Turn your stores into customer magnets with optimal assortments. Boost sales and cash flows with Ariane 4S Assortment Optimization.
🎓 Definition
The Range breadth defines the extent of the:
- Width (up to what varied of product types segmentation do we go)
- Depth (up to how many options do we propose).
🧪 Example of Range Breadth
In the Ice Cream Category, a Retailer offers a range of ice cream product types, such as Pints and Novelty.
Within the Pint, the Retailer may offer 10 different flavors, such as vanilla, chocolate, strawberry, mint chocolate chip, and rocky road. And within the Novelty, the Retailer may offer ice cream bars, sandwiches, and popsicles.
The range breadth would be the total number of distinct product lines across all product types within the Ice Cream Category.
❓What is used for
Assortment strategies, when executed right:
- Boost sales and expand customer reach.
- Influence customers' buying decisions by determining which products they interact with.
Examples:
- Seasonal Offerings: An ice cream shop might stock refreshing flavors in summer, and unique ones in the monsoon. Similarly, clothing stores may offer beachwear in summer and cozy jackets in winter.
- Strategic Placement: Supermarkets often place complementary items, like toothbrushes next to toothpaste, prompting customers to buy more.
However, it's not always a win-win:
- Too Much Variety: Can overwhelm and deter customers.
- Too Little Variety: May underwhelm customers, affecting sales negatively.
The takeaway? Extensive market research is crucial! Retailers must understand their target customers, the store's location, the prevailing climate, and other customer preferences before setting an assortment strategy.
How can retailers effectively determine the optimal range breadth for their specific market or customer base?
Determining the optimal range breadth for a specific market or customer base requires comprehensive market research. Retailers should analyze customer preferences, shopping behaviors, and local market trends. It's essential to understand the target audience's needs, the store's location, prevailing climatic conditions, and other relevant factors. This research will provide insights into which product types and options are most likely to resonate with customers and drive sales.
Are there any industry benchmarks or standards for range breadth that retailers should aim to meet or exceed?
While there may not be strict industry benchmarks or standards for range breadth, retailers should aim to strike a balance between offering enough variety to meet customer demand and avoiding overwhelming them with too many choices. The optimal range breadth can vary significantly depending on the retail format, target audience, and market segment. Therefore, it's crucial for retailers to conduct their own market research and analysis to determine what works best for their specific situation.
How frequently should retailers reassess and adjust their range breadth to adapt to changing consumer preferences and market trends?
Retailers should regularly reassess and adjust their range breadth to adapt to changing consumer preferences, market trends, and seasonal demands. While there is no one-size-fits-all timeframe for these reassessments, it's generally recommended to review assortment strategies at least semi-annually or whenever significant shifts in consumer behavior or market conditions occur. By staying proactive and responsive to changes, retailers can ensure that their product offerings remain relevant and appealing to their target audience.
💡Quick Tips
In smaller store formats, Range Breadth is even more vital. With limited space and shopper basket size, choices must be strategic and impactful.