Drawing up an assortment and raw material matrix. BCG matrix: construction and analysis in Excel on the example of an enterprise
“Hello reader. Today we will talk about the range. And more precisely about how 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 assortment matrix- its compilation will be discussed in this article.
The article turned out to be not at all small, but in a nutshell this component of the work of a marketer cannot be described. So have some patience.
What is an assortment matrix and what is it eaten with?
Assortment matrix - in fact, this is a kind of nomenclature list of absolutely all product names sold in a particular store, or a chain of retail stores (if the assortment matrix is formed for the entire network), compiled taking into account the characteristics of this store (chain), as well as the assortment policy of the organization in in general.
Summarizing, the compilation of an assortment matrix is an integral part of the assortment policy of a trading company, regardless of its organizational structure.
In general, the compilation of an assortment matrix in a retail store cannot be an end in itself, but should be the result of the formation of an assortment for a specifically designated point of sale. However, in any case, the assortment matrix is created only after a clearly defined trade policy and strategy of the company. Ideally, the category manager (supply department manager, buyer) should be responsible for the creation and implementation of the assortment matrix, since only he knows where and what goods can be purchased.
Naturally, the assortment matrix is by no means created by the forces of one categorizer. AT this process it is desirable that the marketing department, pricing and management team, represented by commercial director. However, their role is more to provide information on a particular product or product group, but the decision should be for the category manager.
Stages of compiling an assortment matrix
Stage number 1. Before compiling a product nomenclature, you need to clearly understand the format, dimensions 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, area of the store, its shape;
- its location (district, accessibility by buyers, presence of competitors, etc.);
- socio-economic features of the area where the store is located;
- estimated display of goods and commercial equipment.
Based on these data, the format of the retail outlet is determined (discounter, self-service store or off-the-shelf trade, its specialization, etc.). An understanding of the preferences of buyers in terms of the breadth of the line is also being formed. Positioning is being done. In other words, the compilation of the assortment matrix and, as a result, the purchase of 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 a disorderly one (if only the shelves were full), and then methods of selling it to their customers are developed. Which is fundamentally wrong in today's competitive environment.
Stage number 2. We segment buyers based on a study of current demand. This stage allows us to understand who our client is, what habits, requests and needs he has.
Methods of influencing the target audience, advertising and marketing concepts are determined. At the same time, on what basis these segments are created, it does not really matter. The main goal here is to understand who our client is and what their expectations are. The result of this stage of compiling the assortment matrix should be the choice of a key segment of buyers, to which the main efforts will be directed. There are several ways to obtain this information. As one of the options - a survey of potential buyers.
Stage number 3. We compare our own assortment with the assortment of competitors. At this stage of compiling the assortment matrix, it is necessary to understand who our competitors are and what position our retail outlet will take relative to them.
A large number of competitors, in principle, is not required, 3 - 5 will be 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 number 4. We determine the main groups of goods presented in the store. Having decided on the location of the outlet, the preferences of customers, the depth and breadth of the competitors' assortment line, a vision of their own assortment is formed.
Based general concept store, the price level for the main groups of goods is fixed. Will our company be priced above or below the market, or something in between. Having understood the price level, we begin to look for suppliers for the groups of goods being sold.
Stage number 5. We break the range into categories. Perhaps this is the most interesting part of this task, at least for a marketer. Based on the preferences of the buyer, as well as his own knowledge of the psychology of the buyer, the marketer begins to break down key categories into subcategories and then into individual items.
Why the most interesting? Yes, for one reason, scattering the assortment into categories and subcategories, one must proceed from the consideration of the buyer. Those. practically start thinking like a customer who comes to our store thinks. Why did he come? Behind the TV, so that it was huge, or behind the Samsung TV with a diagonal of 110 ', the color is gray. Or maybe he just needs a TV in general, and in order to meet 5,000 rubles. And so that the client does not leave without a purchase, the assortment of the store must be filled, based on key factors target buyer.
Stage number 6. Understanding the balance of the company's assortment. At this stage of compiling the assortment matrix, we analyze the balance commodity items and categories. It is necessary to balance the assortment both in depth and in width, based on 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 goods - work on the company's image, and are more related to goods of impulse demand, i.e. those that grab, without hesitation, on the way to the checkout;
- priority products – allow you to maximize profits and attract the main flow of customers. For such goods, the buyer can specially come to our store and, having not found the right product, leave without buying anything;
- basic goods are also able to provide a flow of customers and have a high turnover. The buyer also comes for these goods on purpose, knowing that he will definitely find what he needs;
- seasonal goods - aimed at the rotation of the assortment and attracting new customers;
- convenient product categories - form a loyal attitude of buyers.
Stage number 7. Final compilation of the assortment matrix, formation of the final document. This is The final stage, where 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 the buyer's choice and analysis is recorded in one single array. The assortment minimum (i.e. the basis of the assortment of any store) is calculated for a specific retail outlet. It is worth noting that there should not be a deficit at this minimum in principle. That's why it is a minimum, only lower - a coffin.
Ultimately, in order for the assortment matrix to be understandable, realistically applicable in practice and convenient to use, three key rules must be observed:
- customer focus;
- shop specifics;
- optimization and nuances of assortment deliveries 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 often turn out quite differently. The store has been operating for a long time, a certain circle of buyers has been formed and a decision is made whether we should change the assortment, well, it started. Below is an algorithm for creating an assortment matrix, so to speak from life, as I happened to do. In fact, it was necessary not to start everything from scratch, but to redo what had already been done once.
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 according to 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 to break down the available assortment into price segments. Of course, the number of price segments can be anything, but I divided it into three equal pieces (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 fix the number of positions, sales data.
Fourth. We analyze the received data. As a result, an understanding should come of which combination of “price segment” / “property of the product” is saturated or, on the contrary, is not filled in the context of the current assortment.
Fifth. We compile a similar table for selected competitors. I personally selected three competing companies and fixed the number of presented assortment in their price lists by key parameters. In other words, we create a similar matrix in terms of the number of positions for our competitors.
Sixth. In accordance with the adopted strategy of the company, we conclude that the assortment will be reduced or expanded. Also at this stage, a decision is made to fill in the empty intersections of the segments.
This is where my mission ended, all the data was agreed with the category manager and transferred to the internal database management department to make changes to the program and fix positions. If the manager wants to expand the assortment in any of the fixed segments, the program will not allow it.
On this, perhaps, I will end. I think that now, reader, you have a certain understanding of what the assortment matrix is and what key points should be taken into account when compiling it.
An assortment or product matrix is a list of stock items approved for mandatory sale to a specific customer. The assortment matrix is created taking into account the format and location of the client.
Formation of the assortment matrix in Mobi-S, this is an additional service feature to facilitate the creation of a list of sales of goods for a selected customer. Many large companies form lists of goods required or recommended for sale in a certain store format. The point of sale format is a general name, a category that characterizes customers according to some parameters. A commodity matrix is simply the name of a list or group of goods collected according to some attribute. After the matrix is generated for the goods, it is also assigned to the client. When an agent visits a client, he sees in the list of products highlighted in blue products recommended for sale this client in the context of outlet formats.
In Russian marketing, in addition to the name "assortment matrix", you can find its following names: product matrix, product range matrix, product matrix.
An example of an assortment matrix
Mobi-S uses the creation of an assortment matrix of goods and binding to customers using outlet formats. Several formats are specified. Each format contains its own list of products. A client can only be assigned one point of sale format.
Step 1 Creating a list of outlet formats
Step 2 Product matrix, we distribute goods by TT formats. One product can be in different formats. note Item 3 can be sold in like in a channel Tent also in the channel Supermarket.
Step 3 We assign the TT format to the client. One client - one format.
This is how our assortment matrix will look like as a result.
When choosing a client Client 1 in the list of products, products included in the same outlet format as the client will be highlighted in blue.
Formation of the assortment matrix and its use in Mobi-S
In this video, I will show you how to use an automation program mobile commerce Mobi-S to create a commodity matrix and how it can be used.
For Mobi-S, the formation of a commodity matrix is in dialogue Setting up outlet formats integration module. The procedure for setting the product matrix is similar to that described above. Create TT formats, distribute goods and assign your TT format to the client.
After you have created an assortment matrix, you can use it for the purposes of automating mobile commerce. The product matrix is loaded into the PDA at the time of the request.
Create any document. Select the client for which the product matrix is configured. Go to the tab Products. Press the filter selection button (button with a funnel, at the top left above the list of products). In the dialog that opens, select the item Present in the sales channel.
After using this filter, only products from the assortment matrix will remain in the list of products.
Planned matrix
The planning matrix is an extended version of the assortment matrix function. The main difference is the fixation of matrix changes over time. With this function, you can assign a different assortment matrix of goods to a customer for each day, and you will have a history of changes in this matrix. The planned matrix has priority over the matrix specified through outlet formats. If both types of matrices are specified, then only the item from the planned matrix will be displayed on the mobile device.
Essence is revealed network principle organizations retail as a factor in increasing the competitiveness of business, the history of development network trading in developed countries and in Russia, building retail retail chains, organization of management, as well as the specifics of the formation and management of the assortment, organization commercial work and personnel management in retail chains.
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 it is necessary to revise the assortment. A large number of decorative elements per collection or a large share of low-selling collections leads to a disproportionate profit of the factory's shares in the assortment. It is necessary to exclude the Lugo factory, the Yekaterinburg Ceramic Products Plant and the Sokol plant from the analysis, the assortment of which is mainly floor collections without decorative elements. Among the clear leaders, the Furla, MetrPol, Gamini and Dom Decor factories stand out. These shares of factories in profits are much larger than their share in the assortment. Among the obvious outsiders are the factories “Im. May 1" 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 profits and in stocks. Suppliers whose share of profits is higher than their share of inventory are turnover contributors.
Turnover donors are goods or suppliers that invest in the customer's turnover more than 10% of their monthly sales volume, i.e. provide a loan in a larger amount than is necessary to fill the goods logistics system the organization that buys it. Suppliers of this group provide such a delay in repayment of the loan that during this time the customer manages to sell the goods, 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-term partners of the company, or by new suppliers of unknown goods who agree to any conditions for the distribution of their goods.
To increase the turnover in the direction, it is necessary to reduce the share of suppliers - turnover acceptors.
Turnover acceptors are goods or suppliers in which the customer himself has to invest 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 purchase them on the proposed terms: shipment on an advance payment or the provision of a small loan insufficient for the full maintenance of the cargo. The main thing here is not to overfulfill the sales plan, since any increase in sales leads to an additional delay in the investment resource.
In 2003, the donors of turnover were the Gamini, Drago, Lugo, EkZKI, Dom Decor, Top Keramik factories. All other factories were turnover acceptors. Top Keramik's high turnover is associated with a short functional cycle of logistics, it is the exclusive manufacturer of TC "Uyutny Dom" and sells its range only through the chain of stores of TC "Uyutny Dom". 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 the goods in transit. Table 9.12 shows the profit structure and inventory by suppliers in the category "ceramic tiles".
Table 9.12
The structure of profit and inventory by suppliers in the ceramic tile category, %
2. Analysis of the existing assortment matrix. The product portfolio in the "ceramic tiles" direction was formed in April 2005 and was fully implemented only in retail stores TC "Uyutny Dom", however, the 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 color of the plinth in the collection with decorations 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 tile and special elements will be a series.
For a correct analysis, a 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, which interferes with the analysis. The segmentation results are shown in tables 9.13, 9.14, 9.15.
Table 9.13
Selection 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 goods are divided 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 for Moscow stores. Each series is assigned a classifier: “type of tile”, “price”, “color”, “design”, and for wall tiles, its place on the exposition is also indicated. The assortment is filtered by these indicators, and the amount of profit per segment is calculated.
The most significant indicator is the “price”, and its significance grows as the cost of tiles becomes cheaper and decreases significantly when the price rises above 30 rubles per square meter. m. The significance of the indicators "design" and "color" is approximately the same, but less significant than the "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)
An analysis of the existing assortment matrix showed an excess of collections in the segment from 18 to 22 rubles per sq. m. m and high profitability of the segment from 12 to 18 rubles per sq. m. m. In addition, the segment over 30 rubles per sq. m. should be recognized as promising. m. At a retail price of 30 rubles / sq. m. m, the buyer can be offered a beautiful tile that will look expensive. Segment from 22 to 30 rubles/sq. m is unpromising due to the fact that for such a price it is technologically impossible to make a really interesting design, and similar tiles can be bought cheaper. After a more detailed analysis, we can say that the segment from 18 to 22 rubles per sq. m is also promising, there are highly profitable collections, but their selection should be more careful. (The principles for constructing a basic matrix were outlined at the beginning of this chapter.)
Table 9.17 shows what the new 2007 assortment matrix will look like.
Table 9.17
New assortment matrix 2007 (example 1)
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 available color palette of the assortment matrix shows that the most promising colors for floor tiles are the colors of the beach, sunset, coffee.
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 tasks for the direction for 2007 are to create an assortment recognizable by the buyer and accustom him to the idea that the TC "Uyutny Dom" is a chain of stores and pavilions where one has to go to buy tiles.
Based on the above data, a number of steps in the development of the category can be proposed.
1. Increasing the range of tiles in the “medium” price segment, with the involvement of 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. Increase in the assortment in the price segment "expensive" due to interesting in design, unusual and fashionable, trendy collections.
3. Replacing the assortment in the “medium-high” price segment with more salable designs and, as a result, an increase in the turnover of the series.
4. A further increase in profitability is planned due to an increase in 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 assumed 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 indicator of warehouse stocks.
5. Introduction new scheme new purchases:
Reducing the amount of the first purchase, within three to four months after the new items are pasted on the store’s exposition, a deficit in the collection is allowed; only after four months, when the potential of the novelty will be determined, the level of stock balances increases to three months of turnover;
Acceleration of assortment renewal (20-30% assortment change per year is assumed).
6. By increasing the speed of updating the assortment, a temporary competitive advantage will be obtained, therefore, a slight increase in the margin 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.
The assortment of store products should be ordered not only on the counter or in the website catalog, but also in the head of the marketer. For a convenient systematization of goods offered for sale, experts recommend compiling assortment matrices. Matrices help to choose from an infinite number of product offers only the most necessary, and to do this in a timely and systematic manner. What is a matrix?
An assortment matrix or commodity matrix is a list of all commodity items divided into categories and groups. Working without an assortment matrix can be compared to a trip to a hypermarket where there are no signs, all goods are mixed and baby food stands on a shelf next to the polish. Not very convenient.
Compiling a product matrix will require the time and effort of marketers, category managers, and management staff. But it's worth it. The process of creating an assortment matrix includes several preparatory stages.
1. Determination of the format, concept and features of store positioning
Before proceeding to the compilation of the assortment matrix, it is necessary to develop the concept of the enterprise in detail, to understand what, to whom and where you will sell. Companies often do things differently: they randomly buy goods, and then they look at who comes to them and what they buy. In a tough market competition this is an unfortunate approach leading to losses.
You need to start with the concept and positioning. At this stage, determine:
- Floors, store size;
- Format (discounter, supermarket, hypermarket, etc.);
- Location (distance from the center, accessibility to customers, presence of competitors);
- Socio-economic features of the location area (who lives here - students, pensioners, businessmen or families with children, what they buy).
A successful business needs to be customer-centric, so it's helpful in the conception and positioning process to find out how future customers would like your store to be. To do this, our resource has a questionnaire template for collecting ideas and suggestions.
When you decide on an area for opening a new store, be sure to interview the residents of this area. So you can find out where they prefer to go shopping and what dictates their choice. This will help determine the exact location of your outlet. The advantage of surveying at this stage is that in parallel you will get to know your competitors and will be able to roughly determine the target audience.
2. Consumer demand research and consumer segmentation
You already have an idea of who your customer is, it's time to segment your customers. There are regular customers, there are seasonal ones, and there are those who turn out to be casual visitors. You should not focus your offer on everyone, you need to focus only on regular visitors, they will make sales for you.
3. Product matrix: comparison of own assortment with that of a competitor
You also need to know who you are competing with. Then study their range of products, prices, advantages and disadvantages. It is from this that one should build on, forming an assortment matrix and pricing policy. You have to offer people what they still lack.
For example, if there are many outlets with a large assortment around, but each category does not contain something exclusive, it makes sense to make the assortment of your store not so wide or even leave only a few product categories, but deepen them and specialize in them. Let there be something unique in your product matrix in each product group, for example, a rare foreign product.
Often competitors are in completely different areas. For example, if you sell vacation packages, you need to show the client that it is better to spend money on a beautiful trip than buying a sofa in the furniture store next door.
You can also study the competitive environment with the help of a survey of potential customers.
4. Determination of the main groups of goods of the assortment matrix
Now you need to highlight the main groups of goods in the matrix. Choose the products that will be most relevant in the area for your target audience and which will make your offer more profitable than those of competitors.
Let's say we are talking about the grocery store, which is located next to the campus. The assortment in neighboring stores is wide, but the prices are not at all student-friendly. To attract buyers, your assortment should include products that are often bought by students, and at favorable prices. Most likely, the assortment of the commodity matrix will include ready-made meals, salads, pastries, chips, sausages- everything that is satisfying, tasty, inexpensive and does not require cooking.
5. Deepening the product range
Next, you drill down into each product category of the matrix, highlighting subcategories. An important point is the choice of brands. Focus on prices and consumer demand.
So, you have decided on the concept, format and location of the store, segmented the market, identified the main groups of matrix products, detailed them and selected trade marks. It remains to carry out the final classification of the commodity items of the matrix, and you can begin to compile the assortment matrix!
- unique - create a favorable image and memorability of the store, diversify the assortment, belong to the category of impulse purchases;
- priority - provide profitability and attract the main flow of buyers;
- basic - provide a high turnover of funds and attract a flow of buyers;
- periodic (seasonal) - designed to update the range, attract and retain the buyer;
- convenient - provide a constant flow of customers due to the formation of consumer loyalty.
In its finished form, the assortment matrix is a table that indicates: product group, product category and subcategory, local code, item name, supplier, category manager, product role, whether it is included in the assortment minimum (mandatory part of the assortment, goods whose shortage unacceptable).
A small fragment of the table for our student store
The assortment matrix will simplify the work with a large amount of data. Thanks to her, you will have before your eyes up-to-date information about goods, you will be able to plan updating and improving the assortment, change commodity items depending on consumer preferences. For example, if the demand for corn salad falls, you can move it from the basic category to the periodic category or replace it with a new item.
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Formation of the assortment matrix grocery store or a clothing store helps to arrange the nomenclature, taking into account the profitability, cost of each type of product. Reduces losses, increases the profit of the outlet, regardless of the type of management, organizational and legal structure.
The process of developing a matrix is laborious, obeys the rules, takes place sequentially, in 7 steps, ideally, it should take place before the opening of a retail outlet.
Step 1: developing a strategy
Work begins with the choice of format, depending on:
- the size of the trading area;
- location;
- available financial resources;
- economic, geographical, social features region.
Based on the results of the analysis of these factors, they choose outlet format: self-service, over the counter, specialty or department store, exclusive boutique or discount center, etc.
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Example: the chosen format is a universal discount center (existing networks: Pyaterochka, Magnit, Kopeyka, etc.). The development strategy is to open 5 stores in the city, located in residential areas, gradually occupy 25% of the regional consumer goods market.
Positioning - an inexpensive store where you can buy products, goods daily demand, household chemicals, etc. Gradually, customers are accustomed to the idea that it is cheaper to go to this particular store for groceries or household goods.
When the basic characteristics of the store are determined, you can begin to study potential buyers.
Step 2: portrait of the target audience
Store visitors can be divided into several groups by gender, age, social status, motivation and others. This process is called segmentation, it is needed to draw up a detailed portrait of the target audience, determine its needs, expectations, and behavioral patterns.
Example: store visitors building materials divided into 2 main segments, 3 secondary. These are corporate clients (construction, trade organizations), individual buyers, the latter are divided into:
- "homemade": middle-aged men, middle-income, independently doing repairs;
- "middle managers": men and women of middle age, wealthy, doing repairs with the help of specialists who review the proposed samples;
- "onlookers": went to the store to warm up, for the company, by chance, etc.
The breakdown into groups helps to formulate which segment will make up the target audience, to estimate the percentage of revenue brought by the group.
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If the hardware store is focused on "homemade", the range of building mixtures, materials of a cheap price group, with a predominance of inexpensive fasteners, hardware, a meager selection of finishing materials.
If the goal of "middle managers" is expensive goods, an extensive range of high-quality finishing materials.
Step 3: Research Your Competitors
The store does not exist in a vacuum, there are similar outlets with similar prices, a list of commodity items. To evaluate their advantages, to see the shortcomings will help a comparative analysis:
- determine 3-5 main competitors closest in format, assortment, pricing policy;
- highlight the advantages, disadvantages, nomenclature of competitors;
- compare the cost of similar products;
- estimate the likelihood of new competitors appearing in the next 3-5 years.
Example: the assortment matrix of a clothing store revealed that outlets of a similar format offer prices 5-10% lower, and for certain product groups (women's knitwear, home wear) they make exclusive offers from manufacturers 20-30% lower than the average market price.
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In this case, it is worth reviewing the store's policy: focus on selling product groups that are not represented by competitors (for example, knitwear), change the store's profile.
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In addition to direct competitors, outlets have indirect ones. Buyers choose where to spend their money: to buy a new household appliances or clothes, repair or rest.
Step 4: Determination of the pricing policy
Before looking for suppliers, select product groups, determine the level of prices for them: average market, below or above the market. Knowing the desires and preferences of the target audience will help to make a choice.
Example: a grocery store located in a residential area will focus on everyday goods at average market prices or slightly above the market. A large supermarket where people come specifically to buy groceries for the week - a wide range of products with low prices. Outlet near the campus - preference for semi-finished products, products fast food at average market prices.
The list of goods, the price level are determined in these cases not by the desire of the store owner, but by the preferences of the target audience. Try to diversify price categories: even in a discount store, exhibit goods of the same type that differ in price by 10-15% and quality characteristics.
Step 5: Categorization
Break the product group into categories, subcategories, individual items necessary, because buyers come to the store not for a group of goods, but for a specific purchase. They go not for dairy products, but for 2.5% fat milk (often from a certain manufacturer) or 20% sour cream. It is impossible to predict the number of subcategories, it depends on the product group.
When doing a structured analysis of a product group, be guided by the logic of buyers.
Example: A discount grocery store offers customers well-known brands, choosing items with low prices. So, you need cheap milk with a fat content of 1-4.5%.
The supermarket offers more variety with a wide price range. Buy yoghurts of advertised brands and little-known brands that cost 10-15% less.
The boutique maintains a list of well-known brands, regardless of the cost. Make sure that the assortment is complete, there are always goods of the brands declared in the advertisement (on the sign).
Step 6: analysis of the nomenclature for balance
The fifth step is preparatory, after which it is necessary to analyze categories, subcategories in two directions: depth, width. The more revenue a product group brings, the more items it contains (depth).
For the assortment matrix of a clothing store, an example of this approach: 65% of revenue comes from women's business suits worth 2000-5000 rubles. Accordingly, it is necessary to diversify the product group (business suits) with a trouser, skirt version of different colors and fabrics. Supplement it related products: blouses, accessories, expand the group.
Knowledge of the typical roles of product groups helps to analyze, change the width, depth of the nomenclature:
- rare: they work for the image, the memorability of the store, fall into the number of impulse purchases;
- main: bring from 60% of profit, attract visitors;
- basic: "workhorses" with high turnover, bringing 40-60% of revenue (not to be confused with profit);
- seasonal: diversify the assortment;
- comfortable: included in complex purchases (in a shoe store, 70% of women will take socks, stockings, tights).
| Target | Product categories | Subgroups |
| Attracting visitors, creating a constant flow | Main, basic, seasonal | Well-known, advertised, trusted by buyers |
| Maintaining the speed, volume of money turnover | Basic, comfortable, seasonal | Cheap, mass, seasonal |
| Profit | Major, rare, seasonal | New, exclusive, status |
| Retain customers | Seasonal, Rare, Basic | Inexpensive, seasonal, unique |
| Increase the average check | Comfortable, basic | Complex or voluminous |
| Influence the emotional background, cause a desire to buy | Main, rare, comfortable | Novelties, unusual (gift sets for the holiday, goods with unusual packaging, etc.) |
| Formation of the image of the store in the eyes of customers | major, rare | Well-known, trusted |
Having decided on the goal, choosing a category, we proceed to the final step.
Step 7: compiling an assortment matrix
There is no single standard for the assortment matrix, trade point develops it "for himself", taking into account the peculiarities of the work, guided by the logic of a potential buyer, adhering to the rules:
- Focus on the buyer: do not use abstract definitions (middle-aged people, middle-class people), but clearly defined categories. Consider age, gender, marital status, average income, area of residence, etc. The more characteristics, the more accurate the portrait of the buyer.
Example: clients are single students aged 18-25 with an income of 15,000-25,000 rubles per month, who prefer to buy semi-finished products, food products.
- Consider the specifics of the location of the outlet, the surrounding reality. A supermarket in a residential area of a metropolis and a self-service store in the center of a workers' settlement are surrounded by different social strata that differ in mentality, income level, and taste preferences.
This point is important for large networks with the head office in Moscow (another big city), opening branches in regional and district centers. The assortment matrix of the head enterprise changes by 70-90%, adapting to the realities of the Russian hinterland.
- Improve your relationship with suppliers. When choosing them, consider the demand for the category of goods: the popularity of local brands or advertised ones. Choosing a supplier of well-known local brand products will become competitive advantage in the regional center (everything is fresh, does not have time to deteriorate - the logic of the buyer).
Residents of the Moscow region, who prefer to work in the capital, buy goods of well-known brands, not paying attention to local manufacturers (a consequence of aggressive advertising).
An important factor in choosing a supplier is the safety of commodity items from the assortment matrix of the store. That is: compliance with storage conditions during transportation, delivery of products with long sales periods, etc. The buyer must be sure: when purchasing in your store, he buys quality goods.
When the goods are selected, it is necessary to make a pivot table indicating:
- trade group names (meat products);
- category name (sausage products);
- price range (cheap, medium, expensive);
- trademark;
- position names;
- type of packaging;
- packing weights;
- the name of the supplier;
- the names of the person responsible for the purchase;
- article (code);
- the number of copies sold, the amount of revenue, profit as a percentage;
- group on ABC- and XYZ analysis product range.
The larger the outlet, the more characteristics the matrix includes. Assortment matrix of a grocery store, an example of a template to fill in:
| Range | Name of article | Internal code cl-tion | Character 1 | … | Har-ka N | Unit from | Producer/supplier | Country of origin | Self | Price | Competitor price 1 | … | Competitor price N | Availability | Results of ABC analysis | Product role | Eq. 1 | Eq. report 2 | … |
| Category 1 | |||||||||||||||||||
| Subcategory 1.1 | |||||||||||||||||||
| Segment 1.1.1 | |||||||||||||||||||
| Subsegment 1.1.1.1 | |||||||||||||||||||
| Article 1 | |||||||||||||||||||
| … | |||||||||||||||||||
| Article N | |||||||||||||||||||
| Segment 1.1.2 | |||||||||||||||||||
| … | |||||||||||||||||||
| Subcategory 1.2 | |||||||||||||||||||
| … | |||||||||||||||||||
| Category 2 | |||||||||||||||||||
| … |
It is difficult to work with the resulting table, consisting of tens, hundreds of items. Therefore: highlight the assortment minimum, the positions of the second plan, the third in different colors. Bring to the attention of the purchasing department that the shortage of goods from the minimum is unacceptable, punishable by fines, appoint a responsible person.
Summarizing what was said in the article: the assortment matrix must be compiled before the start of the store, updated every 3-6 months. It is based on customer preferences, sales analysis (use information from competitors or your own). The matrix helps to determine the assortment minimum, ways to increase profits, ways to reduce costs.
