You can recommend three products to cater for a whole range. There are times when this might be the reality, Convenience stores and Food to go fixtures are examples where condensed offerings are needed as space is limited. What are the considerations to be able to make a credible recommendation?
Minimum Credible range
What is the minimum choice of product a customer would expect from a category? For something like crisps it might be covering key flavours like salt, salt and vinegar, cheese and onion. Ice cream tubs could be strawberry, chocolate and vanilla. Some categories it might just be one product such as table salts, could you bring the minimum down to one or two products?
Product ranking
Ranking the products in priority order of appearing in plans can be a good way to work through the ranging options with limited space. Starting with the minimum credible range, perhaps they are top sellers, have wide appeal and the minimum expectation to be available. Then building into this more products in the priority order they should be appearing in plans and making it onto a shelf.
Usage over rate of sale
If you put all the best selling products in a category in the limited space available is that going to offer a customer all the choices they might need within that category? Could you end up with three brand iterations of white bread if you just looked at best sellers in the market? Would your chicken range just comprise of chicken breasts? You need to consider the structure of the category and the different usage occasions. A product type that makes up 25% of sales vs another type making up 75% may require a presence. Thinking about the different product usage occasions in a small range is important. This might also include different pack sizes and tiers that need to be considered. How important are they in the total category? Is this appealing to a different customer? Should they appear in small plans?
Its not easy
This is some of the hardest ranging work that needs to be done and there will always be an argument to include product X in small plan over product Y. Looking at the mix of the whole category, considering the key missions for the store and having a clear rationale will help you work through the recommendations.
Comments