Sales and Distribution — Measures of Assortment

To better manage assortment there are a number of questions that retailers and manufacturers need answers to:

  • How many items or lines are stocked by a retailer? More specifically there is the need to assess:
    • Average number of brands of a category in a store.
    • Average number of items of a category in a store.
    • Average number of items of a brand in a store.
    • Brand’s share of total category items.
    • 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. The relevant metrics are as follows:
    • Sales per point of weighted distribution
    • Share in handlers
    • Average sales per store
    • Rate of sale (adjusted average sales per store)
    • Cash rate of sale
    • Rate of gross profits
    • Portfolio analysis
  • What is the extent of concentration/fragmentation across different categories? Fragmentation analysis.
  • How many of brand buyers are exclusive buyers? Exclusive buyers and cumulative duplicate buyers’ analysis.
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