Determination of the assortment policy is one of the main activities of the company. Skillfully conducted analysis is the key to the success of an organization, because increasingly, between similar companies, the assortment becomes a key element of competition.
Usually the assortment policy of the enterprise pursues long-term goals. A well-chosen range of products provides the most effective ground for the productive activities of the organization as a whole.
A well-thought-out assortment policy allows you to optimize the process of updating the product range and at the same time serves as a kind of general direction indicator for the management of the organization.
The following basic principles of assortment policy can be distinguished:
customer satisfaction (this is the main principle underlying the market);
optimal use of technological knowledge and experience of the enterprise;
analysis financial results enterprises (the assortment is formed on the basis of the expected profitability and profit margin);
winning new customers (a standard strategy involving the expansion of sales markets), etc. .
It must be borne in mind that no organization can supply the same product to the market indefinitely. All components of assortment planning are interconnected and serve for the consumer as an “image” of a product or service. At the same time, the assortment policy is inextricably linked with two basic concepts:
product range - aggregate homogeneous goods or intended for sale in similar markets;
commodity nomenclature -- a set of commodity units and assortment groups offered for sale.
At the same time, “commodity nomenclature” is a concept focused on internal use within the enterprise and tied to specific market segments. The buyer deals with the assortment of goods, and the manufacturer and seller deal with their nomenclature.
The assortment of goods (product assortment, product nomenclature) is a set of goods united according to one attribute or a set of attributes.
As a rule, there are two types of assortment of goods - industrial and commercial.
The production assortment of goods is a list of goods (nomenclature) produced by the enterprise. Typically, the production range is narrow, a limited range of products. This is due to the difference in the types of raw materials used technological equipment, the profile of specialists, etc. Narrow specialization is economically justified, since specialized enterprises more successfully master the production of a limited range of products, produce them best quality, use the means of labor and labor force more efficiently, actively introduce innovations.
AT trade organizations a wide range of goods should be concentrated, which is a combination of products produced by various enterprises. For this purpose, the production assortment of goods is being transformed into a commercial one.
Trading assortment - a list of goods selected for sale in trading network. It includes a large number of names and varieties of goods produced by various enterprises, which are brought through trade to end consumers.
The classification of the assortment of goods according to its structure is complex and includes a significant number of elements. So, products are classified depending on the material of manufacture, consumer purpose, basic properties, and the like. The range includes the concepts of group, subgroup, species, varieties, brand, type and name.
Consider the classification of types of product range (Figure 1).
Figure 1. Classification of types of product range
Note - Source:
1. In order of importance for the enterprise:
The main assortment - includes goods that are in high demand. The sale, first of all, of these very goods, which bring highest profit, is the purpose of the enterprise. It is necessary to ensure the constant presence in the warehouse of the main assortment.
Complementary assortment - includes products that complete the main assortment. These are complementary goods, impulse purchase goods, goods for special occasions.
An additional assortment may not always be present in the warehouse, it may change by name, i.e. belongs to the variable assortment category.
2. Depending on the number of product groups in the assortment:
A wide range - consists of many product groups, each of which presents a large number of products.
Advantages of a wide range:
attracts different categories of buyers and increases their number;
the number of unplanned purchases increases;
allows you to more effectively manage profits by varying trade margins.
Disadvantages of a wide range:
additional equipment space is required;
overall inventory turnover slows down;
the complexity of accounting increases;
it is difficult to maintain the stability of the assortment.
Narrow assortment - consists of a small number of goods of several product groups (3-5).
Advantages of a narrow range:
it is easier to maintain the stability of the assortment;
can focus on meeting the specific needs of customers;
easier to account and manage.
Disadvantages of a narrow range:
there is a high risk of not receiving the required profit with a decrease in demand for these product groups;
Specialized assortment -- consists of 1-2 commodity groups .
A specialized assortment attracts those buyers who want to have a wide selection of goods and receive qualified service and advice.
The advantage of a specialized assortment is the depth of the assortment, which allows a wide choice for the buyer.
3. Depending on the number of similar products
Deep assortment - there are many options for similar or similar products.
Advantages of a deep assortment:
a large selection contributes to the fact that the buyer is unlikely to leave without a purchase;
customer loyalty is developed.
Disadvantages of a deep assortment:
too much big variety the same product irritates the buyer;
sellers themselves are poorly versed in the differences between goods;
the effect of "cannibalism" appears.
Flat assortment - a small number of varieties of goods are presented. You should carefully select products, focusing only on the most popular.
4. Depending on the degree of product differentiation:
A simple assortment - consists of simple undifferentiated goods (rolled metal, vegetables, sugar, cereals, etc.).
A complex assortment - consists of basic, complementary, interchangeable goods or goods that have their own internal classification within the same type according to various characteristics (shoes: styles, sizes, color, decorations, etc.).
Mixed assortment - it presents completely different product groups: food, household chemicals, personal care products, newspapers, etc.).
The marketing classic F. Kotler formulated a universal rule that sounds like this: the assortment is too narrow if you can increase profits by adding new products to it, and too wide if profits can be increased by excluding a number of products from it.
Thus, the range is at least two types - wide and narrow. It depends not only on the profitability of sales, but also on the goals that the seller sets for himself. If the goal is maximum market coverage, then the seller seeks to expand the range. When it comes to profit maximization, he, on the contrary, tries to focus on the most profitable "breakthrough" product groups.
The assortment policy of the enterprise is planning marketing activities aimed at selecting products for production and sale, developing their specifications and characteristics in accordance with consumer requirements. The effectiveness of the assortment policy of an enterprise depends on the level of its compliance with market requirements and consumer preferences.
Assortment management is the activity of the relevant services of the enterprise for the control, analysis and adoption management decisions in the field of marketing, sales and production in order to adapt the range to the needs of customers.
Assortment policy is the art of making decisions on a single product unit, product group and on the entire range as a whole in order to achieve the company's goals.
The main objectives of the assortment policy:
increase in sales by optimizing the assortment structure;
increase in inventory turnover;
achieving a competitive advantage through a more attractive assortment;
entering new markets;
reduction of costs associated with the content of the assortment;
formation of the company's image by positioning the assortment of commodity units.
The product range consists of product groups; product categories; product lines; commodity units.
Commodity group - a set of goods and their types, grouped according to a certain combination, the most important of which are the similar purpose of the goods.
Commodity line (line) - a set of goods intended for the same customers or sold through the same distribution channels or having the same price range.
There are the following properties of the organization's product range - quantitative and qualitative, presented in Figure 2.
Figure 2. Quantitative and qualitative properties of the assortment
In reality, there are very few firms that offer the market only one product. As a rule, the firm manufactures and sells several goods, and may also provide some services. All these goods and services define the product line of the firm.
The commodity nomenclature is a set of all goods and services produced and offered by the company for sale. Considering such a set, it is possible to single out separate groups of goods that are similar in their consumer characteristics or designed to satisfy certain need. These product groups are called assortment groups. For example, for a perfume and cosmetic company, they can be: cologne, perfume, lipstick, etc. Each assortment group consists of separate assortment positions (brands, models, varieties).
The totality of all assortment groups of goods manufactured by the company determines the so-called product assortment. A product range is a group of products that are similar in their function, the nature of the consumer needs for which they are bought, or the nature of their distribution. It is characterized by: breadth (the number of manufactured assortment groups); depth (the number of assortment positions in the assortment group); saturation (the number of assortment positions in all assortment groups); harmony (the degree of proximity of goods of various assortment groups from the point of view of their consumer or some other indicators).
Assortment of goods - a group of goods related to each other either due to the similarity of their scope of operation (application), or within the same price range. Assortment of goods - according to GOST R 51303-99 - a set of goods united by any one or a combination of signs http://www.glossary.ru/.
To ensure effective entrepreneurial activity The firm must continually develop its product range. This is necessary due to a number of factors:
- - change in demand for individual goods;
- - the emergence of new or improvement of existing products as a result of research in the field of engineering and technology;
- - Changes in the product range of competitors.
Besides, important factors product range development are:
- - expediency of use of free capacities;
- - the desire of intermediaries to purchase goods of a wide range;
- - the feasibility of using by-products of production.
In the current conditions, when the consumer places increased demands on quality and assortment on the product, the assortment policy is one of the most important areas of marketing activity for each enterprise. As world experience shows, leadership in the competitive struggle is given to those who are most competent in the assortment policy, own the methods of its implementation and can manage it as efficiently as possible.
The development and implementation of a commodity policy requires compliance with at least the following conditions: a clear understanding of the goals of production, marketing and export in the future; good knowledge the market and the nature of its requirements; a clear understanding of their capabilities and resources now and in the future.
In addition, the relevance of the problem of forming an assortment policy is associated with a large supply of goods on the market, with the growing needs of buyers and an increase in non-price competition. The specificity of the Russian aspect of the problem lies in the fact that the situation is complicated by general economic instability, inflation, low effective demand, low population growth, and imperfect market relations.
An important role in the marketing strategy is played by the assortment concept. It is a directed construction of an optimal assortment structure, a product offer, while taking as a basis, on the one hand, the consumer requirements of certain groups (market segments), and on the other hand, the need to ensure the most efficient use of raw materials, technological, financial and other resources by the enterprise. to produce products at low cost.
The assortment concept is expressed as a system of indicators characterizing the possibilities for the optimal development of the assortment of a given type of goods. These indicators include: a variety of types and varieties of goods (taking into account the typology of consumers); the level and frequency of updating the assortment; the level and ratio of prices for goods of this type, etc.
But the completeness of the assortment is not an end in itself, it is important how much it contributes to consumer satisfaction, and many factors influence satisfaction.
The study of the company's competitive capabilities creates the prerequisites for the organization of a well-thought-out product policy, which allows you to optimize the process of updating the product range.
The essence of planning, forming and managing the assortment lies in the fact that the commodity producer offers a certain set of goods in a timely manner that most fully meet the requirements of certain categories of buyers. When forming the assortment, there are problems of prices, quality, guarantees, service, the structure of the assortment is predicted for long term, which would take into account such important features of the product for the consumer as aesthetic characteristics.
The tasks of planning and forming an assortment are, first of all, to prepare a "customer" specification for a product, transfer it to the design department, and then make sure that prototype was tested and brought to the requirements of consumers.
In other words, in the formation of the assortment, the decisive word should belong to the heads of the marketing service of the enterprise. It is up to the marketing manager to decide whether it is time to introduce new products to replace or complement existing products. At the same time, great importance is attached to the study of the distribution of a particular product among potential buyers.
Assortment planning is one of the essential functions marketing, the role of which is growing due to the intensification of competition and the development of scientific and technological progress.
The product range includes all product groups that the company produces. The product range is characterized by the width by the number of offered assortment groups, the depth by the number of positions in each assortment group and comparability, which is determined by the ratio of assortment groups with respect to the common end use, consumers, price range and distribution channels.
Assortment item is a specific model, brand or type-grade-size (TSP) of products that the company offers to consumers.
The following main factors underlie the change in the company's product range:
Research and development is the main driving force, under the influence of which there is a change in the structure of the product range;
Changes in the product range of competitors;
Change in demand for individual goods.
The factors contributing to the expansion of the product range include:
Industrial buyers prefer to purchase several different items from the same supplier;
A sales agent can successfully sell several different products;
The implementation of several different products helps to reduce marketing costs;
Special modifications are the basis for the development of new products;
A wide range attracts wholesalers;
Unused capacity;
Use of by-products of production.
There is no need to prove the fact of the need to change the product range as a result of scientific and technological progress. The history of the development of various technological processes indicates that their improvement occurs exponentially up to a certain limit, after which this process gradually fades away and is replaced by another. it is generally accepted that the same trend is characteristic of products related to both industrial and consumer goods. The analysis of the company's product portfolio is based on this premise.
Stages of product assortment planning:
The first stage consists of 7 main points and aims to find out the current state of the company's product range and its ability to use internal resources to improve the structure of the product range.
1. Revision of the product range:
Analysis of sales indicators, gross and net profit for each product separately, calculation of the market share of various products;
Study of customer attitudes towards various products.
2. Analysis of production capacity, technology and available material resources;
3. Evaluation of the effectiveness of R&D;
4. Research and analysis of the system Maintenance;
5. Analysis of the organization and activities of the sales service;
6. Analysis of financial resources;
7. Analysis of personnel policy.
The second stage involves the organization of product planning and the creation of new products. Consists of 7 main elements:
1. Companies engaged in the development of new products have a research department or center, and a group administration responsible for R&D, technical service, market research and sales organization, as well as a product planning department. These specialists are united under the unity of command of the appointed manager before the launch of a new product into production. At various stages, all the functional divisions of the company are involved in the work in one way or another, and some of them - throughout the entire process. Their resources should be used to the maximum, overcoming the natural unwillingness to cooperate.
As a rule, products that require significant R&D are created within 5-10 years from the moment the idea was born.
2. Search for an idea for a new product.
3. Evaluation of ideas and selection of the best.
4. Research of consumer properties of a new product.
5. Studying the features of the production process.
6. Organization of pilot production and trial sales (commercialization).
7. Transition to mass production and implementation of a comprehensive marketing program.
Termination of production of goods
Always painful is the process of removing obsolete or unsuccessful products from production. This process is necessary because "losers" can slow down the development of production as a whole and take a lot of time and money from the company, which will never pay off. The removal of a specific product from production must be carried out according to the following scheme:
1. Selection of candidates for discontinuation:
Reducing sales volumes;
Decrease in the rate of profit;
Decreasing market share;
The emergence of a more perfect substitute product;
Rising production costs;
The need for constant monitoring by management to ensure break-even.
2. Collection and analysis of information for decision making:
Opening the reasons for the failure of the goods:
Are there ways to save the goods;
What will happen to the capital invested in equipment;
withdrawal losses;
How will the removal of the product from production affect.
3. The procedure for removing goods from production. It is necessary to notify customers in advance about the removal of goods from production. The retirement process must be carefully planned. A serious problem is the choice of the optimal time for the removal of goods from production.
Assortment policy is one of the most important tools and components of marketing in the struggle of an enterprise with competitors.
Commodity assortment (commodity nomenclature)- the totality of all product groups offered by the company to the market as a whole or to each segment separately. The product range consists of product groups; product categories; product lines; commodity units.
Product group- a set of goods and their types, grouped according to a certain combination, the most important of which is the similar purpose of the goods.
Commodity line (line)- a set of goods intended for the same customers, or sold through the same distribution channels or having the same price range.
Assortment position represents a specific unit of goods - model, brand or size.
In the field of assortment, the enterprise forms its own policy, which is part of the product policy.
Assortment policy - a set of decisions of the enterprise for a separate commodity unit, commodity group and for the entire assortment as a whole, the principles of assortment formation in order to achieve the company's goals. the main objective This policy consists in the fact that the assortment of the enterprise, on the one hand, most closely matches the demand of customers, on the other hand, allows the optimal distribution of the enterprise's resources and the greatest profit. Specific goals assortment policy can be.
Increasing sales by optimizing the assortment structure;
Increase in inventory turnover;
Achieving a competitive advantage due to a more attractive assortment for buyers;
Entering new markets;
Reducing the costs associated with the content of the assortment;
Formation of the company's image Problems assortment management:
The needs of customers are changing rapidly, so the company is forced to constantly update its range, and this requires additional resources;
Fierce competition leads to the fact that a new product introduced to the market does not have time to recoup the investment in its production and promotion;
Difficulty in predicting changes in consumer demand.
An enterprise needs to make decisions about several characteristics of its product range.
Latitude assortment - the number of assortment groups (subgroups or classes) of goods offered to these enterprises.
completeness assortment - the number of types of goods available in the assortment of the enterprise. Above, when assessing the breadth of the assortment, a classification feature of a higher level was considered - a group of goods. When evaluating completeness, types of goods are considered - a sign of a classification of a lower level. For example, in the assortment group household appliances the following types of goods are distinguished: refrigerators, washing machines, vacuum cleaners, electric shavers, etc.
Depth range - this is the number of varieties of goods (varieties, models, modifications, options) for each type of product. So, if a company offers toothpaste in three packages of different sizes with two flavors, then the depth of the assortment for this type of product is 6. The depth determines the ability of the assortment (and the company, respectively) to satisfy the same need of buyers from different segments, people with different tastes and preferences. In addition, a greater depth of assortment means a choice for the buyer, which increases the attractiveness of the company for him and, accordingly, the likelihood of a purchase. However, an excessive increase in depth makes it difficult to choose a buyer and increases the costs of the enterprise. In addition, different types of goods may require different depth of assortment.
Assortment structure - this is the ratio of certain sets of products (classes, subclasses, groups, subgroups, types or varieties) to their total number in the assortment of the enterprise (in percent). Indicators of the assortment structure can have cost and natural expression.
Assortment management is the activity of the relevant services of the enterprise to control, analyze and make managerial decisions in the field of marketing, sales and production in order to adapt the assortment to the needs of customers. The main processes that make up the assortment management are shown in Fig. 6.5.
6.7. Elimination of goods
An effective product policy provides for constant monitoring and regulation of the production program and product range. Control in this area of marketing activities is aimed at preventing a decrease in sales and improving the company's product range. The development of such corrective measures is preceded by an analysis of the reasons for the decline in sales, overstocking and reduced profits. The objective reasons for the decline in sales are the aging of the product, the change in the taste of consumers and the intensification of competition in commodity market. The elimination of these causes requires, as a rule, significant costs. If the company fails to stabilize the position of its product offering on the market, then it must develop a strategy for the elimination of goods (in the translation from the English eliminate - withdraw).
The task of the product elimination strategy is to highlight such products that look doubtful from the point of view of further attractiveness in the market and are subject to recertification. The results of the verification of such goods become the basis for decisions regarding the future fate of the goods: leave them in the product nomenclature or withdraw from production and withdraw from the market. Identified questionable goods must be analyzed life cycle, establish the level of efficiency of their further production.
The elimination strategy does not mean an unequivocal decision to leave the market or close production altogether. The following solutions are possible:
Development of measures for the functioning of the company in the conditions of the recession stage;
Withdrawal of assortment positions from the nomenclature and continuation of activities with the remaining assortment;
Removal of goods from the market.
To identify dubious and "aging" products, groups can be created to analyze the profitability of the product and market trends.
To make a decision to exclude a product from the product range, the following possibilities are considered: selling the product to other firms (if the product is popular); accelerated sale of the remaining inventory; service to former customers.
PRICE MANAGEMENT
In marketing, price is used as a tool to influence buyers, as a means of competition and as an indicator that ensures the profitability of a product. In this regard, the enterprise must not only calculate the prices for its goods, but also determine some price intent, form a pricing policy. Just calculating the price mathematically is not enough. In market conditions, in order to ensure the sale and profit from the product, the company must plan the market consequences of prices - the reaction from buyers, intermediaries, competitors. In addition, you need to coordinate all your price actions into a single system.
Price policy- is a system of decisions of the enterprise for the establishment and regulation of prices for its goods. The company determines the pricing policy, linking individual decisions into a single system: goals, strategies and methods of pricing, the relationship of prices within the range of the enterprise, the frequency of using discounts and price changes, the price ratio with competitors, and more (Fig. 7.1).
During the development of its pricing policy the enterprise considers the following questions: How will the prices for miscellaneous goods in the assortment of the enterprise? How will they compare to competitors' prices? Will prices be the same for all buyers or flexible? To whom and for what will discounts and offsets be provided?
As part of the overall pricing policy, pricing decisions are linked to the firm's target market, product image, and marketing structure.
Pricing policy helps to achieve short-term and long-term goals of the enterprise, coordinates price actions into a single system, maintains a stable image of the product and the company.
The basis for making decisions on prices should be the decisions already made before this on the product, target market, distribution system. Prices should correspond to the nature of the product and the market, the image of the company. Prices and pricing policy are strongly influenced by external factors: buyers, competition, distribution partners, government, costs.
In development and evaluation pricing strategy the enterprise should take into account both current and future goals of the enterprise's marketing activities. The choice of pricing strategy and pricing policy of the enterprise is based on an assessment of the priorities of its activities. Various strategies are inconsistent. The adoption of one of them, as a rule, leads to a negation of the advantages of the other strategy. Thus, the adoption of a strategy to increase the market share in the sale of the company's products is mostly associated with some price reduction against competitors' prices. Meanwhile, this leads to a decrease in income, which may turn out to be undesirable for the enterprise Orientation to customers with reliable solvency also for the most part forces to give up the level of prices.
A real assessment of market conditions, sales conditions and the company's capabilities often leads to the conclusion that the company's activities are oriented towards mixed pricing strategies. However, even here the problem arises of the correlation and scope of application of one or another pricing strategy.
The implementation of the pricing policy involves the following steps (Fig. 7.2):
Pricing Goals
Like other activities in marketing, the development of a pricing policy begins with setting its goals. Any commercial enterprise is ultimately aimed at making a profit. However, the specific goals pursued by enterprises when setting prices may be different. These goals depend both on the enterprise itself and on external factors mentioned in the previous question.
Specific goals may vary, but in general they can be grouped into three main groups (Fig. 7.3):
An enterprise with goals sales oriented, seeks to achieve high sales volume or increase its market share compared to competitors. These goals are set for three reasons:
The company is trying to increase sales in order to obtain greater profits in the future;
It is assumed that a large market share gives a competitive advantage, the ability to control the market;
A large volume of sales allows you to reduce costs per unit of production.
Gaining leadership in the market and in determining prices is the most active and prestigious goal of pricing policy, typical for large enterprises and associations. Of course, in order to take a leading position in the market, an enterprise must have sufficient capabilities and potential.
To achieve these goals, the penetration price is often used - low price designed to capture the mass market of the product. But it must be borne in mind that an increase in sales does not always lead to an adequate increase in profits. It may turn out that with an increase in volume, costs increase even faster. conquest big share market through low prices can lead to non-profit success. Therefore, such actions should be considered as intermediate on the way to profit.
Pricing policy can be determined by goals, income related:
1. Obtaining the required relative profit, i.e., profit per unit of production, or per 1 ruble of sales, or per 1 ruble of costs. The rate of return serves for the enterprise as a characteristic of the economic efficiency of individual goods and activities. The enterprise sets a profit margin for itself and, accordingly, may stop working with goods, buyers, intermediaries that do not provide this required rate.
High relative profit is ensured by large margins, high prices. High prices are calculated for a segment that is more concerned about the quality of the product, its status, than the price. In this regard, there are so-called prestigious goods and prestigious prices. It can also be special items.
2. Obtaining the required absolute profit, that is, the total amount of profit from all goods. In this case, it is more important for the enterprise how much profit it earns in total, and not on one product, so such a goal is often associated with low prices.
3. Maximization of current profit: the company, not caring about the future, sets a price that will provide the greatest flow of current revenue and profit. Possible reason: Demand is expected to fall soon. In such cases, for the enterprise, current goals are more important than long-term ones. His position: "To extract everything that is possible from the product today, since tomorrow interest in the product may abruptly disappear." It can be trendy goods and short-term consumer hobbies (Rubik's cube).
An enterprise can strive for goals related to maintaining the status quo if adverse factors act external environment: the market is saturated and not growing, it has intense competition. The pricing policy of such an enterprise is aimed at preventing a decline in sales, smoothing out the negative impact of external forces, stability and, sometimes, survival. To retain customers, a business may have to lower its price in response to competitors. In order to maintain cooperation with channel participants in the face of rising costs, the manufacturer is forced to reduce its share in the price. In conditions of fierce competition and an unstable market, the task of an enterprise may be survival. To do this, lower prices. But such a policy should be temporary, as it has no potential. At the same time, it is necessary to look for opportunities for growth.
In addition to general goals, an enterprise may have different pricing goals for individual products and markets. An enterprise can pursue different price goals in relation to its old and new goods; in different market segments; selling a product in a traditional market and promoting it in a new market.
Components of a commodity policy. Assortment of goods and product nomenclature
Commodity policy is a field of activity to ensure cost-effective, profitable operation of the enterprise. It consists of segmentation, positioning, assortment definition, product nomenclature, product life cycle management, trademark decision making, packaging, quality assurance and product competitiveness. Segmentation is the selection of a part from a whole according to certain characteristics. Segment products, consumers, markets, competitors. Positioning is the placement of goods on the market, as well as the creation in the minds of consumers of certain incentives to purchase goods.
The commodity policy of the enterprise determines what goods and in what quantity should be produced, decides on the advisability of developing and manufacturing a new product. Depending on the customer, a business may manufacture existing products for new customers, manufacture new goods for existing customers, or manufacture new goods for new customers.
One of the main directions of commodity policy is to determine the optimal range of goods, as well as the development of a "commodity portfolio". A product range is a set of products various kinds and varieties, united by consumer, trade, production or material and technical characteristics. The types of assortment are industrial and commercial. To define the product range means to include in the production program those products that are oriented to the needs of the market and provide economic efficiency enterprise activities. These products bring profit to the enterprise and contribute to the achievement of a greater market share.
Quantitative indicators of the assortment are: structure; latitude; completeness; stability; degree of renewal. The assortment structure is a quantitative ratio of product groups, subgroups, types, varieties and names of individual products in a common set of products. Assortment structure indicators are indicators that have natural or monetary terms. They are calculated as the ratio of individual groups, types, names of goods to the total number of goods included in the assortment.
The breadth of the assortment is the number of types or varieties of goods included in the assortment under consideration. The breadth of the assortment is an indirect indicator of the saturation of the market with goods. The saturation of the market is the higher, the greater the breadth of the range.
The completeness of the assortment is the number of types, varieties and names of goods in a group of homogeneous products. The completeness of the assortment is characterized by the coefficient of completeness. The calculation of the completeness ratio is based on the ratio of the available assortment to the base one, determined by the supply contract, standards, assortment list. The completeness coefficient has the highest value in a saturated market. The higher the completeness of the assortment, the better the needs of the buyer are satisfied.
The stability of the assortment is characterized by fluctuations in the assortment during a specified period of time. The assortment depends on the level of development of industrial and agricultural production, as well as on the level of scientific and technological progress, which allows mastering modern scientific and technological achievements to improve the consumer properties of goods.
The product range management process includes:
carrying out activities to determine the scope and identify the structure of customer needs;
taking measures to take into account the demand for products and the level of material security of the population in order to establish the actual assortment corresponding to the calculated one;
meeting consumer needs;
winning new customers by expanding the scope of the existing production program, which involves lengthening the life cycle of obsolete goods by finding new markets; diversification of the areas of activity of the enterprise and the inclusion of non-traditional industries for it;
expansion of the areas of production and services of the enterprise, interconnected by a certain technology, a single qualification of personnel and other dependence;
release of a wide range of products at the same time, when the assortment set of products is divided into types that represent the final product production cycle (trucks, cars), subspecies according to functional features, quality level and price intended for certain categories of consumers or sale through certain distribution channels, forming a wide parametric range (cars with engines of different power), modifications into which product subtypes are divided and which represent the most detailed product classification that meets the needs of individual market segments (various finishes and colors of cars, etc.);
establishing the ratio of the simultaneous presence on the market of new products and products in different stages of growth, maturity and decline, the optimal ratio of basic models and their modified subspecies.
In the case of expanding the range of products, the company strengthens its position in the market, increases sales and can flexibly respond to the transition of goods from one stage of the life cycle to another. At the stage of implementation, the most popular, basic models that are in high demand are usually released to the market; at the growth stage, the range and parametric range of manufactured products are expanded; at the stage of maturity, a complete set of products of the entire parametric range is introduced. In the decline stage, the most popular models are left and taken care of their maintenance.
The commodity nomenclature is a set of all assortment groups of goods and commodity units offered to the buyer. It is characterized by depth, saturation, harmony, etc. Depth is the options for offering each individual product within the assortment group (if a product is offered in three different packaging, then the depth of its offer is three, but if it is also characterized by two different flavors, then sentence depth will be five). Saturation is the total number of constituents of the individual products of the enterprise. Harmony is the degree of proximity between products of different assortment groups in terms of their end use, distribution channels, etc.
A commodity unit is a separate integrity, which is characterized by price, volume, mass and quality indicators, for example, a woman's dress of a certain size; perfumes at a specified price, etc. The commodity unit is included in a separate assortment group. Women's suit is included in the assortment group women's clothing, perfumes - in the assortment group of perfumes. Several groups of the product range produced by the enterprise make up the product range of the enterprise.
The main factors determining the range of products of the enterprise, as well as the need to expand and diversify its product range, are:
research and development to create new, improved products and technological processes, taking into account the requirements of specific market segments;
changes occurring in the product range of competitors, since enterprises producing similar products also pursue a product policy and work to optimize the product range and update the product range. The enterprise, in order not to lose competitive positions or win them, should constantly be aware of changes in the product range of competitors;
optimal sales of a distribution network of several types of goods at the same time, which reduces distribution costs, attracts wholesale and retail buyers, reduces the risk of working with a limited range of goods, and reduces advertising costs;
development of trade on special orders of individual consumers, for example, individual production of products of certain properties and characteristics. In the future, these individual modifications can become an addition to the product range, contributing to the expansion of the product range of the enterprise.
Product diversification involves expanding the scope of the enterprise and the implementation of the production of a large number, as a rule, unrelated goods and services. The use of diversification ensures the sustainability and stability of the enterprise, as it serves as a guarantor against the risks of reduced demand and crisis phenomena in the production of one product or one industry. It allows you to use the management, production, marketing and other experience accumulated by other enterprises, increases the prestige of the enterprise, testifying to its success and financial capabilities.
The product policy of an enterprise is determined by the characteristics of the product range. An active product policy involves planning for the expansion and renewal of the product range. To expand its activities, the enterprise can expand the product range by including new assortment groups of goods; to increase the saturation of already existing assortment groups of goods; to deepen the product nomenclature due to a larger number of options from the available products; improve the harmony between products of different assortment groups.
If for a long time at the enterprise there are excessive production capacity; if the main profits of the enterprise give only two or three goods; if there is not a sufficient quantity of goods corresponding to the possibilities of the market and the volume of demand; if the sales and profits of the enterprise are constantly declining, the product policy needs to be changed.
The “commodity portfolio” developed by marketers is designed to solve problems of ensuring the production and market stability of the enterprise. It assumes the presence of several goods at the same time: those that are the main ones for the market; those that are most profitable and those that are most competitive and promising.
From the book Organization Theory: Lecture Notes author Tyurina Anna7. Commodity policy of the company Any organization engaged in the production of goods and services and their sale in the consumer market must implement its product policy. Thanks to her, the company plans the development of the production process, marketing, studying consumer
From the book Marketing author Loginova Elena Yurievna34. Essence and value of commodity policy. Essence and channels of product distribution Commodity policy is a complex multi-stage activity of a company. The main condition for the survival and prosperity of a company is the release of a new or modified product to the market. Essence
From the book Marketing: lecture notes author Loginova Elena Yurievna10. Essence and value of commodity policy. Formation of a commodity policy Commodity policy is a complex multi-stage activity of a company. The main condition for the survival and prosperity of a company is the launch of a new or modified product on the market. Essence
From the book Marketing. Lecture course author Basovsky Leonid Efimovich11. Export commodity policy Export - export of goods of domestic production outside the state or re-export of goods. Goods of domestic production may also include goods of foreign origin, previously imported into the country and subjected to
From the book Marketing: Cheat Sheet author author unknownCommodity assortment and commodity nomenclature Commodity assortment. Product range - a group of products that are closely related to each other, either due to the similarity of their functioning, or due to the fact that they are sold to the same groups of customers, or through the same types.
From the book Exhibition Management: Management Strategies and Marketing communications author Filonenko Igor From the book Marketing author Rozova Natalya Konstantinovna3.4. Exhibitions and trade policy tools An exhibition, due to the simultaneous participation of enterprises with the same type of supply structure, allows the enterprise to adjust its product policy: assess the quality of its product/service, adjust
From the book Commodity policy of the enterprise author Melnikov IlyaQuestion 49 Assortment and nomenclature of goods Answer To streamline the variety of goods produced by the company, from the standpoint of the similarity of the marketing tools used, the concepts of “commodity unit”, “assortment group” and “commodity
From the book Commodity Information author Melnikov IlyaCommodity policy of the enterprise
From the book Marketing Pipeline [snippet] author Ivanov LeonidCommodity policy of the enterprise In the marketing activities of the enterprise, the commodity policy occupies the main place, since it is the product, its quality, assortment set, life cycle features, novelty, packaging that determine the competitive position of the enterprise and
From the book Marketing for Top Managers author Lipsits Igor VladimirovichCommodity Information
From the book Hunt for the buyer. Sales Manager's Tutorial author Derevitsky Alexander A.Properties of commodity information The manufacturer of the goods is obliged to provide the consumer in a timely manner with all the necessary, sufficient and reliable information about the offered goods, ensuring the possibility of their choice (information on safety,
From the book Advantage of networks [How to get the most out of alliances and partnerships] the author Shipilov AndreyProduct concept of marketing This concept can be called "What I see - about that I sing." We make refrigerators - we work in the market of refrigeration equipment. We will sell pipes on the pipe market, and, for example, tours to Italy, on the tourist services market. The only merit of this
From the author's bookIdea No. 47 How to keep customers when it is almost impossible to change the range of goods? Assortment management is a task so complex that it is impossible to offer a single method for its solution. Therefore, along with the algorithms that were discussed when discussing the idea
From the author's bookCommodity Argument At this stage, I am relatively calm. You know your product, don't you? Before we play argumentation, let's go over its basic rules. There are few of them.1. Alternate strong and weak sides arguments.2. Repeat decisive arguments.3. Avoid
For beginners: breeding a broiler at home Boiled water for broilers
Only lovers will survive
Features of advertising aimed at children
retouching old photos in photoshop retouching old photos
What is an NPO: decoding, definition of goals, types of activities Does a non-profit organization have the right