company has the following positions in the “passenger cars” group: the Chevrolet brand is aimed at the market of people with average incomes and is produced in mass quantities. The Pontiac brand is distinguished based on age segmentation; it is aimed at young people, people under 35 years of age. The Buick brand is aimed at the high-income segment. There are a number of other brands, but these three represent the core of the General Motors product range. Various combinations of the product range parameters given here - width and depth - give four options, each of which can be used in certain market conditions.
The main options for the product range, based on various combinations of width and depth.
1. The range is narrow and small . The company produces one or two product groups, and within each group there is a small number of items. A classic example of a narrow and small assortment is the Coca-Cola company until the early 70s, when it produced one assortment group, basically it still produces it, and within this assortment group there was only one drink, Coca-Cola.
2. The range is narrow and deep. Basically here too one or two product groups, but each of them contains a significant number of positions. The same Coca-Cola company now. Now it produces a large number of varieties of soft drinks. These drinks are distinguished both on the basis of segmentation by tastes and preferences, and on the basis of age segmentation, etc.
3. The assortment is wide and small. Here Many product groups are produced, but each of them contains a small number of positions.
4. From a marketing point of view, the best option for achieving your marketing goals is deep and wide range . An example here is the Proctor and Gamble company, which has several product groups: detergents, bar soap, deodorants, creams, hydrogels, toothpaste, baby diapers, and in each group there are many positions. Thus, about one and a half dozen types of toothpastes are produced. But it should be noted that it has both advantages and disadvantages.
Advantages of a wide range:
· allows you to diversify products, those. focus on different needs of people, offer satisfaction of different needs. In this way, within the limits of the served market, it is possible to sell more and more products and offer a more comprehensive satisfaction of product needs.
