The breadth of the assortment is the number of types, varieties and names of goods of homogeneous and heterogeneous groups.
This property is characterized by two absolute indicators - actual and basic latitude, as well as a relative indicator - the latitude coefficient. Commercial activity of an enterprise: strategy, organization, management / Edited by V.K. Kozlova, S.A. Uvarov. - St. Petersburg, 2001. P. 210..
Actual latitude (W) -- the actual number of types, varieties and names of goods available (d).
Base latitude (Bb) is the latitude taken as the basis for comparison. The number of types, varieties and names of goods regulated by regulatory or technical documents (standards, price lists, catalogs, etc.), or the maximum possible, can be taken as the base latitude. The choice of criteria for determining the basic indicator of latitude is determined by the goals. For example, when analyzing the assortment policy of competing stores, you can take as a base the maximum list of goods available in all surveyed stores.
The breadth coefficient (Ksh) is expressed as the ratio of the actual number of types, varieties and names of goods of homogeneous and heterogeneous groups to the base one.
Breadth can serve as an indirect indicator of market saturation with goods: the greater the breadth, the greater the saturation. Breadth indicators are used depending on market saturation, as well as on the state of demand. In conditions of shortage, when demand exceeds supply, it is more profitable for the manufacturer and seller to have a narrow range of goods, since a large range requires additional costs for the development and production of new goods. In addition, the production of various goods requires more extensive purchases of raw materials, expansion of production space, new types of packaging, and labeling. In trade, a wide assortment requires additional space on the sales floor for displaying goods; in addition, transportation costs increase.
In a saturated market, manufacturers and sellers strive to meet diverse needs. When demand exceeds supply, commercial efforts are required to create consumer preferences, which is achieved through, among other means, increasing the breadth of assortment. Breadth acts as one of the criteria for the competitiveness of firms.
Thus, for manufacturers and sellers, expanding the range is more a forced measure than a desirable one.
What is the consumer’s attitude to the breadth of assortment? On the one hand, the wider the range, the more diverse needs can be satisfied. On the other hand, with an extremely wide range of products, it is difficult for the consumer to navigate this variety, which makes it difficult to choose the right product. Therefore, breadth cannot serve as the only indicator of the rationality of the assortment.
Assortment of goods is a set of goods formed according to certain characteristics and satisfying diverse, similar and individual needs.
Assortment breadth – the number of types, varieties and names of goods of homogeneous and heterogeneous groups.
The breadth of coverage of goods included in the assortment is determined by the number of groups, subgroups, types, varieties, brands, types, names.
Depending on the breadth of coverage of goods, the following types of assortment are distinguished: simple, complex, group, expanded, accompanying, mixed.
To determine the latitude coefficient, the following formula is used (1):
where is the latitude coefficient
The actual latitude, i.e. the number of types, varieties or names of goods available;
– base latitude, i.e. the basic number of types, varieties or names of goods taken as the basis for comparison.
Completeness of assortment is the ability of a set of products of a homogeneous group to satisfy the same needs.
To determine the completeness coefficient, formula (2) is used:
=( : ) 100,% (2)
where is the completeness coefficient,
Real completeness
Basic completeness.
Assortment stability is the ability of a set of goods to satisfy demand for the same goods. A feature of such goods is the presence of a stable demand for them.
The stability coefficient is calculated using formula (3):
where is the stability coefficient;
Y is an indicator of stability, i.e. number of types and names of goods that are in steady demand;
Base latitude.
Novelty (updating) of the assortment is the ability of a set of goods to satisfy changing needs through new products.
Therefore, the novelty coefficient is calculated using formula (4):
where is the coefficient of novelty;
N - number of new types and names of goods;
– actual latitude.
Depth of assortment- determined by the number of varieties of goods for each item. The assortment depth coefficient is estimated using formula (5):
K g = R f / R n,% (5)
where R f - the actual number of varieties of goods at the time of inspection, units;
R n - the number of varieties provided for by the assortment list, terms of the contract, price lists, etc., units.
Rationality coefficient - the weighted average value of the rationality indicator, taking into account the real values of indicators, breadth, completeness, stability and novelty, multiplied by the corresponding weight coefficients, is determined by formula (6):
where is the latitude coefficient;
– completeness factor:
Stability factor;
Novelty factor;
Weight coefficients of indicators.
The structure of the assortment is characterized by the specific share of each type and name of product in the total set. In the methodology for assessing the optimal assortment structure, one should take into account: the method of calculating the share of goods;
Selecting a base value as a criterion for optimal
assortment structure;
Selecting an indicator of the optimal structure.
The assortment structure is determined by formula (7):
where is the number of individual goods in physical or monetary terms;
The total quantity of all goods available in physical or monetary terms.
Indicators of the assortment structure can be expressed in kind or in money and are relative in nature. They are calculated as the ratio of the number of individual goods to the total quantity of all goods included in the assortment.
Table 5 – Assortment sold in the Orange store.
| Name of margarine | Manufacturer | Weight, g | price, rub. |
| Creamy margarine hostess 65% fat | 16,90 | ||
| Homemade packaged margarine Evdakovsky | OJSC Evdakovsky Oil and Fat Plant | 30,00 | |
| Margarine Rama plastic 65% fat | Unilever LLC | 13,00 | |
| Margarine Pyshka 75% fat | Unilever LLC | 21,70 | |
| Milk margarine 82% fat | Zaporozhye Oil Processing Plant | 41,00 | |
| Homemade creamy margarine 40% fat | OJSC Nizhny Novgorod Oil and Fat Plant | 9,60 | |
| Homemade table margarine 26% fat | Lviv fat-packing plant | 38,00 | |
| Margarine Chudesnitsa 55% fat | Holding "Solar Products" | 6,50 | |
| Special sunny margarine 72% fat | Generously | 29,00 | |
The highest price is for milk margarine with 82% fat content, which is 41.00 rubles, the lowest price is for margarine “Chudesnitsa” with 55% fat content, which is 6.50 rubles.
Table 6 – Analysis of the assortment according to nomenclature quality indicators.
| Indicator name | Indicator value | Shop "Orange" |
| Base latitude | Shb | |
| Actual latitude | Shd | |
| Latitude coefficient | Ksh=Shd/Shb | |
| Basic completeness | Pb | |
| Real completeness | front | |
| Completeness factor | Kp=Pd/Pb | |
| Sustainability | U | |
| Stability factor | Ku=U/Shb | |
| Novelty | N | |
| Novelty factor | Kn=N/Shb | |
| Depth | Kg=Rf/Rn | 0,6 |
| Rationality | 157,5 | |
| Structure | Ci=Fi/Ci | 1,3 |
Analysis of the assortment according to the nomenclature quality indicators of the Orange store showed that the breadth coefficient is 80%. This suggests that the range is represented quite widely. The completeness factor is 60%. This means that this organization works actively with suppliers.
The sustainability factor is 60%. This suggests that this assortment group is quite stable. The novelty factor is 20%. This means that the range of margarine is updated very little. Calculation of assortment indicators is given in Appendix A.
The process of forming an assortment of goods begins with determining the breadth of the assortment of goods sold in it, that is, the number of product groups. Then the depth of the assortment is determined, that is, the number of types and varieties of goods within each group.
The assortment structure is the percentage of certain sets of products to their total quantity.
Indicators of assortment structure are often expressed as percentages. For example, the percentage of bread, dried goods, cakes and other products determines the type structure of the assortment in the “Bread, bakery products” department.
Width of assortment.
The breadth of the assortment is determined by the number of product groups and is assessed by the breadth coefficient:
Ksh = Gf / Gn
§ where Gf is the number of groups of goods at the time of determination, units; Gn -- total number of product groups, units.
Completeness of assortment.
The completeness of the assortment is the correspondence of the actual availability of types of goods to the developed assortment list and existing demand.
The assortment completeness is expressed through the assortment completeness coefficient Kp, which is determined by the formula:
Kp = Vf / Vn
§ where Vf is the actual number of types of goods at the time of inspection (inspection), units; Vn - number of types provided for in the assortment list, supply contract, standards, etc., units.
Depth of assortment.
The depth of the assortment is determined by the number of varieties of goods for each item. The assortment depth coefficient is estimated using the formula:
Kg = Rf / Rn
§ where Рф is the actual number of varieties of goods at the time of inspection, units; Рн - the number of varieties provided for by the assortment list, terms of the contract, price lists, etc., units.
Stability of the assortment.
Sustainability (stability) characterizes the constant availability of a product of the corresponding type (variety) for sale. The stability coefficient Ku is determined by the formula:
Ku = 1 -- (R"f1 + R"f2 + ... + R"fn / Rn Ch n)
§ where Р"ф1, Р"ф2,...,Р"фn - the actual number of varieties (types) of goods from those provided for in the assortment list and not available for sale at the time of individual checks, units; Рн - number of varieties (types) ) goods provided for in the assortment list, units; n - number of checks.
The assortment stability coefficient is usually determined for a specific period (month, quarter, year). It has been established that the optimal coefficient of stability of the assortment should be expressed by the following values: for department stores - 0.80; for specialized stores - 0.75.
New assortment.
Novelty characterizes the emergence of new varieties of goods over a certain period of time and is assessed by the novelty coefficient Co:
Ko = Ro / Rf
§ where Po is the number of new varieties of goods that appeared at the time of inspection, units; Russian Federation - average number of varieties, units.
The novelty coefficient characterizes the degree of renewal of the assortment and the emergence of new products.
Conclusion: Based on Appendix 9, it follows that the breadth of assortment is 78.5%, which indicates the average intensity of saturation of the enterprise with other types of goods. The completeness of the assortment is 63.8%, which indicates high market saturation. Therefore, for this situation, the indicator of assortment completeness can be considered rational. The stability coefficient is 64.2%, and, therefore, 45 items out of a possible 70 are in steady demand. The novelty coefficient is 21.4% due to the introduction of new products into the assortment list. This indicator is rational; updating the assortment allows you to more fully satisfy the needs of customers and expand the assortment, creating a competitive advantage for the enterprise.
Completeness of assortment is the ability of a set of goods of a homogeneous group to satisfy the same needs.
Completeness is characterized by the number of types, varieties and names of goods of a homogeneous group. Completeness metrics can be either real or basic.
The actual indicator of completeness is characterized by the actual number of types, varieties and names of goods of a homogeneous group, and the basic indicator is characterized by the regulated or planned number of goods
Completeness coefficient (Kp) is the ratio of the actual completeness indicator to the base one.
Indicators of assortment completeness are of greatest importance in a saturated market. The more complete the assortment, the higher the likelihood that consumer demand for goods of a certain group will be satisfied Prokofieva S.A. Commodity study of the organization of trade in food products, M.: ProfObrizdat, 2004..
Increased completeness of the assortment can serve as one of the means of stimulating sales and satisfying various needs caused by different tastes, habits and other factors.
At the same time, increasing the completeness of the assortment requires trade workers to know the commonality and differences in consumer properties of goods of different types, varieties and names in order to inform consumers about them. Providing such information to the seller is the responsibility of the manufacturer and/or supplier.
It should be taken into account that an excessive increase in the completeness of the assortment can also complicate the consumer’s choice, so the completeness must be rational.
Assortment stability is the ability of a set of products to satisfy demand for the same products. A feature of such goods is the presence of a stable demand for them.
Sustainability coefficient is the ratio of the number of types, varieties and names of goods that are in steady demand among consumers (PG) to the total number of types, varieties and names of goods of the same homogeneous groups (PD).
For example, three out of five types of cheese are in steady demand (see example above). Therefore, the stability coefficient is 60%.
Identification of goods that are in steady demand requires marketing research using observation methods and analysis of documentary data on the receipt and sale of various goods.
Consumers of sustainable products can be characterized as “conservative in tastes and habits.” Having evaluated a certain product, they do not change their preferences for a long time.
Manufacturers and sellers most often strive to expand the number of goods that are in steady demand. However, it should be borne in mind that tastes and habits change over time, so the sustainability of the assortment must be rational.
Novelty (updating) of the assortment is the ability of a set of goods to satisfy changing needs through new products.
Novelty is characterized by actual renewal - the number of new products in the general list (N) and the degree of renewal (Kn), which is expressed through the ratio of the number of new products to the total number of items of goods (or actual breadth).
Renewal is one of the directions of the organization’s assortment policy, and is carried out, as a rule, in a saturated market. However, even in a saturated market, updating the assortment may be a consequence of a shortage of raw materials and production capacities necessary for the production of previously produced goods.
The reasons that encourage the manufacturer and seller to update the assortment are: replacement of goods that are obsolete and not in demand; development of new products of improved quality in order to stimulate their purchase by consumers; design and development of new products that had no previous analogues; expansion of the assortment by increasing completeness to create a competitive advantage for the organization.
Consumers of new products are the so-called “innovators”, whose needs often change due to the desire to experience the novelty of objects. Often new products satisfy not so much physiological as psychological and social needs. Thus, the buyer of a new prestigious brand of car, who has an old model car that is suitable for use as a vehicle, satisfies primarily social needs.
It should be borne in mind that constant and increased updating of the assortment for the manufacturer and seller is associated with certain costs and the risk that they may not be justified, for example, a new product may not be in demand. Therefore, updating the assortment should also be rational.
The assortment structure is characterized by the specific share of each type and/or product name in the total set.
Indicators of the assortment structure can be expressed in kind or in money and are relative in nature. They are calculated as the ratio of the number of individual goods to the total quantity of all goods included in the assortment.
The assortment structure refers to the real or predicted assortment and is not applicable to the educational assortment, since it shows the relationship of the individual structural elements of the assortment through their quantitative ratio.
When regulating the assortment structure, one should take into account the economic benefits of the enterprise in the case of a predominance of expensive or cheap goods, the return on costs of their delivery, storage and sale, as well as the solvency of the consumer segment that the trade organization is targeting.
The choice of assortment structure indicators in one form or another is determined by analytical purposes. If it is necessary to determine the need for warehouse space, as well as space for displaying goods, then analyze the structure of the assortment in physical terms. When analyzing the profitability of individual types of goods, the structure of the assortment in monetary terms is taken into account Nikolaeva M.A. Commodity Research of Consumer Goods, M.: Infra-M, 2003. P. 161..
So, as mentioned earlier, an assortment is a set of goods that is formed according to certain characteristics in order to satisfy the diverse needs of customers. At the same time, there are several classification criteria by which the assortment is divided into certain types. The most significant features are: location of goods; breadth of product coverage; degree of satisfaction of needs; nature of needs.
Depending on the location of the goods, the following are distinguished:
production (industrial) assortment is a range of goods produced by a manufacturer based on its production capabilities;
trade assortment is a set of goods formed by retail, service and catering enterprises, taking into account the specifics of their activities, the nature of demand, the quantity and quality of available resources. The trade assortment, as a rule, consists of goods from different manufacturers. Exceptions may be company stores, the assortment of which is formed from goods from one manufacturer; As a rule, such stores are geographically located in close proximity to the manufacturer itself.
Depending on the breadth of coverage of goods, they are distinguished:
a simple assortment is a set of goods consisting of a small number of product groups, types and names of products, aimed at satisfying a small number of needs. Such an assortment is usually offered by small stores operating in the “shop near home” format, which offer everyday goods for sale;
complex assortment - includes a set of goods consisting of a large number of product groups, types, varieties and names of goods that can satisfy various needs. This assortment is formed by stores operating in the “supermarket” format, where the buyer can find a variety of goods, both food and non-food;
group assortment - consists of homogeneous products that have common characteristics and are aimed at satisfying similar needs. This assortment is formed by specialized stores that offer one or more product groups for sale. For example, a shoe store may offer shoes and accessories for sale;
product range - includes goods of various types and names that can satisfy similar needs. This assortment is offered for sale in highly specialized stores;
Brand assortment is a set of goods of the same type, but of different brands. For example, a furniture store may offer for sale furniture items with different brand names;
a comprehensive assortment is an assortment that includes a large number of different groups, types and names of goods, including branded and non-branded. Such an assortment is usually presented in large shopping centers or shopping and entertainment centers;
an accompanying assortment is a set of goods that are not the main ones for a given store and perform auxiliary functions. For example, a fine wine store might include gift wrapping in its offerings;
mixed assortment - a set of goods of different groups, types and names that satisfy different needs and are aimed at different groups of buyers.
According to the degree of satisfaction of needs, the following types of assortment are distinguished:
a rational assortment is a set of goods that fully satisfies the actual needs of customers and meets modern requirements of science, technology and technology;
optimal assortment - a set of goods that meets the tastes and preferences of customers and at the same time satisfies needs with maximum effect. This means minimizing costs for design, development, production and delivery to the end user.
Depending on the nature of the needs, there are:
real assortment is the assortment of a specific manufacturer or seller that exists today;
the forecasted assortment is a set of goods that should be available in the future, taking into account changing customer needs;
educational assortment is a set of products systematized according to scientifically proven criteria in order to achieve a learning effect. Such an assortment, as a rule, is formed in retail outlets that operate at educational institutions and are created for students to undergo various types of internships.
Speaking about the assortment, it is necessary to dwell on its properties and indicators that allow it to be analyzed.
Thus, the property of an assortment is its specific feature, which manifests itself during its formation, and the assortment indicator is a quantitatively measurable expression of its properties. In this case, not only the assortment of the store as a whole is subject to measurement, but also its groups, subgroups and product categories.
The key property of an assortment is its width; it is characterized by two indicators: actual width and base width. The actual assortment width is the actual number of product groups, subgroups and categories available in the store. The base width is the width taken as a basis. The width of the assortment of the most successful competitor, the maximum possible width or the width regulated by regulatory documents can be taken as a basis.
The next property of the assortment is its depth. It is characterized by such indicators as the number of types of subgroups and product categories included in one product group and aimed at satisfying homogeneous needs.
The next property of the assortment is its sustainability, which means the ability of the assortment to satisfy demand for the same goods over a long period of time. An indicator of the sustainability of the assortment is the sustainability coefficient. It is calculated as the ratio of the number of product groups, subgroups and categories that are in steady demand to the total number of product groups, subgroups and categories presented in the store.
Another property of the assortment is its renewal, or novelty, i.e. the ability of the assortment to satisfy new needs by including new products in the store’s assortment matrix. The novelty of the assortment is characterized by such indicators as actual updating of the assortment and the degree of updating of the assortment. Actual assortment renewal is the number of new products presented in the store's assortment, and the degree of renewal is the ratio of the number of new products to the total number of products.
The final property of the assortment is its rationality, which expresses the ability of the assortment to most fully satisfy the needs of various customer segments. The rationality of the assortment, in fact, includes all other indicators of the assortment - breadth, depth, stability and novelty - and depends on the format and concept of store development.
For clarity, we present all the properties and indicators of the assortment in the table.
Assortment indicators can influence the degree of customer satisfaction and, in general, the commercial performance of the store.
Thus, by the breadth of the assortment one can judge the degree of market saturation with goods, and the greater the breadth of the assortment, the greater the saturation of the market. The breadth of the store's assortment must correspond to the level of demand. In conditions of shortage of goods, when demand exceeds supply, it is beneficial for stores to have a narrow assortment, since a wider assortment requires additional costs. A wide range requires additional retail and warehouse space, transportation costs, etc. This situation could be observed under the conditions of a command-administrative economic system, when the assortment of Soviet stores during the period of total shortage was extremely narrow.
Table
Properties and indicators of the assortment
| Properties | Indicators | Calculation of coefficient |
| Depth - real; - basic | Actual number of subgroups and product categories in a homogeneous product group (P d) Basic number of subgroups and product categories in a homogeneous product group (P B) Depth coefficient (K g) | K g = P d / P B * 100% |
| Latitude - real; - basic | Number of species, varieties, names available for sale (W d) Basic number of types, varieties, names of goods (W B) Latitude coefficient (K w) | K w = W d / W B * 100% |
| Number of new types and names of goods (N) Degree (coefficient) of renewal (Kn) | K n = N/Sh d * 100% |
|
| Sustainability | Number of types and names of goods in steady demand (U) Stability coefficient (Ku) | K y = U/W d * 100% |
| Rationality (R) | Rationality coefficient (Кр) | K r = (K g * VG + K w * VSh + K n * VN + Ku * VU) /4, where VG, VSh, VU, VN are the weighting coefficients for indicators of depth, breadth, novelty, stability |
However, in a market economy, when the supply of goods exceeds demand, a wide range is one of the factors of competitiveness, as it allows satisfying the diverse needs of different customer segments.
Assortment stability shows how long products of certain groups, subgroups and categories are included in the store’s assortment.
The stability of the assortment is determined by the following factors:
the presence of stable demand for a certain product;
inventory replenishment schedule;
absence or insufficient volume of demand for slow-moving and illiquid goods;
discrepancy between demand and the amount of available inventory.
At the same time, the timing of the sale of goods cannot be used as indicators of the sustainability of the assortment when assessing its rationality. There are situations when updating the assortment is a necessary condition for the successful development of a store, for example, if it is necessary to replace obsolete and unclaimed products with technically improved ones that are in demand among customers. It must be remembered that updating the assortment is a rather costly and risky undertaking, which does not always bring the expected results, since the new product may not find its buyer and will not be in sufficient demand.