[ Assortment Optimization ]
A high-accuracy approach to prioritizing
large numbers of product options
Choosing a winning category line-up or shelf set from a large number of products can push traditional discrete choice techniques to their limit; and turning to less-precise TURF analysis simply isn't an option when high-stakes decisions need to be made.
The KN Advanced Analytics team has developed an innovative assortment optimization technique that can comfortably accommodate up to 250 items while maintaining a high degree of accuracy and granularity. The result is exceptional power and precision – particularly useful in identifying the best category lineups by retailer, channel, geography and consumer segment.
The KN assortment optimization approach combines innovative respondent exercises with volumetric analysis and proven optimization techniques. Through a series of unique survey exercises, we narrow each respondent's decision set. Our method
- treats different buyer groups (e.g., heavy buyers) differently
- allows inclusion of products not yet in market
- measures unit volume and dollar volume impact
- assesses the risk of lost shoppers and the impact of potential lost trips and shoppers.
Easy-to-use simulator tool
To help clients get maximum value out of their data, KN's Simulator Tool calculates the impact of assortment changes, with instant analysis of subgroup or segment results; it also helps assess volume gains or losses under different scenarios, such as
- setting awareness/distribution levels by product
- identifying top must-have products
- assessing "what if" options versus the current assortment
- quantifying incremental contribution of new products
- viewing results by brand and product characteristics
- determining the right assortment for both large and small store formats
