What does the word matrix mean in trading. Encyclopedia of Marketing. BCG matrix: an example of construction and analysis in Excel

Enterprises that produce goods or provide services in a large assortment are forced to conduct comparative analysis business units of the firm to decide on the allocation of investment resources. The maximum financial investments are received by the priority area of ​​the company's activity, which brings the maximum profit. The tool for managing the product range is the BCG matrix, an example of the construction and analysis of which helps marketers make decisions about the development or liquidation of the company's business units.

The concept and essence of the BCG matrix

Formation of long-term plans for the company, proper distribution financial resources between the components of the firm's strategic portfolio occurs through the use of a tool created by the Boston Consulting Group. Hence the name of the tool - the BCG matrix. An example of building a system is based on the dependence of the relative market share on its growth rate.

The market share is expressed and is plotted along the X axis. An indicator is considered high if its value is greater than one.

The attractiveness and maturity of the market is characterized by the value of its growth rate. Data for this parameter is plotted on the matrix along the Y axis.

After calculating the relative share and market for each good that the firm produces, the data is transferred to a system called the BCG matrix (an example of the system will be discussed below).

Matrix quadrants

When product groups are distributed according to the BCG model, each assortment unit falls into one of the four quadrants of the matrix. Each quadrant has its own name and recommendations for decision making. Below is a table consisting of the same categories as the BCG matrix, an example of the construction and analysis of which cannot be done without knowing the features of each zone.

Wild cats New Products Zone. High level of sales. The need for investment for further development. V short term, low rate of return.	Growing market leaders. High level of sales. Growing profit. Significant investment.
Unpromising group, failed or products of an unattractive (falling) market. Low income. Desirable disposal of them or termination of investment.	cash cows Goods of the market with a falling level of sales. Stable profit. Lack of growth. Minimum cost to hold positions. for promising product groups.

Objects of analysis

An example of the construction and analysis of the BCG matrix is ​​impossible without the definition of goods that can be considered in the projection of this system.

1. Lines of business that are unrelated. These can be: hairdressing services and the production of electric kettles.
2. Assortment groups of the company sold in one market. For example, selling apartments, renting apartments, selling houses, etc. That is, the real estate market is considered.
3. Goods classified in one group. For example, the production of utensils made of glass, metal or ceramics.

BCG matrix: an example of construction and analysis in Excel

For determining life cycle goods and strategic planning marketing activities enterprises will consider an example with fictitious data to understand the topic of the article.

The first step is to collect and tabulate data on the analyzed products. This operation is simple, you need to create a table in Excel and enter data on the enterprise into it.

The second step is the calculation of market indicators: growth rate and relative share. To do this, you will need to enter formulas for automatic calculation in the cells of the created table:

• In cell E3, which will contain the value of the market growth rate, this formula looks like this: \u003d C3 / B3. If you get a lot of decimal places, then you need to reduce the bit depth to two.
• The procedure is the same for each item.
• In cell F9, which is responsible for relative market share, the formula looks like this: = C3 / D3.

The result is a completed table.

The table shows that sales of the first product fell by 37% in 2015, while sales of product 3 increased by 49%. Competitiveness or relative market share for the first category of goods is lower than that of competitors by 47%, but for the third and fourth goods it is higher by 33% and 26%, respectively.

Graphic display

Based on the data in the table, a BCG matrix is ​​constructed, an example of construction in Excel of which is based on the choice of a chart of the “Bubble” type.

After selecting the type of chart, an empty field appears, by clicking the right mouse button on which you need to call up a window for selecting data to fill in the future matrix.

After adding a row, its data is filled in. Each row is a product of the enterprise. For the first item, the data will be as follows:

1. The row name is cell A3.
2. X-axis - cell F3.
3. Y-axis - cell E3.
4. The bubble size is cell C3.

This is how the BCG matrix is ​​created (for all four goods), the example of constructing other goods is similar to the first one.

Change the format of the axes

When all products are displayed, it is necessary to break it into quadrants. This distinction is the X, Y axes. You only need to change the automatic settings of the axes. By clicking on the vertical scale, the “Format” tab is selected and the “Format Selection” window is called up on the left side of the panel.

Changing the vertical axis:

• The maximum value is the average ODR multiplied by 2: (0.53+0.56+1.33+1.26)/4=0.92; 0.92*2=1.84.
• The main and intermediate divisions are the average ODR.
• Intersection with the X-axis - average ODR.

Changing the horizontal axis:

• The minimum value is assumed to be "0".
• The maximum value is taken as "2".
• The remaining parameters are "1".

The resulting diagram is the BCG matrix. An example of the construction and analysis of such a model will give an answer about the priority development of the company's assortment units.

Signatures

To complete the construction of the BCG system, it remains to create labels for the axes and quadrants. It is necessary to select the diagram and go to the "Layout" section of the program. Using the "Inscription" icon, the cursor is moved to the first quadrant and its name is written. This procedure is repeated in the next three zones of the matrix.

To create a chart title, which is located in the center of the BCG model, the pictogram of the same name is selected, following from the "Inscription".

Following from left to right on the Excel 2010 toolbar of the "Layout" section, similarly to the previous labels, axis labels are created. As a result, the BCG matrix, an example of construction in Excel of which was considered, has the following form:

Analysis of assortment units

Building a diagram of the dependence of market share on its growth rate is half the solution to the problem. The crucial moment is the correct interpretation of the position of goods on the market and the choice further action(strategies) for their development or liquidation. BCG matrix, analysis example:

Product No. 1, located in the zone of low market growth and relative share. This commodity unit has already passed its life cycle and it does not bring profit to the company. In a real situation, it would be necessary to conduct a detailed analysis of such goods and determine the conditions for their release in the absence of profit from their sale. Theoretically, it is better to exclude this commodity group and direct the freed up resources to the development of promising benefits.

Product #2 is in a growing market but requires investment investments to increase competitiveness. It is a promising product.

Product #3 is at the peak of its life cycle. This type assortment unit has high performance SDR and market growth rates. An increase in investment is required so that in the future the business unit of the company that produces this product brings a stable income.

Product No. 4 is a profit generator. Cash, coming to the company from the sale of this category of the assortment unit, it is recommended to direct it to the development of goods No. 2, 3.

Strategies

An example of the construction and analysis of the BCG matrix contributes to the selection of the following four strategies.

1. Increase in market share. Such a development plan is acceptable for products located in the Wild Cats zone, with the aim of moving them into the Stars quadrant.
2. Maintaining market share. For getting stable income from "Cash Cows" it is recommended to apply this strategy.
3. Decreasing market share. Let's apply the plan to weak "Cash Cows", "Dogs" and unpromising "Wild Cats".
4. Liquidation is a strategy for the "Dogs" and unpromising "Wild Cats".

BCG matrix: an example of construction in a Word

The method of building a model in Word is more laborious and not entirely clear. An example will be considered according to the data that was used to build the matrix in Excel.

Product	Revenue, monetary unit		leading competitor, cash units	Estimated indicators		Market growth rate, %
	2014	2015		Market Growth Rate	Relative market share

The column “Market growth rate” appears, the values ​​of which are calculated as follows: (1-growth rate data) * 100%.

A table is built with four rows and columns. The first column is combined into one cell and signed as "Market Growth Rate". In the remaining columns, you need to combine rows in pairs to get two large cells at the top of the table and two rows left at the bottom. As shown.

The lowest line will contain the coordinate “Relative market share”, above it - the values: less or more than 1. Referring to the data of the table (to its last two columns), the definition of goods by quadrants begins. For example, for the first product, ODR = 0.53, which is less than one, it means that its location will be either in the first or in the fourth quadrant. The market growth rate is a negative value equal to -37%. Since the growth rate in the matrix is ​​divided by a value of 10%, then product number 1 definitely falls into the fourth quadrant. The same distribution occurs with the remaining assortment units. The result should match the Excel chart.

The BCG matrix: an example of construction and analysis determines the strategic positions of the company's assortment units and participates in making decisions about the allocation of enterprise resources.

A point of sale can be positioned as a store with the widest range or the lowest prices, a boutique with premium branded goods, etc.

Conducting demand research and consumer segmentation

To identify exactly your buyer and understand his interests, fears and motivation for purchases, segmentation is carried out. To do this, all consumers are divided into different groups, united by certain characteristics. The choice of parameters for classification is determined taking into account the features, advantages and cost of the product, geographical coverage, format outlet.

Segmentation of consumers can be carried out by gender, age, income level, type of occupation, social position, place of residence, interests, behavioral and other factors. Segmentation can be carried out for a store or a chain of stores, as well as for different product groups.

For example, customer segmentation is carried out for the network construction stores. To promote this direction, you can select a group of corporate clients ( construction companies, teams of builders providing repair and finishing services, etc.) and individual buyers (purchasing building materials for self-repair of their home).

Each of these groups can be divided into subgroups. Next, the demand is studied and with the study of the number and volume of purchases made different groups(such data can be obtained by studying competitors or analyzing your own sales for previous periods). If the study reveals clear advantage corporate clients in terms of volume and number of purchases, then when forming assortment matrix focus on professional products and equipment.

Segmentation is carried out in several stages:

1. Definition of segmentation criteria. Selection of the most important parameters from the maximum list of possible characteristics, allowing to divide all consumers into homogeneous groups.
2. Using the selected segmentation features, you need to highlight loyal and disloyal customers. Such a division will allow us to analyze the high and low loyalty of the target audience in terms of social, demographic, behavioral and other factors.
3. Drawing up a portrait of the target consumer of your competitors. You can analyze the target consumers of those competitors whose products are cheaper than those whose prices are at the same level as yours and those whose prices are much higher.
4. Analysis of differences and selection of important segmentation criteria. It is necessary to study all the received groups and identify in what ways they differ. The most important of these are the reason for the purchase, switching to another brand or abandoning the product. These behavioral and psychographic traits tend to be the most significant, with demographics and geography more likely to be descriptive characteristics that enable planning.
5. Dividing potential buyers into segments and a detailed description of each of them. Each segment should be described by social, demographic and geographic characteristics, behavioral (places and frequency of purchases, important product features, number of brands purchased, etc.) and psychographic factors ( life values, priorities, motivation when buying, etc.).
6. Assessment of the potential of each segment (approximate number and volume of purchases made by different consumer groups).
7. Choice of target market segments. One or two target groups with the greatest potential are selected, and it is taking into account their characteristics that a further promotion strategy is formed in a particular store.

Sample product matrix in competitive analysis

Comparison of own assortment with the list of goods from a competitor is carried out to identify strengths and weaknesses competitors and your company. This type of research begins with the identification of the main competitors (3-4 large companies) offering similar or substitute products. Next, an analysis is made of the product range of various competitive companies, their list of services, advantages.

To compare the product policy of the main competitors, a product matrix is ​​compiled for each individual company, indicating the product range groups, grouped by manufacturers, models, quality, prices and other characteristics.

The data obtained is used for optimization in the formation of their own assortment. For example, during the process of competitive analysis, it was found that most of them offer very wide choose product groups, but all of them are represented only by the most popular positions. In this case, you can choose the tactics of maximum depth within the product group (increasing the choice of models, volume, color and other characteristics of a particular product).

Selection of the main product groups of the product grid

An assortment or commodity matrix is ​​a complete list of goods presented at a point of sale. Commodity content must be formed even before the opening of the store, taking into account its format, location, features and preferences of the target audience. Spontaneous formation of the assortment, focused on current demand or copied from competitors, without cost analysis and each product group, can lead to losses and ruin.

In addition to the preliminary compilation of a commodity matrix before opening a retail outlet, it is also necessary to update such a list at least once every six months. Ideally, this task should be carried out by a group of specialists: a category manager or purveyor who knows suppliers and has information about what is being sold and how much, as well as a marketer and commercial director.

Features and stages of compiling an assortment matrix:

The product matrix is ​​adjusted based on the analysis of sales for the previous period (the number of goods sold, total profit, profitability by position). The outlet's product base is formed with all key parameters - the assigned internal code, name, brand, purchase and retail price, stock balance, etc.

The entire range can also be conditionally divided into price categories(usually, the division takes place on a cheap, medium and expensive segment).

Deepening the range of goods

In order to meet the needs of the target audience to the maximum, the marketer (commercial director or other) retail network or a separate store should lead permanent job to optimize product content.

By choosing a strategy to increase the number of products within one product group, you can achieve a competitive advantage by offering those products that competitors cannot offer. This is called assortment deepening (differentiation).

This policy allows you to offer target consumers product variations that best suit their needs. An in-depth assortment is relevant for the sale of adult and children's clothing and footwear (various colors and sizes are offered), furniture, mobile phones and other consumer goods.

All assortment management activities of a chain of stores or a specific point of sale are aimed at several goals - increasing retail brand awareness and target audience loyalty, increasing sales and business profitability. Long-term goals are also to improve competitiveness and increase market share. To achieve the set goals, it is necessary to choose the right store format, form a sales concept, and compile a product matrix taking into account demand and the competitive environment.

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“Hello reader. Today we will talk about the range. And more precisely about how it should be. In any company, the assortment should be divided into appropriate categories and product groups. This is convenient for both customers and employees working with the assortment. The assortment matrix of any trading company should be based on the assortment matrix - its compilation will be discussed in this article.

The article turned out to be not at all small, but in a nutshell this component of the work of a marketer cannot be described. So have some patience.

What is an assortment matrix and what is it eaten with?

Assortment matrix - in fact, this is a kind of nomenclature list of absolutely all product names sold in a particular store or chain of retail stores (if the assortment matrix is ​​​​formed for the entire network), compiled taking into account the characteristics of this store (chain), as well as the assortment policy of the organization in in general.

Summarizing, the compilation of an assortment matrix is ​​an integral part of the assortment policy of a trading company, regardless of its organizational structure.

In general, the compilation of an assortment matrix in retail store cannot be an end in itself, but should be the result of the formation of an assortment for a specifically designated point of sale. However, in any case, the assortment matrix is ​​created only after a clearly defined trade policy and company strategy. Ideally, the category manager (supply department manager, buyer) should be responsible for the creation and implementation of the assortment matrix, since only he knows where and what goods can be purchased.

Naturally, the assortment matrix is ​​by no means created by the forces of one categorizer. In this process, it is desirable that the department of marketing, pricing and management, represented by commercial director. However, their role is more to provide information on a particular product or product group, but the decision should be for the category manager.

Stages of compiling an assortment matrix

Stage number 1. Before compiling a product nomenclature, you need to clearly understand the format, dimensions and features of the store for which it will be intended. On the this stage almost all factors of the outlet are taken into account:

• number of storeys, area of ​​the store, its shape;
• its location (district, accessibility by buyers, presence of competitors, etc.);
• socio-economic features of the area where the store is located;
• estimated display of goods and commercial equipment.

Based on this data, the format is determined retail outlet(discounter, self-service store or off-the-shelf trade, its specialization, etc.). An understanding of the preferences of buyers in terms of the breadth of the line is also being formed. Positioning is being done. In other words, the compilation of the assortment matrix and, as a result, the purchase of goods, begins after having a clear strategy and positioning in the minds of buyers. However, this is ideal. In fact, it often happens that initially there is a purchase of goods for sale, and a disorderly one (if only the shelves were full), and then methods of selling it to their customers are developed. Which is fundamentally wrong in today's competitive environment.

Stage number 2. We segment buyers based on a study of current demand. This stage allows us to understand who our client is, what habits, requests and needs he has.

Methods of influencing target audience, advertising and marketing concept. At the same time, on what basis these segments are created, it does not really matter. The main goal here is to understand who our client is and what their expectations are. The result of this stage of compiling the assortment matrix should be the selection of a key segment of buyers, to which the main efforts will be directed. There are several ways to obtain this information. As one of the options - a survey of potential buyers.

Stage number 3. We compare our own assortment with the assortment of competitors. At this stage of compiling the assortment matrix, it is necessary to understand who our competitors are and what position our retail outlet will take relative to them.

A large number of competitors, in principle, is not required, 3 - 5 will be enough. Having chosen the main competitors, you need to understand what advantages and disadvantages distinguish each of the competitors. It also compares the price level for key product groups. Based on the data obtained, as well as the adopted own strategy, we determine what our competitive advantages will be, for example, the depth or breadth of the presented assortment.

Stage number 4. We determine the main groups of goods presented in the store. Having decided on the location of the outlet, the preferences of customers, the depth and breadth of the competitors' assortment line, a vision of their own assortment is formed.

Based on the general concept of the store, the price level for the main groups of goods is fixed. Will our company be priced above or below the market, or something in between. Having understood the price level, we begin to look for suppliers for the groups of goods being sold.

Stage number 5. We break the range into categories. Perhaps this is the most interesting part of this task, at least for a marketer. Based on the preferences of the buyer, as well as their own knowledge of the psychology of the buyer, the marketer begins to break down key categories into subcategories, and then into individual positions.

Why the most interesting? Yes, for one reason, scattering the assortment into categories and subcategories, one must proceed from the consideration of the buyer. Those. practically start thinking like a customer who comes to our store thinks. Why did he come? Behind the TV, so that it was huge, or behind the Samsung TV with a diagonal of 110 ', the color is gray. Or maybe he just needs a TV in general, and in order to meet 5,000 rubles. And so that the client does not leave without a purchase, the assortment of the store should be filled based on the key factors of the target buyer.

Stage number 6. Understanding the balance of the company's assortment. At this stage of compiling the assortment matrix, we analyze the balance of commodity items and categories. It is necessary to balance the assortment both in depth and in width, based on the key roles inherent in the product group. There are not so many roles for product categories. I will try to list the main ones:

• unique goods - work on the company's image, and are more related to goods of impulse demand, i.e. those that grab, without hesitation, on the way to the checkout;
• priority products – allow you to maximize profits and attract the main flow of customers. For such goods, the buyer can specially come to our store and, having not found the right product, leave without buying anything;
• basic goods are also able to provide a flow of customers and have a high turnover. The buyer also comes for these goods on purpose, knowing that he will definitely find what he needs;
• seasonal goods - aimed at the rotation of the assortment and attracting new customers;
• convenient product categories - form a loyal attitude of buyers.

Stage number 7. Final compilation of the assortment matrix, formation of the final document. This The final stage, where all information about the product is entered into a single database.

Additional properties are determined (color, brand, key parameters, packaging, etc.). In general, any data that can contribute to the convenience of the buyer's choice and analysis is recorded in one single array. The assortment minimum (i.e. the basis of the assortment of any store) is calculated for a specific retail outlet. It is worth noting that there should not be a deficit at this minimum in principle. That's why it is a minimum, only lower - a coffin.

Ultimately, in order for the assortment matrix to be understandable, realistically applicable in practice and convenient to use, three key rules must be observed:

1. customer focus;
2. shop specifics;
3. optimization and nuances of assortment deliveries to the store.

Algorithm for creating an assortment matrix.

As mentioned earlier, the ideal assortment matrix is ​​created for a specific store, and the store is not yet open. However, things often turn out quite differently. The store has been functioning for a long time, a certain circle of buyers has been formed and a decision is made whether we should change the assortment, well, it started. Below is an algorithm for creating an assortment matrix, so to speak from life, as I happened to do. In fact, it was necessary not to start everything from scratch, but to redo what had already been done once.

The first thing you need is a small product group containing items that are similar in their application, in this example, this is the “roulette” group. A base is being formed on the main key parameters(product code, name, profit and quantity of goods sold for the year, current balance, retail price, brand, productivity).

The second thing we do is to break down the available assortment into price segments. Of course, the number of price segments can be anything, but I divided it into three equal pieces (cheap, medium, expensive). Blocks are also defined by key additional properties.

Third. We form a certain matrix of assortment representation in a particular price segment. As a result, we get a certain table containing key data for the analyzed group. In this table, we fix the number of positions, sales data.

Fourth. We analyze the received data. As a result, an understanding should come about which combination of “price segment” / “product property” is saturated or, on the contrary, is not filled in the context of the current assortment.

Fifth. We compile a similar table for selected competitors. I personally selected three competing companies and fixed the number of presented assortment in their price lists by key parameters. In other words, we create a similar matrix in terms of the number of positions for our competitors.

Sixth. In accordance with the adopted strategy of the company, we conclude that the assortment will be reduced or expanded. Also at this stage, a decision is made to fill in the empty intersections of the segments.

This is where my mission ended, all the data was agreed with the category manager and transferred to the internal database management department to make changes to the program and fix positions. If the manager wants to expand the assortment in any of the fixed segments, the program will not allow it.

On this, perhaps, I will end. I think that now, reader, you have a certain understanding of what the assortment matrix is ​​and what key points must be taken into account when drafting.

Kind, Ladies and Gentlemen! The topic of our lesson is "ASSORTMENT MATRIX" .

"Assortment matrix - what is it?"

Let's start by answering this question:

ASSORTMENT MATRIX — this is the optimal set of commodity items in your nomenclature catalog that you are currently trading in the context of commodity levels, categories and characteristics.

An effective assortment matrix is ​​a MUST :

• Maximize sales, profit, batteries, market share- depending on what goals your business faces;
• Fully meet customer expectations, and for product groups with the “Develop” strategy, it exceeds these desires;
• Maintain optimal the production cycle and stock within the specified standards, minimizing illiquid, excess and zeroed balances of goods.

So the funniest thing is that the Assortment Matrix in the form of standard excel plates, which numerous textbooks woo us, prof. sites and miracle consultants, this is complete bullshit and profanity.
And why? Yes, because the Assortment Matrix is ​​not Egyptian pyramid, which stands for four thousand years in one place.

Once and for all imbued with the next. The assortment matrix is ​​not a constant sign, it is an infinity symbol. This is a super dynamic thing that can change every day.
And make it up in Excel, sign it with the boss, and then collect the signatures “Familiarized” from buyers and salespeople, a rare stupidity and a stupid waste of time.

But we immediately have a second question.

And how to manage and control this very matrix, if it changes every day? And what is it supposed to look like?

My friends, in order for the assortment matrix to be formed quickly and automatically, buyers and salespeople must constantly answer three key questions:
Why are we selling this product?
What product do we NOT need?
What product do we need?

"How do you make your sculptures?" Michelangelo was asked.
“I take a stone and cut off everything superfluous” he replied.

“How to make your Assortment Matrix?” - you ask.
“Take a list of your products and cut off everything superfluous ... and then add there what your customers lack”, I will answer.

However, no. I won't just answer. I will give you my personal instrument along with instructions.

GROUP DESCRIPTION OF GOODS

I will start the demo with my favorite construction and distribution example, although from time to time I will throw up options from other product groups in order to convince you of the applicability of my method for any commodity business.

And the first thing we need is to break our assortment into enlarged groups and subgroups. These are links to tutorials where I showed you how to do it:

I will not repeat. The main thing is that at the end you can build such a report with sales for each group and subgroup.

Grouping products for assortment matrix

Read, understand. And we get to the point. So.

Step 1. For groups with a strategy KILL We have a very simple plan of action. We take it out of stock , sell the rest of the goods and forget about it until the next strategic session.

Step 2 In the second step we describe the products from each group by subgroups in the hierarchy and logically we check each of the subgroups for compliance with the market , in order not to engage in commercial schizophrenia, offering beach umbrellas on the shores of the Arctic Ocean.

If a subgroup for some reason does not match the market, it follows the group with the Kill strategy. We are withdrawing it from the assortment, and giving the rest of the subgroups a green light.

Step 3 On the third step we distribute goods by categories, build category maps and compare them with market category cards. And this is where our paths diverge. For a group with a strategy to Develop and a strategy to Hold is black and white, the yin and yang of our range.

The fact is that product groups with a strategy DEVELOP should be small, because inside them you are obliged to form the widest and deepest assortment. It is very important. Starting to develop a product group, we actually declare to our customers that we are not sickly specialists in it. And if you position yourself as a product group specialist, be kind, do everything according to Feng Shui. Satisfy in it all the possible needs of your customers to the maximum!

Therefore, the principles of forming the Assortment Matrix for Development groups will be fundamentally different from the principles for groups with the Hold strategy.

If you are working with a Growth Group and you see an assortment hole on its category map, then be kind, find a supplier, puzzle the technologist and enter the missing product in the price list, because it must be there.

In groups with a strategy KEEP everything is upside down. For these categories, we must conduct a very strict selection and include only TOP categories in our price list.

TOP PRODUCT CATEGORIES

TOP CATEGORIES — these are the categories that, according to the results of the ABC analysis, were assigned group A for two indicators "Sales in rubles" and "Number of stamped documents".

In this case, ABC analysis should be done within each specific group. Below is an example of an ABC analysis for the Power Supply Group, in which the TOP categories of this group are highlighted.

If we hold a group, then we are obliged to work only with the TOP categories from this group, with its assortment of fat and nothing more.

In my example, I DO NOT claim to be a specialist in this group, which means that my client will forgive the absence of camping lights or searchlights in my price list, but if there are no 100 watt bulbs or batteries, he will definitely strain.

Naturally, our main question is:
“How to find out which categories are TOP?”

To be honest, there are few methods and they are all on the verge of a foul.

Well, if that doesn't work, then do it.

1. Collect as much information as possible about the products of this group, build a hierarchy of all its subgroups, make a market map of categories.
2. And then turn on your head, brainstorm with your fighters and select the top categories for your taste and color.
3. Enter them into the assortment, and then, using the "Assortment Management" module of the TopControl system, automatically rotate them until you find the most sold ones.

Here are a few words about how ROBOTS will save us when managing the assortment matrix.

The fact is that every night our robot merchandiser independently analyzes commercial indicators for each category in the context of each product and assigns them statuses - Archive, No sales, Losers, On order, Working, Matrix .

And if you want to have an effective assortment matrix, then once a week or once a month, it depends on the turnover of your goods, generate such a report on the Status of the goods. And apply three standard solutions to them.

With goods Matrix, Working, On order We continue Work .

It’s a little more difficult with goods that a robot merchandiser has assigned a status to - No Sales or Losers .

If the USP of the product Minimum price or wow product , We continue Work with him, if the product has a USP Functionality or Feature we We change it to analog.

If the USP of the product is Brand, image, fashion or For assortment boldly We kill and as quickly as possible we clear the warehouse of its residues.

It is clear that if your assortment is 10 positions in which you understand better than Kasparov in chess, or you stupidly don’t care about your business, because last week oil was found in your yard, forget about everything that I just told you and do not fool around with assortment matrices.

But if you have a decent price list, do not have your own well and have a burning desire and ambition to have more than a Hyundai Solaris at the entrance and french fries from McDonald's, ...

Learn to Manage Goods Effectively.

Because the first Pi of marketing is not sales, promotion and everything else. The first Pi of marketing is PRODUCT! Thank you for your attention, good luck and big sales.

To be continued…VideoPost version

There is no consensus in the literature on the definition of the concept of "assortment matrix". Taking into account the accumulated ideas and experience, I propose the following definition of the concept of the assortment matrix (AM) - this is a document that is a tabular form in which, according to the hierarchical principle (from category to accounting unit inventory) reflects the assortment of the company and contains information with certain characteristics of the assortment in a specific period of time.

The creation of an assortment matrix in the traditional scheme of work is carried out by employees of the departments of purchase, sales, marketing, but if the enterprise has a system of category management, then category managers are involved in this.

In practice, there are various approaches to the creation of such matrices, but no deep theoretical studies on this issue have been found in the literature. Each company develops its own algorithms, which subsequently make up its competitive advantage and trade secrets.

The procedure for forming an assortment matrix

There is no single standard for either composition or structure for any of the matrices. The composition and structure of each depends on many factors, primarily on the tasks solved with its help, the format of the sales department and the product range management system.

The author does not pretend to completeness of the structure of the assortment matrix (Table 1) and the algorithm for its formation. Each can be modified in accordance with the requests of end users, as well as taking into account the main factors influencing the assortment formation process: demand, pricing policy, production of goods and the capabilities of existing suppliers, strategic goals and objectives of the company, level of competition, product life cycle, achievements NTP, material and technical base of the enterprise, regulatory and technological documents, etc.

Table 1. An abridged version of the assortment matrix of the sales division

Range

Article name

Internal classification code

Feature 1

Characteristic N

unit of measurement

Manufacturer / supplier

Country of Origin

Cost price

Selling price

Competitor price 1

Competitor price N

Availability in the sales department

Condition (see table 4)

Role (see Table 2)

Economic indicator 1 (eg: margin)

Economic indicator 1 (eg: turnover)

Segment 1.1.1

Subsegment 1.1.1.1

Article 1

Article I

Segment 1.1.2

The procedure for the formation of AM, in my opinion, is a sequential implementation of the following stages - see fig. 1. Each stage performs its specific functions, which will be discussed below.

Rice. 1. Stages of formation of the assortment matrix

Determination of the concept and format of the sales division

This document is primary in the implementation of a number of tasks. In our case, on the basis of this document, it is necessary to determine those product categories that can potentially be included in AM, as well as the number of articles (names of products). For example, the AM of a precious metals trading division and a food trading division will unequivocally contain different product categories and have a different number of articles. In the same way, the AMs of trade divisions of the hypermarket format and the convenience store format will be different (primarily in terms of the number of articles), even if the trade divisions operate in the same area.

Definition of the target customer/target segment

This marketing research should make it clear to whom the assortment should be oriented, who is the potential buyer, to make clear the algorithm for making a decision by the consumer when choosing a product. Based on this information, it is determined whether the assortment will be domestic or foreign, whether only the latest models of goods should be in the assortment, goods with which combination of price / quality indicators should dominate in AM, which auxiliary assortment of goods must be present, etc.

Definition of price ranges

As a rule, the assortment can be divided into three price corridors: economy, mass market, premium. The difference between the intervals of price corridors should be significant. Again, there are no standards for such a division for any category. However, when dividing the assortment, it is necessary to take into account not only the cost of the product itself, but also the cost of commissioning, additional services, operation of the goods.

The result of this stage should be a document that will indicate in which price ranges the trading division operates, as well as the ratio of these ranges for each product category. For example, for a high-end boutique as a whole, this ratio may be 0/20/80 (economy/mass/premium), for a hypermarket positioning itself as a "permanent low prices”, this ratio can be 50/40/10.

Formation of the assortment classifier

The system of constructing a classifier for the assortment matrix proposed by the author is based on the division of the product range into product categories according to the functional-consumer principle (the concept of category management), although, depending on the goals of management, classifications corresponding to other approaches to managing the product range can be applied.

V general case the structure of each category is formed in accordance with the range of properties and indicators that are essential for this category of goods, both from the point of view of the seller and the buyer. The category structure is a map of the consumer's decision to purchase a product.

The most common criteria for the formation of the structure are "ease of management" (routing of the process, product properties, product layout, suppliers, terms of sale) and "consistency for the consumer".

Determining the breadth and depth of the assortment by product categories

Range breadth is the total number of similar and dissimilar products offered by a sales unit in a given period of time. The depth of the assortment is the number of types of goods, taking into account all the features within a homogeneous or heterogeneous group.

A lot of research has been devoted to the issues of determining the width and depth of the assortment, and therefore there should not be any difficulties with the selection of an algorithm. The main thing is that there are no contradictions with the above aspects and there is a close connection with the next paragraph.

Determining the number of brands/suppliers represented

The principle of brand selection.

• Brands should be bred along price corridors.
• The presence of analogue brands should be minimized.
• The supplier brand must cover the product line as completely as possible in its price corridor. The supplier can close the line with several brands.

The ideal option is one brand in each of the selected price corridors. When choosing a brand, you should consider its history in the local market.

• Existing brands on the market: pluses - fame; high awareness of the client about the brand; cons - high competition.
• New brands: pluses - exclusivity; high profitability with proper positioning; cons - the need for promotion costs.

Determining the role of product categories/articles

Role - a certain state of the goods relative to other positions in the assortment, characterized by the level and nature of demand for it, price, fame, functions assigned to it by the seller. Assigning different roles to products is nothing more than creating a tool for forming (at the operational level) a policy for promoting the assortment and pricing in accordance with customer expectations. Products with different roles require special marketing approaches, methods and programs.

Definition of articles that will be included in AM

Perhaps the longest stage, because. it is necessary, on the basis of the principles established at the previous stages, to form an assortment consisting in some cases of tens of thousands of articles. In the category management system, as already noted, this is done by category managers. Each manager eventually makes up the AM of his category, which together make up the AM of the sales department (of the entire company).

As a result of this step, a matrix is ​​obtained with filled values ​​at the intersection of rows and columns. Table 1 does not list all the main columns (indicators) that should be present in the AM. The purpose of this table is to visually demonstrate the approximate structure of AM.

Assigning required values ​​to articles

This stage involves filling, as far as possible, the AM columns left empty after the previous step. Special attention I urge you to pay attention to the "state" column.

The state of the goods is selected from the directory of states (life cycle) of the goods. The directory of states, as well as its necessity, the company determines for itself.

Analysis and evaluation of the assortment

By this time, it is assumed that the generated AM and statistics for a certain period will be available, which will allow assessing the effectiveness of the assortment in terms of its compliance with the principles of assortment formation (consistency, rationality, uniqueness, manufacturability, price principle, renewal, stability of the assortment, completeness), will allow to analyze economic indicators etc.

It is recommended to update every six months (for example, the beginning of the season, the end of the season, etc.). The update consists in the withdrawal from AM of a certain number of articles that do not comply with the standards and principles established in the sales department, and the subsequent introduction of a number of articles. Working with matrix data is working with large data arrays (especially if it is a multi-assortment enterprise), and therefore requires the availability of an appropriate software and trained professionals.

 

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