The Benefits of Assortment Strategy
In a rapidly changing retail market, an optimized shelf is a crucial component for maximizing category sales and driving wins for shoppers, retailers and manufacturers. Shopper dynamics are shifting towards a preference for simpler, more focused shopping experiences.
Retailers, in response to these trends, are actively adjusting the management of their categories. Manufacturers must also continuously adapt their assortments across retailers in order to remain competitive. Achieving an efficient assortment is crucial for all parties involved in the consumer packaged goods industry.
An assortment solution must then be not only robust but adaptable and flexible.
The Industry Leading Assortment Tool
Developed by Kantar Retail, RichMix® is the industry leading efficient assortment tool that uses in-depth analytics to measure the incremental impact of changing items and facings in a retailer mix. It has been designed for either manufacturers or retailers to help them optimize their product mix and shelf space.
RichMix® is the nationwide reference tool for assortment strategy among key stakeholders involved in category management. Buyers and retailers trust RichMix®'s recommendations to decide what items to carry, add or delist.
By using RichMix® you are assured of performance and credibility.
What is Incrementality?
At the heart of RichMix® lies the notion of incrementality. Incrementality is about identifying variety versus duplication -- the higher a SKU’s incrementality, the more unique it is in the context of a given assortment. Incrementality is therefore context-dependent. Understanding incrementality will drive value as it enables you to align category strategy with unique shopper dynamics. It is based on the number of similar alternatives in the assortment. The more similar alternatives – or substitutable items – that exist in an assortment, the less incremental an additional SKU will be.
What are Transferrable Demand Curves?
Transferrable demand curves are the backbone of RichMix®. A transferrable demand curve models consumer preferences and switching behavior. Curves are made of the following characteristics:
- Syndicated data, weekly level, 2 years of data
- Shopper Card data of over 60 million households trended over 13 years for more than 15 retailers