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Articles
Beyond Product Planning: Assortment Planning
(Part II of Series) (cont.)
Automation Facilitates a
Comprehensive Plan
To
build a comprehensive assortment plan, details
in a number of areas come into play, and the
planner could not realistically manage that
level of detail without an automated system.
The automated system makes it possible to
address dozens of parameters in these four key
areas:
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Product
Attributes. – This set of parameters
helps the retailer relate to the customer,
by factoring into the plan brand, vendor,
fabric, silhouette, pricepoint, and theme.
These parameters enable the planner
to tailor the assortment and build the
proper relationships among the various
components.
For example, the planner can
determine the right percentage of brands,
the right quantity of each brand, and
similar calculations. |
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Store
Structure/Store Characteristics -
These parameters enable the planner to
categorize stores into groups, a critical
step before one can define product
assortments.
Grouping by the size, volume, and
type of store, the climate, and the
customer type helps the planner meet each
store’s particular demands.
The store characteristics are
pivotal in micro marketing and they also
support distribution to the stores. |
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Time
Dimension/Product Seasonality - The
time dimension for an assortment plan
considers the usual week, month, and
season definition, along with product
transition and crossover between seasons.
But assortment planning also needs
smaller time periods or mini-seasons such
as back-to-school, holiday, and summer
clearance.
These overlapping time periods
consider events and/or time periods that
help define the product characteristics
needed to address customer demand. |
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Space
Dimensions/Space Utilization - As the
assortment plan develops, it allocates
available space based on the product
definition.
Factors such as the number of
styles and quantities of each style will
affect space utilization. Product
dimensions, product density, product
display requirements, store structure,
store layout, store “look,” and visual
merchandising all affect the space plan
and, consequently, the assortment plan as
well. |
Managing the Volume of Detail
To
handle all of the calculations in these key
areas, assortment planning systems that go
beyond simple spreadsheets are becoming
available for retailers.
These systems apply the automation
necessary handle the voluminous and tedious
detail necessary in today’s assortment
planning process.
Because these systems can churn through
the calculations in all of these areas,
retailers are better able to develop a good
assortment plan.
This
article was first published for
Retek
Inc.
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