Efficiency rate —
How efficient is a brand in securing depth of distribution of variants, where it is listed?
Which items should the retailer stock? As mentioned earlier this
is a function of size in terms of volume, value, and profit. Stocking decisions rely on
various metrics, such as:
Fragmentation analysis.
What is the extent of concentration and fragmentation across different categories?
How many of brand buyers are exclusive buyers?Exclusive and cumulative buyers’ analysis.
Examining the percentage of brand buyers who are exclusively loyal to the brand, as well as
analysing the overlap and loyalty of cumulative duplicate buyers. Retailers should place
importance on retaining items that demonstrate high brand loyalty. If these items are delisted,
there is a greater likelihood that shoppers may switch to other stores, resulting in the
retailer losing not only the sales from those specific items but also the potential loss of the
shoppers' overall spending in the store.
These questions and analyses help retailers and manufacturers make informed
decisions regarding assortment management and understand the dynamics of their product offerings
within the market.
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