What is a product assortment?
Product assortment means the different types of products that a business provides to consumers.
There are 4 main characteristics of a product assortment:
- Breadth: the total number of product lines a company produces or a retailer carries.
- Length: the number of products in a particular product chain or line.
- Depth: the different versions of the same product that may exist in each product line.
- Consistency: The degree to which the product lines relate to each other.
These 4 characteristics will form the basis of your product assortment strategy.
What is the goal of an assortment strategy?
The goal of a product assortment strategy is to create the ultimate product mix to maximize your product profits and market share.
What are the most important considerations choosing a assortment strategy?
What is my target group?
Who is it that you want as your target customer? Think this through and the more detailed the (demographic) information, the better. This will help you set up and sell your product in such a way that it will attract the customer you want. Very important: is your customer a trendsetter? And therefore does he buy a certain product before the masses do? Or is your customer an late adaptor and needs recommendations from friends or reviews on the Internet before buying a certain product? This information will help market your product in the right way.
Focus on sales or margins?
Higher-priced items will generate lower sales volumes than low-priced items but will gain you more gross profit since they have bigger margins. Always determine what mix of "high-volume, low-margin" and "low-volume, high-margin" would work for your target group.
What are my regular basis items?
Determine what the products are that your customer needs on a regular basis. In fashion, this could mean easily affordable items such as underwear, socks, basic t-shirts and pants. The items that make your customer return to your store. These products not only make your customer come back, they are also a chance to generate more up-sell (by presenting higher-margin items next to your more easy affordable regular items).
What are my up-sell opportunities?
Think about the ways you can generate more up-sell in your store. These items should always be easily purchasable and should be displayed with relevant products. Going back to fashion, this could mean presenting flip-flops, towels and sun protector next to your bikini sets.