How can you effectively allocate your product assortment to meet your target market's needs?

1. Understand Your Target Market. 2. Market Research. 3. Categorize Your Products. 4. Product Lifecycle Management. 5. Profitability Analysis. 6. Inventory Management. 7. Product Mix Strategy. 8. Continuous Feedback and Adaptation. 9. Data Analytics. 10. Pricing Strategy. 11. Promotion and Marketing. 12. Cost Control. 13. Sustainability and Ethical Considerations.

Product assortment helps to put Right product at right place at right price and at right time.. It will solve all problems for the customer and Retailer.

It will be fascinating to see the impact of artificial intelligence and real-time data that allows for brands to genuinely deliver on that 'right product', 'right time' notion. Hopefully, the use of that real-time data will allow for a much more localised and specific product offering. Who knows, maybe it will allow for much more of the joy of discovery to return to retailing! ?? ??

Product assortment encompasses the range of products a business offers, defined by breadth (categories), depth (variants within categories), and length (total products). Product allocation, on the other hand, is the strategic distribution of this assortment across sales channels, locations, and time periods. It involves decisions on inventory distribution based on demand, supply, competition, and seasonality. Effective allocation ensures products reach the right places at the right times, optimizing sales and customer satisfaction.

1)Correct product that should be meet the catchment needs. 2) Visibility - More important that category flow should be followed either in offline or Ecom channel.

The good old and popular concept of right product at the right location , at the right time , at the right price is significant even today for any retail entity. Effective Inventory management is critical to the profitability and this aspect can create havoc if not correctly monitored and managed, plus the recovery journey of streamlining the inventory is Long and tedious. Hence use of effective tools is critical for product allocation , good conversion and customer satisfaction

I prefer to emphasize the vital role of effective product assortment and allocation in the retail world. These practices are pivotal because they directly impact customer satisfaction, loyalty, and long-term retention. By tailoring your product assortment to your target market's needs, you not only attract more customers but also foster higher purchase frequency and basket size, ultimately reducing the risk of them turning to competitors. Efficient allocation avoids the pitfalls of overstocking and understocking, curbing inventory costs while elevating sales and profit margins.

Always keep the Pareto-Rule in mind. A small share of your products will deliver a majority of your revenue and profit. However, some products are simply useless without the right add-ons (e.g., you better have hinges on stock, if you sell kitchen cabinets for take away)

An Product assortment plan has to be created with a clear objective of product market fit. You need to provide the right assortment to your target audience without effecting Yours resources which is always limited. Optimal assortment plan at macro level if targeted correctly will lead to inventory optimization and higher frequency in purchases . Supply chain efficiency will follow which will eventually result in minimizing inventory holding cost and maximizing profits.

Product assortment and allocation are critical to success. Servicing the right products at the right time for the right price to customers will grow your customers through high relevancy of products, grow their spend and retention with you, and can drive purchase frequency. Once the right products are in your assortment, allocating your products to the right channels is critical to maximise selling to demand and efficient selling of your stock.

Effective product assortment and allocation play a crucial role in the retail industry. These practices are vital as they directly influence customer satisfaction, loyalty, and long-term retention. By carefully curating product assortments and ensuring their strategic allocation, retailers can cater to diverse customer needs and preferences. This not only enhances the overall shopping experience but also fosters a stronger connection between the customers and the brand. In essence, understanding the importance of product assortment and allocation is key to achieving sustainable growth and success in the competitive retail landscape.

Finding and identifying your target market is answering half the problem before analysing your target market. Target market also depends on your product strategy as this defines who your customers are. Once you have pin pointed your products and target market, the 'market need' is met by linking the two together. Analysing your target market is to assess customer's responses to what you are already offering, and then identifying where there are gaps, risks or opportunities. You can collect customer responses from surveys/focus groups, analysing customer behaviour via analytics, or listening to them via your contact touchpoints like customer service or social media channels.

It always depend upon your resources as the best research data come with a premium. Observation is key for startup with tight budget to be able to validate your target market needs. If yours competitor are all ready selling the core product you are offering or going to offere it's the best reference point you have. Positive - You won't have to Launch an Mvp ( minimum value product) just copy the category leader and optimize on it and build an augmented offering for differentiation. Negatives- As a competitor is allready there you won't be able to play a price game as they would be much better equipped to do so due to their early starter advantage and effeciany in supply chain. Past data can also help but it will come over time.

Actually I agree with this, Target customers differ demographically based on various factors, including community and health guidelines. For instance, cultures, traditions, and customs play a significant role. Innovative and cost-effective market research strategies can definitely provide insights on how to analyze precise needs, consolidating precise data to implement effective allocation to various target audiences."

Social media is all the "market research" you need... see what your potential customers are talking about, what companies they are following and what they do by what photos/videos they post. People tend to "segment" themselves into groups on social media and you can see from that all the "analytics" or other such from what they say/do.

Find a good way to structure your assortment. Think about it like a portfolio, considering the different types: products exclusive or unique to you, how often you will launch new products if needed, your core 'always on' offer, and niche but low stocked products to offer variety. All different product types should contribute to your overall assortment.

Assortment design many a times is strategic and depend upon yours organization growth objective. Differentiation- Its required to cut competition and require heavy investment in product research and development. A long term commitment is required to achieve this objective and would generally be opted for companies looking to carve their niche. Diversification - Generally if your Target market has stagnated and its looking for growth. New products which are related to existing product offering are introduced to fullfill this particular objective. Rationalization - Fashion is changing but profits need to be omnipresent. removing products which are no longer needed for your consumer base or are non profitable .

Rate your products on certain metrics. 1) Must to have, Daily Essentials 2) Niche 3) Premium Products 4) Mass Products 5) Consistent Supply 6) Supplier Competition 7) Storage Cost 8) Saleablity and Shelf Life 9) Lead time and ordering cost Consider these ratings in preparing your final assortment.

I use data when designing product assortment. What KPIs are we targeting for the next year, quarter or month? If we are targeting margin, we need some low cost items that have a high perceived value, preferably something small, lightweight and non-breakable for eCommerce delivery. If we are looking to increase UPT, look at items that are accessories/ add ons to our existing best sellers. If we are looking to increase conversion and orders, find items that are high volume and sell them close to cost, using them as a loss leader to drive customers to your site and right to checkout.

I suppose this is the place for practical suggestions, not academic generalities. By default, you do not implement the assortment of a particular store on a small lonely island with only one palm tree. I assume that the most difficult situation for you is when you come with a new concept to a new market. Otherwise, you are only expanding the network of your chain and thus have a ready-made basic template. Of course, you must always make adjustments to the assortment through category management depending on the local situation. But that's another topic for a real professional...

I prefer to stress the importance of methodical product assortment allocation in retail strategy. Once your product assortment is designed, effective allocation across sales channels, locations, and time frames is crucial. Utilizing methods like ABC analysis, matrix allocation, and dynamic allocation empowers retailers to make informed decisions. ABC analysis streamlines resource allocation, focusing more on high-potential products. Matrix allocation optimizes product placement by aligning performance and potential.

ABC Allocation is necessary for budget & inventory planning generally all Merchandiser name it differently . A-"Noose"- these are products category which have good sales as well as Margines across channels. B-"Standard" - these are products that have reached their highest potential earlier and are to be adjusted for discounting prices and design modification as per competitors .and are to be stocked in a qty that gives steady sales without stock out C-"Slow mover"-Articles which are neither giving significant sales or Margines . Matrix allocation- it's depend on allocation based on specific store/region sales. Dynamic allocation- A dynamic base qty is assigned store wise monthly .it's ensured replenishment is done considering it.

ABC is a usable model, but only when you have defined the weight of the individual assortment categories, the categories make up the block margin and their weight is fundamental for the distribution of the product in space. Tuning groups according to ABC is just tuning the assortment offer.

Sales: How much revenue is each product generating? Profitability: How profitable is each product? Turnover: How quickly is each product selling? Sell-through: What percentage of each product is being sold? Customer satisfaction: How satisfied are customers with the product assortment and one can initiate customer feedback and surveys

For sure you have to track your metrics as a base to start from. Keep on talking to/ communicating with your customers and learn from them. Take their input and translate it to range and allocation.

Planning,Allocation & replenishment all these three merchandising optics are more so dependent upon analysis of the same metrics. Sales Margines Turnover Sell through These are to be analysed in an order so as we can derive to our objective . Sales & Margines in combination will help us bifircate the stock in top selling/slowmover. Sell through is a great help in assigning Allocation as it's the Equalizer . It gives result in terms of percentage stock to sale in an specific time period .

Guys, every merchandiser who lays out the assortment does so on the basis of strong metrics. Of course, after implementation, each layout is measured and tested, but it is still done in other running stores. Exposure is still being measured and performance verified. It is done in food supermarkets to fashion stores.

Una ponderación nos permite agrupar las métricas que consideremos importantes. Un vez definidas las variables, una asignación porcentual nos permite una mejor administración del portafolio. Imposible dejar por fuera de este mix las ventas en valor y las ventas en unidades movidas.

By conducting market research , analysing customer deta and segmenting the customer whom we dealing with. Market research can help to identify the trend , preference, behaviour and pain points of target market.