🎓 Range Structure

To be built and managed, a range needs a structure that defines it. The range Structure is made of

  • Assortment structure: This pertains to the categorization or grouping of products within the range.
  • Price Structure: This refers to the hierarchy or organization of prices within the range.

The range structure is essential for the Category managers as it serves as a blueprint that assists them in making decisions to enhance the effectiveness of the range. Meanwhile, for customers, it ensures consistency and stability in both product choices and pricing.

🧪 Example of Range Structure

Using Cereal Category to illustrate the concept of range structure:

Assortment Structure: There are 3 types of Cereal products:

  • Kids' Cereals (often colorful with added sugars)
  • Health-focused Cereals (high in fiber, organic, no added sugar)
  • Instant Oatmeals

Price Structure: There are 3 price points for Cereal Type:

  • Kids' Cereals: Medium Price range due to branding and flavors.
  • Health-focused Cereals: Premium priced, considering ingredients and health benefits.
  • Instant Oatmeals: Budget-friendly, low-priced.

❓What is used for

The range structure provides a clear and organized framework for category managers, such as:

  1. Efficient Decision Making: With a defined range structure, category managers have a blueprint to guide their choices, whether it's about introducing new products, phasing out underperforming ones, or identifying opportunities for promotions.
  2. Optimized Inventory Management: Understanding the assortment and price structures helps in forecasting demand, managing stock levels, and reducing overstocks or stockouts.
  3. Clear Communication with Suppliers: A set range structure allows for better negotiations and collaborations with suppliers, as there's clarity on product needs and price points.
  4. Performance Analysis: Category managers can better assess the performance of individual products or segments within the range, leading to informed decisions about product lifecycle and placement.
  5. Improved Store Layout and Visual Merchandising: With a clear range structure, category managers can make informed decisions on store layout, ensuring high-demand or high-margin products are prominently displayed.
Learn more about Range Structure
Assortment structure
Price Structure
Sales Forecast