In the world of seamless connectivity, consumers are less brand loyal and are relying on online, mobile, and social channels to find alternatives for the products they are looking for. To meet the rising preferences of the consumers, retailers are resorting to robust strategies to lure their choices. Retailers are also relying on assortment optimization to control the inventory the buyers can purchase. Assortment optimization delivers better merchandise planning goals by promising flexible product attributes to customer segments, planning collections on a localized basis, and grouping stores based on customer preferences. In addition, assortment optimization enables retailers to track an assortment of competitor products in real-time easily.
Quantzig’s assortment optimization study helped the client meet local consumer preferences. The engagement also helped the client implement strategies that ensure their consumers find the right product, at the right time, and the right location without compromising their sales margins.
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The Business Challenge
A global retailer was facing challenges in improving assortment planning as a part of the overall merchandising transformation initiative. The client wanted to better analyze the product’s performance and develop detailed sales, margin, and inventory plans for key items. The primary objective of the engagement was to determine the type of products, define initial buy quantity, and develop robust inventory plans for items.
Quantzig’s assortment optimization experts carried out extensive research by segmenting the products into tiers to assess sales performance. To derive better insights, the client developed a robust assortment strategy based on sales per style within each tier, each quarter, and each attribute. The products were also grouped into 12 attributes based on the product’s hierarchy and the seasonality.
Assortment Optimization Solution Benefits
- Analyze and compare competitive product assortment by brand
- Analyze the prices of identical products
- Track real-time assortment changes for the competitors
- Initialize plans and make recommendations based on customer attribute preferences
- Identify the right mix of products based on consumers preferences
Want to know more about assortment optimization solutions and how they can benefit you? Speak with our analytics experts today.
Assortment Optimization Solution Predictive Insights
- Gain valuable insights on how competitive the product’s assortment is
- Retailers compete more effectively and increase sales and profit margins
- Adjust their product mixing based on competitors’ product assortment
- Stay relevant to their target audience