What is a store's assortment policy

When building an assortment policy, it is important to understand which assortment types you will deal with. Classification is possible by such criteria as breadth, depth, saturation and specialization. Each item format has its own specifics, expressed in management methods, structuring principles and other nuances. Breadth This metric denotes the total number of product categories and subcategories. The larger it is, the greater the target-audience coverage and the stronger the company's competitive position.

For example, a supermarket's assortment is broader than a small grocery store's, so its footfall is usually higher. An online electronics store offers products for the widest possible segment of buyers, whereas a dealer of a specific smartphone brand has a target audience many times smaller. By breadth, an assortment can be simple or complex: the former includes a relatively small number of categories and items, the latter offers the customer a much wider choice. It can also be grouped or expanded.

In one case the item master consists of products similar in purpose and specifications; in the other it includes the widest possible range of diverse products. _Examples of assortment types by breadth_

Depth This parameter denotes the number of items within a single product category. It affects target-audience coverage, customer satisfaction and sales growth. The greater the depth, the wider the segment of customers you can offer the product they need.

By this criterion the assortment is divided into two types: - type-based - the category consists of similar products with comparable characteristics; - brand-based - products of different types, but manufactured by the same company or belonging to the same line. _Examples of assortment types by depth_

Saturation This characteristic denotes the total number of all items in the assortment overall, taking into account breadth and depth. The more saturated the product range, the richer the choice offered to the customer, and therefore the higher the chance that a person will make a purchase in this particular store. It is important to remember that as saturation grows, so do the store's costs for purchasing, storage and logistics.

To minimize difficulties at every stage of the assortment policy lifecycle, you need not only experienced marketers, procurement managers, and logisticians, but also modern solutions, including technological ones. A number of operations can be automated, which reduces the risk of errors caused by inattention and speeds up data processing.

Such operations include: - collecting information on the current state of the assortment; - surveying users; - analyzing the market and pricing policy for individual products; - searching for the data needed to assess the prospects of expanding the catalog (for example, the number of manufacturers producing products with similar characteristics); - monitoring sales volume by category, individual product and the entire assortment.

Modern companies make active use of innovative solutions and technologies, including artificial intelligence. This can, for example, simplify the collection and analysis of the data needed to assess the competitiveness of the assembled catalog, product margins and other parameters.

For the assortment policy to drive profit growth instead of turning into manual routine, it must be built on accurate data. This is achieved through automated data collection, integration with accounting systems, and data transfer to BI - to analyze demand, turnover and margins. Such solutions let you review the assortment regularly and make decisions quickly and with solid grounds.

For all of this to work, it is important not just to "implement IT" but to do it right - with business goals in mind. Entrust automation and configuration to professionalswho know how to combine analytics, technology and hands-on practice.