🎓 Definition
Share of Assortment is the number of SKUs of a Brand or in a Category compared to the total number of SKUs of a Brand or in a Category in the respective Category.
🧪 Example of Share of Assortment
Category Example: Confectionary Category has a total number of 436 SKUs. Within the Confectionary there are 6 Sub-Categories, Cookies, Wafers, Biscuits, Cake, Baskets, and Crackers.
- Cookies 94 SKUs, Share of Assortment = 22%
- Wafer 78 SKUs, Share of Assortment = 22%
- Biscuits 96 SKUs, Share of Assortment = 30%
- Cake 66 SKUs, Share of Assortment = 15%
- Baskets 46 SKUs, Share of Assortment = 11%
- Crackers 56 SKUs, Share of Assortment = 13%
Brand example: if a Retailer has a total of 94 SKUs in the Cookies Sub-Category and 30 of those SKUs belong to Brand A, the Brand has a Share of Assortment of 32%. If the retailer carries 50 SKUs from Brand B, Brand B has a Share of Assortment of 53%.
❓What is Share of Assortment used for
Analyzing the share of assortment allows Retailers to optimize assortment and its space allocation also called Share of Space.
For Category management: Retailers can use the share of assortment to manage their product categories more effectively. By analyzing the share of assortment for different categories, retailers can identify which categories are performing well and which ones need improvement. They can adjust their product mix to optimize sales and meet customer demand.
For Sub-Categories effectiveness: Share of assortment helps retailers to improve Assortment effectiveness to ensure the numbers of SKUs allocated to a Sub-Category delivered a similar Share of Sales.
For Brand effectiveness: Share of assortment helps Retailers to measure the Brands effectiveness, Retailer will follow closely if the number of SKUs allocated to a Brand within a Category or Sub-Category (Share of Assortment) is close to the Brand Share of Sales also called Market Share.
By comparing Share of Assortment with Share of Sales, Retailers can gain additional insights Brand effectiveness:
- Share of Assortment is higher than Share of Sales = Retailers might want to reduce the number of SKUs for a Brand, to select better SKUs or activate SKUs through promotion or activities.
- Share of Assortment is lower than Share of Sales = It may indicate that the Retailer is missing out on sales opportunities by not offering enough products in that Category or Sub-category.
🖥️ Make it happen in Ariane
How to access Share of Assortment in Ariane: 3 Simple Steps
Step 1: Select the Range Gap Analysis Menu in the Promotion Menu Bar.
Step 2: Select Option in the Filter Menu and choose the KPI and hierarchy level you want to measure.
Step 3: Select the period you want to measure.
And here it is.
