Who forms the assortment matrix? Assortment matrix - formation, management, control. and processing of personal data

Building a store’s assortment matrix is the most important element of a store’s assortment policy. Why is an assortment matrix needed, in accordance with what is it formed, what methods exist for analyzing the product range, when does this assortment need to be expanded - these and other topics should be the subject of discussion among the owners of large shopping centers or small retail outlets.

A store’s assortment matrix is a document containing a complete list of product items offered to the buyer in the store, features of the store’s format and location. Sometimes it is also called the commodity matrix.

Where does the creation of a store’s product matrix begin?

In some stores, the filling of the assortment of goods occurs haphazardly. For example, the owner trading business pays attention to the product that sells best and decides to increase its supply. Or, observing the increase in profits from competitors, he orders additional quantities of a product that “goes well” from his neighbors. And then he starts playing with prices. Often this happens bypassing research for “additional profit”. Costs rise, profits decline. The assortment matrix should be formed by analyzing many components.

The next step in creating an assortment of goods is an analysis of the consumer group, their requests and needs. This is also done so that through analysis different groups customers, focus on “your consumer” and, as a result, satisfy his needs for a particular product.”

Changes to the product matrix must take place at least twice a year. General requirements to the assortment must remain unchanged, but specific changes are necessary. Once every six months, it is necessary to analyze the existing assortment, monitor customer purchases, take into account sales trends and make changes to the product matrix.

Look at the changes on common market, pay attention to the range of competing companies, compare customer flows, update your pricing policy. You need to not only maintain the interest of regular customers, but also attract new ones.

How to create a product matrix?

We begin forming a product range by identifying product groups. Next, you should detail each position down to a specific product. At the same time, do not forget to take into account the needs of customers. Set a price based on average price and taking into account the profit percentage for a given product. Provide similar prices for different product groups.

Study the supplier market. Analyze and collect information about the quality of the products provided, partnership policies, and business rules.

The product matrix includes the following components:

- Name product group(for example, bakery products)
- name of the product category (for example, hearth bread, Moscow bun)
- designation of the price category (premium, medium, economy)
- establishing the product code;
- definition of a trademark;
- designation of packaging, packing;
- name of the product item;
- information about the supplier;
- information about the employee responsible for this category;
- a note indicating whether this product is included in the minimum assortment.

We call the minimum assortment the groups of goods that are required to be in stock in your store. It shouldn't happen like this. That these are the goods you will run out of. The composition of this minimum can be determined based on customer demand.

At the large trading enterprise the product matrix contains a large number of products. Medium and small sellers have a smaller matrix. How detailed your matrix will be depends on your desire and capabilities. Make it convenient for constant use.

When representing your brands in the region, take into account the specifics of the stores. Of course, it is very convenient when you work with one group of goods in your country. It’s easy to build logistics and order products from one supplier. Stores located in different locations may have a different product matrix. After all, the formation of the matrix depends on a specific circle of buyers and this component cannot be ignored.

It’s good when you have professionals on site whom you completely trust. Then making changes to the assortment matrix will not be meaningless, but will be the result of an analysis of the purchasing interests of local residents. Organize your work so that all local changes are approved by you. Centralization of your activities is necessary. The range of goods in the regions may depend on both the methods of delivery of products and the suppliers operating in your economic field.

How to analyze a store's assortment matrix?

When working on a minimum assortment composition, you need to evaluate the role of each product in a given food basket. The assortment matrix includes locomotive goods, substitute goods (substitutes), additional (related) goods and status goods.

Locomotive goods
These are the products that form the basis of the assortment matrix. The most “popular” products, sometimes with a minimal markup. They work more to attract customers than to make a profit. You may have several such locomotive groups. Please note that here we're talking about not about the most necessary, important goods, but about goods that have external appeal.

Substitute goods
This group of goods includes products of two categories: more expensive and profitable or cheaper, but high-margin. the main task make sure that the buyer pays attention to them instead of the locomotive goods. Therefore, these two groups are often placed side by side so that buyers can compare and choose products that are more profitable for you.

Related products
Typically these are accessories and additional products, who buy “in addition” to the main purchase. This group includes services provided upon purchase, for example, setting up equipment. the main objective- increase in average check.

Status products
The inclusion of status goods in the assortment matrix has more of an image component - sales in this group are the smallest, as is profit. But they are the ones who create a feeling of wide choice among buyers.

Buyers can also be classified into three categories:
- Those who are looking for a store with low prices;
- Those who are most interested in the price/quality ratio;
- Those who are looking for a product that will satisfy their needs as much as possible, regardless of price. It is this group that status products are aimed at.

Use a program to create a store assortment matrix. Consider our recommendations. After analyzing demand reports and the state of the warehouse, you will understand how to adjust the store’s product line.

One of the features of the development of any competitive market is a decrease in the marginal income received from the sale of one unit of product or service. Retail is an excellent illustration of this phenomenon. As the number of stores increases, price competition inevitably develops, which leads to a significant decrease in the profits of each of them. Against this background, many entrepreneurs who were unable to rebuild their business to new realities, making it effective, are simply forced to leave the market, giving way to more far-sighted ones.
– this is the thing on which the prosperity of any store largely depends. Even if an entrepreneur has a well-functioning personnel management system, experienced accountants and talented administrators, they will not be able to have the same impact on the final result as thoughtful work with the assortment.
Working the old fashioned way, when the assortment is formed and maintained on an intuitive level, still has a right to life, but if you want to build a highly profitable, growing business, then you cannot do without analytics and planning in the field of assortment management.
A well-planned assortment will allow you to:

increase gross profit;
reduce inventory;
increase the average check amount;
stimulate the growth of customer loyalty and, as a result, in the medium term, an increase in the number of receipts per day;
use effectively cash. It's no secret that retail chains They have not invested their money in goods for a long time - it is all in interest-free trade credit provided by suppliers. The chains use their own money to open new stores and buy equipment.

Assortment matrices, planograms

Almost always, when we talk about assortment, this word means “assortment matrix”. An assortment matrix is a list of all product items (SKU - stock keeping unit) presented in the store for sale. Based on this, planograms are subsequently drawn up, according to which the goods are laid out on the shelves.
As a rule, its own assortment matrix must be compiled for each product group from the store classifier. Firstly, it is convenient, and secondly, goods from different assortment groups may have different consumer properties and have different delivery conditions, which will not allow applying a single assortment building model to them.
For example, we will create an assortment matrix for grocery store in the “canned milk” group. Before compiling it, we will need the following input data:

the number of SKUs in which the group should be represented. Calculated using the formula: length of shelf space (m) / average width of 1 SKU. In our case, 770 mm is allocated for the canned milk group, and the average SKU width = 76 mm. Total: 770 mm / 76 mm = 10 SKU;

by product group for a period of 3-6 months:

Name of product	sales amount	profit	% markup	profit share	ABC
	50000	12500	30	12,7%	A
	47000	11750	30	12,0%	A
	30000	9000	35	9,2%	A
Condensed milk 380 g Lyubavinka can	32000	8000	30	8,1%	A
Condensed milk 380 g Tyazhin can	32000	8000	30	8,1%	A
	24000	6000	30	6,1%	IN
	22000	5500	30	5,6%	IN
	17000	4250	30	4,3%	IN
	16000	4000	30	4,1%	IN
	14000	3500	30	3,6%	IN
Condensed milk 380 g Gustiyar can	14000	3500	30	3,6%	IN
	13000	3250	30	3,3%	IN
	12000	3000	30	3,1%	WITH
	10000	2500	30	2,5%	WITH
	9000	2250	30	2,3%	WITH
Condensed milk 380 g Sibir Velikaya can	8000	2000	30	2,0%	WITH
Condensed milk 1000 g Merchant row plastic	8000	2000	30	2,0%	WITH
	7000	1750	30	1,8%	WITH
	6000	1500	30	1,5%	WITH
Condensed milk 300 g Rogachev d/pack	4000	1000	30	1,0%	WITH
	4000	1000	30	1,0%	WITH
	3000	750	30	0,8%	WITH
	3000	750	30	0,8%	WITH
Condensed milk with cocoa 380 g Gustiyar can	2000	500	30	0,5%	WITH
TOTAL:	387000	98250

A familiar picture for any store when generating sales reports for a long period of time, when for a store with a capacity of 10,000 SKUs, a report of 30,000 falls out. This means that the assortment was constantly changing during this time. In most cases, this should be avoided.

When constructing assortment matrices, many people use only ABC analysis, cutting the assortment from below to the required number of SKUs. This approach has only one advantage - speed. The downside is a decrease in turnover across the group and the negativity of buyers who cannot find the product they need.
You need to use sales analysis only to obtain primary analytics, which will be used in the future as a basis for building an assortment matrix.

Methods for compiling an assortment matrix depending on your goals

Before starting work on assortment planning, you should determine priorities that will depend on overall strategy business development. As a rule, it is almost impossible to build an assortment that will simultaneously bring maximum profit, have long-term product credit, minimum prices and a high level of service for customers. When creating assortment matrices, you significantly influence the future financial results of the company:

focus on maximum profit. In addition to Marker Products, the assortment matrix primarily includes products that can be traded with a maximum margin (actual margin + retrobonus, if any). Before compiling matrices, it is necessary to monitor the price level in competitors' stores to determine the maximum possible retail prices;
focus on maximum trade credit. The assortment matrix primarily includes those products whose supplier can provide a longer payment deferment. Often, with an increase in the number of days of deferment, the supplier increases the price of the product, which leads to a decrease in the markup on the product or an increase in retail prices;
Focus on the maximum level of service for customers. The assortment matrix is built in such a way as to satisfy the largest possible number of customers. Products are included in the assortment only on the basis of consumer preferences, sacrificing, if necessary, payment delays and gross profit. The most popular and correct one, aimed at obtaining high results in the long term.

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

At the beginning of the work on compiling an assortment matrix, you should divide the product group into segments according to properties that are significant to the buyer. Let's simulate the process of choosing condensed milk by a buyer in a store:

Type of product, “WHAT DO YOU NEED?”: regular condensed milk, boiled, with cocoa, with cream, etc. (see sales analysis). A buyer who comes for boiled condensed milk for a cake will not take condensed milk with cocoa if it is not available. Thus, our “canned milk” group is divided into the following segments:
- condensed milk;
- boiled condensed milk;
- condensed milk with cocoa;
- cream;
- sterilized milk.
Packaging, “WHAT?”: tin can (can), doy-pack (d/pack), plastic bottle (pl/w).
- can;
- doy-pack;
- plastic bottle.

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

The next step after the product group has been segmented is to determine the number of SKUs (out of our 10) that will be allocated within each segment.
Let's calculate the shares of profit within our segments.
For example, Cream in our sales analysis is represented by 2 SKUs: TM Favorite Milk (1,500 rubles profit) and Dairy Country (750 rubles profit). The total profit on cream is 1500 + 750 = 2250. The share in the total profit will be equal to 2250 * 100 / 98250 = 2.29%:

condensed milk – 74.81%;
boiled condensed milk – 13.23%;
condensed milk with cocoa – 7.89%;
cream – 2.29%;
sterilized milk – 1.78%.

tin can – 85%;
doypack – 9.7%;
plastic bottle – 5.3%.

After this, we calculate the projected share of profit for each SKU. The total profit from the group is 100%, and the number of planned SKUs per group is 10. Total, Profit / SKU = 100 / 10 = 10%. Thus, for every 10% in profit, we will allocate 1 SKU on the shelf for each of the subgroups within the segment.
Before distributing SKUs into segments, a few words should be said about the subgroups that scored less than 10% and the leading subgroups. For example, let's take Cream (2.29%) and Condensed Milk (74.81%). Let's look at the pros and cons of two allocations that can be made:

SKU distribution:
- Cream – 0 SKU (excluded);
- Condensed milk – 7 SKU.
Pros: We will be able to display 1 TM more condensed milk in the store. This may have a slight impact on the increase in turnover for the group (most likely there will be none, since there are much fewer top brands in canned milk).
Cons: Lack of Cream in the assortment, this is a guaranteed loss of 2.29% per group. Also, an increase in the number of TMs within one subgroup will have a negative impact on the turnover of Condensed Milk, since sales from 6 TMs will simply be redistributed to 7, thereby reducing the turnover for each of the TMs.
SKU distribution:
- Cream – 1 SKU;
- Condensed milk – 6 SKU.
- The pros and cons in this case change places. This distribution reveals the range of canned milk products much better.

If the number of SKUs allocated for the group allows, you should not refuse a unique product that has even small sales. In this way, the level of service of your store is achieved, thereby increasing average bill, and in the future the number of buyers.
Let's distribute SKUs into subgroups, starting from the minimum shares:

condensed milk – 74.81% (6 SKUs: after SKUs were “distributed” to weaker subgroups, 6 SKUs remained);
boiled condensed milk – 13.23% (1 SKU: slightly more than 10%, 1 SKU is enough)
condensed milk with cocoa – 7.89% (1 SKU);
cream – 2.29% (1 SKU);
sterilized milk – 1.78% (1 SKU).

We do the same calculations with packaging:

tin can – 85% (8 SKU);
doypack – 9.7% (1 SKU);
plastic bottle – 5.3% (1 SKU).

To create an assortment matrix template, we need to compare these 2 segments. In our situation, for this it is enough to determine which 2 products will be sold in a doy-pack and in plastic bottle. From the sales analysis it follows that only ordinary condensed milk is sold in this container.
If, for example, condensed milk and cream were sold in a doypack, the SKU should be given to the product that sells better.
As a result, we ended up with an assortment matrix template that takes into account the type of product and type of packaging:

	reinforced concrete	d/pack	pl/b
Condensed milk	4 SKUs	1 SKU	1 SKU
Boiled condensed milk	1 SKU
Condensed milk with cocoa	1 SKU
Cream	1 SKU
Sterilized milk	1 SKU

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

A generally accepted way of dividing goods into price levels is price segmentation. Classically, there are 3 main segments: economy, mass (medium) and premium. On the old ones competitive markets, product segmentation is primarily carried out by the manufacturer, releasing its product line under various Trademarks(TM), each of which usually reveals its own price segment.
You can find out from the manufacturer or distributor which price segment a particular TM belongs to. If there is no such information, you can monitor the TMs within the category yourself, according to their belonging to different price segments.
The easiest way to do this is as follows: we rank brands according to the cost of a comparable product from minimum to maximum. For example:

TM 1 (per 100 g): 64 rubles;
TM 2 (per 100 g): 57 rubles;
TM 3 (per 100 g): 49 rubles;
TM 4 (per 100 g): 32 rubles;
TM 5 (per 100 g): 29 rub.

After this, we calculate the price step between TMs:

TM 1 (per 100 g): 63 rub.
step: 6 p.;
TM 2 (per 100 g): 57 rub.
step: 8 p.;
TM 3 (per 100 g): 49 rub.
step: 17 rubles;
TM 4 (per 100 g): 32 rub.
step: 3 p.;
TM 5 (per 100 g): 29 rub.

The two largest steps in price, as a rule, will differentiate 3 price segments:

Economy: TM 4 and 5.
Mass: TM 3.
Premium: TM 1 and 2.

From our sales analysis it follows that the store sells condensed milk in only two segments: economy and mass. The economy class includes TU products TM Lyubavinka and several SKUs of condensed milk from Glavprodukt and Molochnaya Strana. All other products belong to the “mass” segment (mass market, average), and are approximately at the same price level.
Let's calculate the shares in the profit of price segments (based on sales analysis):

economy 18.8%;
mass 81.2%.

We can distribute SKUs in two ways: 2 (economy) + 8 (premium) or 1 (economy) + 9 (premium). To make a decision, let’s highlight the SKU of the economy segment in the ABC analysis:

Condensed milk 380 g Lyubavinka can	32000	8000	30	8,1%	A
Boiled condensed milk 380 g Lyubavinka can	14000	3500	30	3,6%	IN
Boiled condensed milk 380 g Dairy country can	12000	3000	30	3,1%	WITH
Condensed milk with cocoa 380 g Lyubavinka can	9000	2250	30	2,3%	WITH
Boiled condensed milk 380 g Glavprodukt can	4000	1000	30	1,0%	WITH
Condensed milk with cocoa 380 g Dairy country can	3000	750	30	0,8%	WITH

In the economy segment we sell regular condensed milk, boiled and with cocoa. However, for boiled condensed milk and condensed milk with cocoa, our matrix template has only 1 place each, and the assortment includes a product that sells much better:
Thus, it would be advisable to include in the matrix only 1 SKU from the economy segment: Condensed milk 380 g Lyubavinka can (Condensed milk)
The assortment matrix template now takes the following form:

	reinforced concrete		d/pack		pl/b
	economy	masses	economy	masses	economy	masses
Condensed milk	1 SKU	3 SKUs		1 SKU		1 SKU
Boiled condensed milk		1 SKU
Condensed milk with cocoa		1 SKU
Cream		1 SKU
Sterilized milk		1 SKU

Selection of Trademarks (TM) to fill the assortment matrix

According to ABC analysis, the following brands were sold in the store:

Favorite milk;
Lubavinka;
Belgorodskoe;
Glavproduct;
Dairy Country;
Tyazhin;
Gustiyar;
Siberia the Great;
Merchant Row;
Shadrinskoe;
Rogachev.

Using sales analysis, we calculate the share in the total profit of each brand:

Favorite milk – 29.5%;
Lubavinka – 14%;
Belgorodskoye – 12.7%;
Glavprodukt – 12.7%;
Dairy Country - 12%;
Tyazhin – 8.1%;
Gustiyar – 4.1%;
Siberia Great – 2%;
Merchant Row – 2%;
Shadrinskoye – 1.8%;
Rogachev – 1%.

IN general case When selecting Trademarks for your assortment, MirSovetov readers are recommended to adhere to the following principles:

If possible, include in the assortment matrix only TMs that are currently popular with buyers. Introducing a little-known TM into your assortment only makes sense for a unique product that can expand your product group. When choosing between condensed milk “Lubimoe Moloko” and “Gustiyar”, even if the latter offers Better conditions, the choice should be made in favor of the first;
reduce the number of brands. If you can get rid of several TMs painlessly for a product group, do it. Fewer brands means higher turnover, less work on purchasing, displaying goods and tracking balances.

Let’s analyze each of our brands using ABC analysis and an assortment matrix template (see the subheading “About price segments, determining the share of goods of each price segment in the assortment matrix”):

Favorite milk, Lyubavinka, Belgorodskoye, Glavprodukt - these four leaders make up 68.9% of the profit of our product group. Must be present in the matrix;
Dairy country. Condensed milk in a plastic bottle of this TM is a leader in its segment, so for the sake of this 1 SKU we leave this TM in the assortment;
Tyazhin is the only SKU of this TM, which is in fifth place in terms of profit and is in group A. Despite this, we do not include it in the assortment, because according to our template, the matrix should contain only 3 SKUs of canned condensed milk middle (mass) price segment, and these 3 places are already occupied by sales leaders;
Shadrinskoe. The only SKU of this TM is sterilized milk. No other TM has such milk, but our assortment matrix should have it, therefore, despite the low share in profit, we include this TM in the assortment.
Gustiyar, Sibir Velikaya, Kupechesky Ryad, Rogachev - all these brands are outsiders, in the line of which there is an assortment that duplicates the best-selling SKUs of the leaders. we get rid of them.

As a result, we can make a list of Trademarks that will be present in our assortment matrix:

Favorite milk;
Lubavinka;
Belgorodskoe;
Glavproduct;
Dairy Country;
Shadrinskoe.

The final stage. Filling the SKU assortment matrix from the above created segmentation

After the preliminary work is completed, we are ready to fill out the assortment matrix template with Trademarks. When filling out the appropriate cells in the template, we only need to select the best-selling SKUs in their segments from the sales analysis.
Sales analysis, after excluding the TMs we don’t need:

Name of product	sales amount	profit	% markup	profit share	ABC
Condensed milk 380 g Belgorod canned	50000	12500	30	12,7%	A
Condensed milk 380 g Favorite canned milk	47000	11750	30	12,0%	A
Condensed milk 380 g Glavprodukt can	30000	9000	35	9,2%	A
Condensed milk 380 g Lyubavinka can	32000	8000	30	8,1%	A
Condensed milk 280 g Favorite milk d/pack	24000	6000	30	6,1%	IN
Boiled condensed milk 380 g Favorite canned milk	22000	5500	30	5,6%	IN
Condensed milk with cocoa 380 g Favorite canned milk	17000	4250	30	4,3%	IN
Condensed milk 380 g Dairy country can	16000	4000	30	4,1%	IN
Boiled condensed milk 380 g Lyubavinka can	14000	3500	30	3,6%	IN
Condensed milk 1030 g Dairy country pl/b	13000	3250	30	3,3%	IN
Boiled condensed milk 380 g Dairy country can	12000	3000	30	3,1%	WITH
Condensed milk 300 g Glavprodukt d/pack	10000	2500	30	2,5%	WITH
Condensed milk with cocoa 380 g Lyubavinka can	9000	2250	30	2,3%	WITH
Milk is sterilized. 380 g Shadrinskoe reinforced concrete	7000	1750	30	1,8%	WITH
Condensed cream 380 g Favorite canned milk	6000	1500	30	1,5%	WITH
Boiled condensed milk 380 g Glavprodukt can	4000	1000	30	1,0%	WITH
Condensed milk with cocoa 380 g Dairy country can	3000	750	30	0,8%	WITH
Condensed cream 380 g Dairy country can	3000	750	30	0,8%	WITH
TOTAL:	387000	98250

Final table:

	reinforced concrete		d/pack	pl/b
	economy	masses	economy	masses
Condensed milk	Lubavinka	Favorite milk Glavproduct Belgorodskoe	Favorite milk	Dairy Country
Boiled condensed milk		Favorite milk
Sterilized milk		Shadrinskoe

Assortment matrix:
Using the example of canned milk, the process of creating an assortment matrix for retail store. When planning an assortment for other product groups, only the third point will be different: depending on the properties of the product, segmentation by properties can be significantly expanded. However, the general scheme will remain the same:

Drawing up an assortment matrix template in tabular form:
- segmentation by properties
- segmentation by price level
Selection of brands.
Filling out the Template with trademarks.
Creation of a ready-made assortment matrix.

“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 company strategy. 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 not created by the efforts of one category manager. In this process, it is desirable that the marketing department, pricing department and management team, represented by commercial director. 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 are taken into account point of sale:

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 target audience, advertising and marketing concept. At the same time, on what basis are these segments created? special significance does not have. 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 your main competitors, you need to understand what advantages and disadvantages distinguish each competitor. It also compares the price level for key product groups. Based on the data received, as well as the adopted own strategy, we determine what our competitive advantages, for example the depth or breadth of the range presented.

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 find the desired product leave without buying 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;
comfortable 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, realistically applicable in practice and convenient to use, three key rules must be observed:

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

Algorithm for creating an assortment matrix.

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 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 must be taken into account when compiling it.

Hello, Ladies and Gentlemen! The topic of our lesson is "ASSORTED MATRIX" .

“Assortment matrix - what is it?”

Let's start by answering this question:

ASSORTMENT MATRIX - this is the optimal set of product items in your product catalog that you trade in this moment, in terms of product levels, categories and characteristics.

An effective assortment matrix is a MUST :

Maximize sales, profit, battery, market share— depending on what goals your business has;
Fully meet customer expectations, and for product groups with the “Develop” strategy exceeds these desires;
Maintain optimal production cycle and inventory within the given standards, minimizing illiquid, excess and zero balances of goods.

So the funniest thing is that the assortment matrix in the form of standard excel tables, which numerous textbooks suggest for us, prof. websites and miracle consultants are complete bullshit and profanity.
And why? Yes, because the assortment matrix is not egyptian pyramid, which stands for four thousand years in one place.

Once and for all you will be inspired by the following. The assortment matrix is not a constant sign, it is a symbol of infinity. It's a super dynamic thing that can change every day.
And type it into Excel, sign it with the boss, and then collect “Acquainted” signatures from buyers and sales people, a rare stupidity and a stupid waste of time.

But we immediately have a second question.

How to manage and control this very matrix if it changes every day? And what should it actually look like?

My friends, in order for the assortment matrix to be formed quickly and automatically, buyers and sales people must constantly answer three key questions:
Why are we selling this product?
What product do we NOT need?
What product do we need?

“How do you make your sculptures?”- asked Michelangelo.
“I take a stone and cut off everything unnecessary”- he answered.

“How to make your own Assortment Matrix?” - you ask.
“Take your list of products and cut off everything that is unnecessary... and then add what your customers are missing.”, - I will answer.

However, no. I won't just answer. I will give you my personal instrument along with instructions.

GROUP DESCRIPTION OF GOODS

I’ll start the demo with my favorite construction and distribution example, although I will periodically throw up options from other product groups in order to convince you of the applicability of my method for any product business.

And the first thing we need is to divide our assortment into larger groups and subgroups. These are links to tutorials where I showed how to do this:

I won't repeat myself. The main thing is that at the end you can build a report like this with sales for each group and subgroup.

Grouping of goods for the assortment matrix

Read, understand. And we get to the point. So.

Step 1. For groups with a strategy KILL, we have an extremely simple plan of action. We we're taking it out of stock , we sell off the remaining goods and forget about it until the next strategic session.

Step 2. In the second step we we describe the products from each group by subgroups in the hierarchy and logically we check each of the subgroups for compliance with the market , so as not to engage in trade schizophrenia, offering beach umbrellas on the shores of the Arctic Ocean.

If a subgroup for some reason does not correspond to the market, it follows the group with the Kill strategy. We are removing it from the range, and giving the remaining subgroups the green light.

Step 3. On the third step we distribute goods by Categories, build Category Maps and compare them with market category maps. And this is where our paths diverge. Because a group with a Develop strategy and a Hold strategy is black and white, the yin and yang of our assortment.

The fact is that product groups with a strategy DEVELOP should be few, because within them you are obliged to form the widest and deepest assortment possible. It is very important. When we begin to develop a product group, we actually tell our clients that we are strong specialists in it. And if you position yourself as a specialist in a product group, be so kind as to do everything according to Feng Shui. Satisfy all possible needs of your clients to the maximum!

Therefore, the principles of forming the Assortment Matrix for groups on Development will be radically different from the principles for groups with a Hold strategy.

If you are working with a Developing Group and see an assortment hole on its category map, then be so kind as to find a supplier, puzzle the technologist and enter the missing product in the price list, because it must be there.

In groups with strategy HOLD everything is upside down. For these categories, we must carry out a very strict selection and include only TOP categories in our price list.

TOP PRODUCT CATEGORIES

TOP CATEGORIES — These are categories that, according to the results of ABC analysis, were assigned group A according to two indicators “Sales volume in rubles” and “Number of stamped documents”.

In this case, ABC analysis should be done within each specific group. Below is an example of an ABC analysis for the Electricity Supply Group, which highlights the TOP categories of this group.

If we hold a group, we are obliged to work only with the TOP categories from this group, with its assorted fat and nothing more.

In my example, I DO NOT claim to be an expert in this group, which means my client will forgive the absence of camping lanterns or spotlights in my price list, but if there are no 100-watt light bulbs or batteries, he will definitely be stressed.

Naturally, our main question is:
“How do you know which categories are TOP?”

To be honest, there are few methods and they are all on the verge of a foul.

Well, if it doesn’t work, then do it this way.

Collect as much information as possible about the products of this group, build a hierarchy of all its subgroups, and draw up a market map of the categories.
And then use your head, brainstorm with your fighters and select the top categories to suit your taste and color.
Enter them into the assortment, and then, using the “Assortment Management” module of the TopControl system, automatically rotate them until you determine the best-selling ones.

Here are a few words about how ROBOTS will save us when managing the assortment matrix.

The fact is that every night our robot merchandising independently analyzes commercial indicators for each category in the context of each product and assigns them statuses - Archive, No sales, Losers, To order, Working, Matrix .

And if you want to have an effective assortment matrix, then once a week or once a month, it depends on the turnover of your goods, generate a report like this on Product Status. And apply three standard solutions to them.

With goods Matrix, Worker, To order We continue Work .

It’s a little more complicated with goods that have been assigned status by a robot merchandising expert - No Sales or Losers .

If the USP of the product Minimum price or wow product , We continue Work with it if the product has a USP Functionality or Characteristics We We change it to analogue.

If the USP of the product is Brand, image, fashion or For assortment boldly We kill and clear the warehouse of its remains as quickly as possible.

It is clear that if your assortment consists of 10 positions in which you understand better than Kasparov in chess, or you stupidly don’t care about your business because oil was found in your yard last week, forget about everything I just told you and Don’t bother with Assortment matrices.

But if you have a decent price list, don’t have your own well, and have a burning desire and ambition to have more than a Hyundai Solaris at the entrance and French fries from McDonald’s,...

Learn to Manage Products Effectively.

Because the first Pi of marketing is not sales, promotion and everything else. The first Pi of marketing is PRODUCT! Thank you for your attention, good luck and great sales everyone.

To be continued…Video version of the post

23.01.2014

ABC sales analysis is one of the stages in the formation of an assortment matrix in a store. If you are faced with the task of creating an assortment that meets the needs of your customer, then the effectiveness of ABC analysis cannot be overestimated. The sales analysis methodology itself is quite simple and is based on Pareto’s law, which states that “ 20% of effort produces 80% of the result, and the remaining 80% of effort produces only 20% of the result.". This universal rule serves as the basis for classifying resources (in in this case goods) according to their importance for the retail enterprise.

The result of ABC sales analysis will be an understanding of the logic of buyer behavior and, as a result, an understanding of what product offer should be made to achieve the best financial results. Let's take a closer look at how ABC sales analysis is used to form an assortment matrix.

Methodology for ABC sales analysis (using the example of the configuration "1C: Enterprise 8.3" "DALION: TREND").

The main task of ABC sales analysis in the formation of the assortment matrix of a retail store is to get an answer to the question: " How can we ensure that the offer meets the expectations of customers who have entered the store and are at the stage of making a purchase?” Of course, ABC analysis is a separate tool that works in conjunction with other methods aimed at studying consumer behavior (surveys, focus groups, etc.). In this regard, the formulation of hypotheses and interpretation of results cannot be “taken out” of context, environment, in which the store exists.

ABC classification in sales analysis is formed according to 2 main indicators: profit and turnover. Modern analysis tools allow you to build an ABC report using two parameters at once (Fig. 1).

The ABC analysis process can be divided into several stages. The first stage of classification is an enlarged analysis of assortment groups, according to which an assortment tree will be formed in the future (Fig. 2). The second stage is the analysis of product categories within product groups. The main task at this stage is to determine the key consumer properties by which the buyer chooses a product in your store. In the example of the product matrix presented below (Fig. 2) for the assortment category “kefir”, the key properties are 2: “fat content” and “volume”.

Note 1: in the commodity accounting system " DALION: TREND "You can set any number of consumer properties for each card and item group through the "Group processing of goods" service.

Thus, ABC analysis of sales in the context of various consumer properties allows us to determine which of them are decisive when choosing a product. The properties themselves are identified expertly through the sequential construction of two-dimensional ABC reports in the context of these properties. In Fig. 3 and 4 show two ABC reports for the product category “juices”: in Fig. 3 – report in the context of the “brand” property, in Fig. 4 - in the context of the properties of “taste”.

The defining feature will be the property or several properties that most strongly influence sales, and thus clearly reflect the leading and underdog products in the reports. So, for example, in Fig. Figure 3 shows that the “brand” property is not key for the “juices” category and does not form a clear ABC classification. The “taste” property, on the contrary, reflects the clear leaders: “berry” juices and “apple” flavored juices.

The result step-by-step analysis In terms of properties, there will be a clear understanding of which properties should be included in the assortment tree and which should not (Fig. 2). As a result, an assortment tree will be formed, and subsequently the product offering itself will meet the expectations of your customer.

Go to the description of the software functionality in the "DALION: TREND" configuration.

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