SUM
Assortment analysis is a crucial tool for managing shelf space for new launches, as it helps to determine the shelf space for each brand. By utilising FSI (Fair Share Index) analysis, we can define the SKU dynamics of each brand by store type, allowing us to determine the number of SKUs per brand. Distribution and parreto analysis also help in evaluating the current situation, determining which SKUs contribute the most to sales and which contribute the least. By analysing the current shelf situation through assortment analysis, we can make room for new launches, ensuring that our shelves are well-stocked and ready for growth.
Assortment analysis is the solution for managing the shelf space of new launches pressing?
How many of us, whether we work in category & space management, as buyers in the retail industry, or as KAMs for manufacturers, face the difficulty of adding new launces to overcrowded shelves?
New product launches stimulate market growth by providing consumers with innovatios or simply extend a brand's product portfolio getting self space and market share.
In any case, it is a subject that needs to be addressed and find its place at the first point of sale.
Every new launch belongs under a brand. Each brand has its own market share and, correspondingly, its own space on the shelf.
However, taking things from the beginning, a proper approach starts with the evaluation of the shelf current situation.
Following the FSI (Fair Share Index) analysis, we can define the SKU dynamics of each brand by store type. Essentially, we need the active product list by store type, the available shelf measures, and the sales shares both for the overall market and within the retailer we are examining. Following our analysis, we will arrive at a specific number of SKUs/brand.
Another factors that help us to evaluate the current situation is distribution and parreto analysis.
With pareto analysis, we determine which SKUs give us the 80% of our sales (the core part of sales) and which skus give us the remaining 20% of sales (variety purposes).
parreto analysis could be used both for the total category and for subcategories.
(Always remember that sku analysis based on VALUE sales)
Parreto Analysis
Distribution Analysis
Through assortment analysis (as described above), we can evaluate the active product list for a category as well as the number of SKUs for a brand based on its share and available shelf space.
After analysing the KPIs, we can determine the available space for new launches by
removing SKUs that have fallen behind and making room for new ones.
As a conclusion, adding more items to an already overloaded shelf is not the solution.
Analyze the current shelf situation, assess your outcomes, and then make room for newcomers
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