Formation of product range. Concept of assortment Wide assortment for all types of work

An assortment of goods is a set of their types, varieties and varieties, united or combined according to a certain characteristic. The main grouping characteristics of goods are raw materials, production and consumer goods. There are industrial and commercial assortments of goods.

The production range is the range of goods produced by industrial and agricultural enterprises, as well as other manufacturers. As a rule, enterprises producing goods produce a narrow range of goods, which allows them to introduce advanced production technology, improve the range of goods produced, and improve their quality. Therefore, the goods they produce require further sorting, taking into account the requirements of trade, whose enterprises concentrate a wide range of goods, which is a combination of products produced by a wide variety of manufacturers. Such sub-sorting, or transformation of the assortment, is carried out mainly at wholesale trade enterprises, through which the bulk of goods of a complex assortment pass. Some food and non-food products are sorted directly in stores and other retail establishments.

The trade assortment is a range of goods to be sold in a retail chain. It includes a range of goods produced by many enterprises and is divided into two product sectors: food and non-food products. Each industry is divided into product groups, which include goods that are combined according to a number of characteristics (uniformity of raw materials, consumer purpose, degree of complexity of the assortment).

The nomenclature, or product range, is the entire set of products produced by the enterprise. It includes various types of goods. The type of product is divided into assortment groups (types) in accordance with functional features, quality, and price. Each group consists of assortment items (varieties or brands), which form the lowest level of classification.

A wide range allows you to diversify products; cater to different consumer requirements and encourage one-stop shopping. At the same time, it requires the investment of resources and knowledge in various product categories. A deep assortment can satisfy the needs of different customer segments for one product; maximize the use of space in retail outlets; prevent the emergence of competitors; offer a range of prices and encourage dealer support. However, it also increases the costs of holding inventory, modifying products, and fulfilling orders. In addition, certain difficulties may arise in differentiating between two similar product lines. Typically, comparable assortments are easier to manage than disparate assortments. It allows an enterprise to specialize in marketing and production, create a strong image and ensure stable relationships in distribution channels. However, excessive concentration can make an enterprise vulnerable to threats from the external environment, fluctuations in sales, and slowing growth potential due to the fact that the entire emphasis is on a limited range of products.

Nomenclature literally means a list of names. Thus, the product range is a list of names of products manufactured by the enterprise. As for the product range, this is a list of groups of goods offered by a specific seller. The seller can offer customers products from one or many manufacturers, using the product range of each of them in full or in part. Nomenclature as an economic category has a consolidated character. We can talk, for example, about men's, women's or children's shoes, bedroom or dining sets, televisions or tape recorders, caramel or chocolate. Essentially, these are assortment groups, and the product range is a list of assortment groups of products or goods.

Assortment features of product groups are being formed, within which objects have a certain similarity. And you can also distinguish between the range of products (soap is produced by the enterprise) and the range of goods (what is offered to consumers by this seller).

1. Assortment groups by location of goods:
- For industrial enterprises it is established production range products, in relation to trading enterprises - a commercial assortment of goods. The first of them reflects the specialization of the enterprise and serves as the basis for concluding supply contracts. In the second case, there are grounds to judge the extent of the ability of a trading enterprise to satisfy the needs of the population and distinguish between specialized and universal trading enterprises.
- Trade assortment- a list of goods formed by the organization taking into account demand, material and technical base and the specialization of the store.
2. Assortment groups by breadth of product coverage:
- Group assortment products shows a list of enlarged product groups that make up the product range. So, a grocery store can sell gastronomic and grocery products, and a sporting goods store can sell summer and winter sports equipment.
- Species assortment goods reflects the presence of a number of types in a group of goods. For example, dairy products may contain kefir, cream, cottage cheese, etc. Men's footwear includes such concepts as boots, boots, shoes, sandals.
- Intraspecific assortment goods represents varieties of products, dividing the type into parts. Thus, cottage cheese can be of different degrees of fat content, samovars can be of different capacities, shoes can be of different styles, fabrics can be of different colors, etc. The intraspecific assortment of goods may have different depths of development and detail. In this sense, we can talk about the degree of complexity of the assortment. For example, medications used for a specific human disease can be presented for external or internal use, in the form of tablets or liquids, have different packaging, packaging, etc.
- Simple- a set of goods represented by a small number of groups of types and names that satisfy a limited number of consumers.
- Difficult- the set of goods is represented by a significant number of groups, types of varieties of items that satisfy various needs.
- Expanded- a set of goods that includes a significant number of groups, subgroups, varieties of names, but differing in individual characteristics.
- Related- a set of goods that performs auxiliary functions and does not belong to the main ones.
- Mixed- a set of goods from different groups, characterized by a wide variety of functional purposes.
3. Types of assortments according to the degree of consumer satisfaction:
- Rational assortment- a set of goods that most fully satisfies realistically justified needs that provide maximum quality of life at this stage.
- Optimal- a set of goods that satisfies real needs with the maximum beneficial effect for consumers at minimal cost.
4. varieties of assortment according to the nature of needs:
- Real- a valid set of goods located in the seller’s store.
- Projected- a set of goods that can satisfy expected needs.
- Training- a set of goods for studying and achieving educational goals.

In stores, a relatively narrow product range is transformed into a wide trade range, which includes goods from various specialized production enterprises. The production of products in a market economy, from a marketing point of view, should be aimed at satisfying the diverse needs of the population, taking into account local, national and climatic conditions, therefore, primary attention in stores should be paid to the formation of a product range, as a process of establishing such a range of goods that develops over time , which would satisfy the product structure of the population's demand.

Composition of homogeneous products by type, grade and brand

List of types and varieties of products and goods, distinguished by individual indicators

1. Types of assortment

2. Product range

3. Formation of assortment

4. Assortment planning

5. Assortment structure

6. Product range

Deciding on the breadth of product range

The decision to increase the product range

The decision to saturate the product range

Product nomenclature decisions

Range - This composition of homogeneous products by type, grade and brand.

Range- This a list of types and varieties of products and goods, distinguished by individual indicators (characteristics).

Range - This composition and ratio of various types of products, goods, services in manufacturing and trading enterprises; a list of types and varieties of products and goods, distinguished by individual indicators (characteristics).

Types aassortmentA

A distinction is made between a range of services, a range of products and a trade range:

range of services - a set of services offered to consumers. Based on the level of detail, the range of services is divided into three main types: group, specific and intraspecific.

product range - composition, ratio of individual types of products in the products of an enterprise, industry, group of goods, taking into account their quality and grade.

In marketing, the characteristics of an assortment are: width, depth, stability and height of the assortment.

assortment of goods - a group of goods related to each other either due to the similarity of their scope of operation (application), or within the same price range.

Assortment of goods - according to GOST R 51303-99 - a set of goods combined according to any one or a set of characteristics.

It is customary to distinguish between group and expanded assortment (nomenclature). A group assortment is a list of various types of products for industrial and technical purposes and consumer goods; by expanded A. we mean the composition of products and goods of the same type, distinguished by individual characteristics - brands, profiles, article numbers, models, styles, heights, sizes, colors, designs, packaging, recipes, packaging, etc.

In modern conditions of a market economy in Russia, the range of various goods has increased many times, a significant part of which is represented by products of insufficiently high quality and does not meet modern world requirements.

Errors in choosing a product, ignorance of its properties, characteristics, storage conditions, transportation, and incorrect assessment of its quality can result in major losses and damages for the entrepreneur. Therefore, future entrepreneurs need basic understanding of commodity science of various groups of goods.

Market success is now the main criterion for assessing the activities of domestic enterprises, and their market opportunities are determined by a properly developed and consistently implemented product policy. It is on the basis of studying the market and the prospects for its development that the enterprise receives initial information to resolve issues related to the formation of the assortment, its management and improvement.

A strategic approach is required to solve the problems of commodity policy at any economic level. This means that any decision in this area must be made not only from the point of view of current interests, but also taking into account how it “works” for the ultimate goals. This approach requires concentrating efforts on the main areas.

Product range

The set of goods offered by a manufacturer on the market is called an assortment.

However, it also increases the costs of holding inventory, modifying products, and fulfilling orders. In addition, certain difficulties may arise in differentiating between two similar product lines. Typically, comparable assortments are easier to manage than disparate assortments. It allows an enterprise to specialize in marketing and production, create a strong image and ensure stable relationships in distribution channels. However, excessive concentration can make the enterprise vulnerable to threats from the external environment, fluctuations in sales, and slowing growth potential due to the fact that the entire emphasis is on a limited range of products.

Product range literally means a selection of items, a set of their names according to some characteristics. From this point of view, the range can be simple or complex, narrow or wide. This classification provides for the identification of groups of homogeneous products or goods based on type, variety, brand, etc. Assortment groups are formed within which items have a certain similarity. And you can also distinguish between the range of products (the UFO is produced by the enterprise) and the range of goods (what is offered to consumers by this seller).

The group assortment of goods shows a list of enlarged product groups that make up the product range. So, a grocery store can sell gastronomic and grocery products, and a sporting goods store can sell summer and winter sports equipment.

The product assortment reflects the presence of a number of types in a product group. For example, dairy products may contain kefir, cream, cottage cheese, etc. Men's footwear includes such concepts as boots, boots, shoes, sandals.

The intraspecific assortment of goods represents varieties of products, dividing the species into parts. Thus, cottage cheese can be of different degrees of fat content, samovars can be of different capacities, shoes can be of different styles, fabrics can be of different colors, etc. The intraspecific assortment of goods may have different depths of development and detail. In this sense, we can talk about the degree of complexity of the assortment. For example, medications used for a specific human disease can be presented for external or internal use, in the form of tablets or liquids, have different packaging, packaging, etc.

In relation to industrial enterprises, a production range of products is established, and in relation to trading enterprises - a trade range of goods. The first of them reflects the specialization of the enterprise and serves as the basis for concluding supply contracts. In the second case, there are grounds to judge the extent of the ability of a trading enterprise to satisfy the needs of the population and distinguish between specialized and universal trading enterprises.

With good reason, the stated provisions on the nomenclature and range of products can be attributed to the performance of work and the provision of services, in relation to which groups, types, and subtypes of products are also distinguished.

Planning the nomenclature and range of products can and should be based on the entrepreneur’s knowledge of the needs of the market and its state. Such knowledge is achieved as a result of activities called marketing. There are many definitions used in marketing at different times and by different authors. Taken together, all of them, despite the variety of formulations, come down to one judgment - market research, demand analysis, sales forecast, ensuring the most complete satisfaction of social needs. Satisfaction, in turn, is achieved by the development and production of new products that meet current demand, the establishment of product sales communications, and the creation of service services that accompany the process of using the product.

The product range includes certain types of goods.

The type of product is divided into product groups in accordance with functional features, quality and price. For example, book publications can be divided into the following assortment groups: scientific literature, popular science, industrial and instructional, educational, program and methodological, fiction, children's, official documentary, reference, socio-political literature.

Each assortment group consists of assortment items, which are the simplest unit of structure. For example, educational literature is divided into textbooks and teaching aids.

A product range is characterized by breadth (the number of product groups), depth (the number of items in each product group) and comparability (the relationship between the product groups offered in terms of consumer community, end use, distribution channels and prices).

Formation of assortment

Formation of an assortment is the problem of selecting specific goods, their individual series, determining the relationships between “old” and “new” goods, single and mass-produced goods, “high-tech” and “ordinary” goods, embodied goods, licenses and “know-how”. When forming an assortment, problems arise in establishing a pricing policy, requirements for product quality, determining guarantees and the level of service, etc. It is also important to determine whether the manufacturer is going to play the role of a leader in creating fundamentally new types of products or is forced to follow other manufacturers.

The formation of the assortment is preceded by the development of an assortment concept by the enterprise. It represents the targeted construction of an optimal assortment structure, product offering, while, on the one hand, the consumer requirements of certain groups (market segments) are taken as a basis, and on the other hand, the need to ensure the most efficient use of raw materials, technological, financial and other resources by the enterprise in order to produce products at low costs.

Assortment planning

Assortment policy - determining the set of product groups that is most preferable for successful work in the market and ensuring the economic efficiency of the enterprise as a whole.

The objectives of assortment policy may be different. This:

satisfying consumer needs is one of the basic principles of marketing, which corresponds to the task of deep segmentation and differentiation of the market and ensures a close connection with consumers;

optimal use of technological knowledge and experience of the enterprise;

optimization of the financial results of the enterprise - the formation of the assortment is based on the expected profitability and profit margin, which is more common in the practice of enterprises, but can be justified in case of a difficult financial situation, lack of alternatives, etc.;

winning new customers by expanding the scope of the existing production program. This approach is quite conservative, since it is designed for short-term results and involves extending the life cycle of obsolete publications by finding new markets;

compliance with the principles of flexibility by diversifying the areas of activity of the enterprise in the printing industry and including non-traditional industries;

compliance with the principle of synergy, which involves expanding the areas of production and services of the enterprise, interconnected by a certain technology, uniform personnel qualifications and other logical dependencies.

A wide range of products strengthens the company’s market position and expands sales volume.

The assortment policy determines the optimal ratio of a set of publications that are different in life cycle stages, but are simultaneously on the market. Optimization of the range of publications that are simultaneously on the market, but differ in the degree of novelty, allows enterprises in the printing industry to be guaranteed relatively stable general conditions for ensuring sales volumes, covering costs and achieving profits.

The assortment strategy can also be built in the following areas:

product differentiation is associated with an enterprise distinguishing its publications as special ones, different from those of competitors, and ensuring separate “niches” of demand for them;

narrow product specialization is determined by the enterprise’s work in a rather narrow market segment and is associated with limited sales of products for a number of reasons. Sometimes narrow specialization as a product policy option is perceived as a forced measure, since the enterprise does not have sufficient resources to carry out successful work on a wide range of product ranges or due to the specifics of the product itself, as well as the peculiarities of the technological process. The reason may also be the deep segmentation of the market for this publication. In some cases, a policy of narrow product specialization is optimal for the efficient operation of a small enterprise or when an enterprise periodically changes its narrow specialization, using it to develop new markets or adapting to the changing nature of demand;

product diversification implies a significant expansion of the scope of the enterprise’s activities and the production of a large number of, as a rule, unrelated publications. This policy ensures significant sustainability and stability of the enterprise, as it serves as a guarantee against the risk of decreased demand and crisis phenomena in the production of one publication;

Commodity vertical integration pursues the goal of expanding the activities of an enterprise by mastering (or annexing) production or services along one technological chain. It makes it possible to save on production and distribution costs due to the use of cheaper raw materials and basic components of the main products, advanced technology and experience of integrated production, access to a new sales network and new markets, etc.

When determining the optimal assortment policy and product range, we proceed from two principles:

The principle of synergy means that the range of goods and services produced must be internally connected and individual goods and types of services must complement each other. This principle ensures broad economies of scale in the enterprise's activities through mutual support of various product groups or areas of economic activity. However, in the event of market fluctuations, such a system for constructing an assortment policy is highly vulnerable;

the principle of strategic flexibility is based on the conglomerate construction of strategic business zones and product ranges, which depend on various technologies, balance risky and stable product groups, etc., so that unexpected events in one area cannot have a serious impact on the development of another area and on the general results of the enterprise's overall activities.

The main factors determining the range of products of an enterprise and the need to expand and diversify its product range include:

R&D in the industry in question;

changes occurring in the product range of competing enterprises;

changes in demand for the products produced by the enterprise on the market, which requires the development of a product policy that would allow it to resist the narrowing of the market and skillfully take advantage of the expansion of market opportunities;

desire and preference of buyers to purchase a large number of products from one enterprise;

optimal sales of several types of products to the sales network at the same time;

development of trade according to special orders of individual consumers, providing for individual production of products of specified properties and characteristics;

the desire to avoid the presence of unused or unused capacity through the production of other, additional types of products;

the desire to use by-products to produce new types of products and increase the overall efficiency of the enterprise.

The product policy of an enterprise requires changes if there is excess production capacity for a long period; the main profit comes from two or three types of products; there is not a sufficient number of types of products corresponding to market opportunities and the volume of demand; The company's sales volume and profit are constantly declining.

Of great importance is the choice of the range of products that would allow the enterprise in the printing industry to increase sales revenue and, accordingly, profit.

The essence of product assortment planning is defined as planning all types of activities aimed at selecting products for future production and bringing the technical, functional and aesthetic properties of these products into the most complete compliance with the requirements of potential consumers.

The main elements (or phases) of product range planning are:

1) identifying current and potential (unsatisfied) customer needs; analysis of the ways of using the relevant products, as well as the characteristics of the behavior of buyers (consumers) in this market segment;

2) evaluation of competing analogue products from the same angle;

3) analysis of consumer assessments of the quality of manufactured products, i.e. determining the degree of their compliance with the needs of buyers (consumers) in terms of the ability to satisfy a specific need in functional and aesthetic terms;

4) determining which products should be added to the current product range and which products should be excluded from it for reasons of insufficient profitability, obsolescence, decreased competitiveness, etc. This also includes deciding whether production should be diversified into areas that go beyond the existing specialization;

5) consideration of proposals for the development of new products, improvement of developed products, as well as new methods and areas of application of manufactured goods;

6) developing specifications for new or improved products in accordance with customer requirements;

7) study, with the help of specialists in scientific and technical products and developments, the prospects for the production of new or improved products, including issues of prices, costs and profitability;

8) testing of products with the involvement of potential consumers to identify their compliance with consumer demand across the entire range of key indicators: quality, appearance, strength, ease of use, trouble-free operation; packaging, price, consumer value;

9) development of special recommendations for product manufacturers regarding its quality, size, name, price, packaging, maintenance, etc. in accordance with the results of testing, trial sales, etc.;

10) preparation of recommendations for the sales of products, including: determining the timing and schedule for introducing a new or improved product to the market, the scale and initial form of its implementation (for example, only test sales in specially selected cities, development of individual regional markets, or direct entry into the national market ), product sales plans, development of a program for advertising campaigns and other sales promotion activities.

It is important to keep in mind that product range planning is a continuous process that continues throughout the entire life cycle of a product, from the inception of an idea to its removal from sale.

Assortment planning technology has the following initial conditions:

The formation of the assortment is preceded by the development of an assortment concept by the enterprise. It represents the targeted construction of an optimal assortment structure and product offering, while taking as a basis the consumer requirements of certain groups and the need to ensure the most efficient use of raw materials, technological and other resources by the enterprise in order to produce products at low costs.

The assortment concept is expressed in the form of a system of indicators that characterize the optimal possible development of the production range of a given type of product. These include: a variety of types and varieties of goods, the frequency of updating the assortment, the level of price ratio for goods of a given type, etc. The goal of the assortment concept is to orient the enterprise towards the production of goods that correspond to the structure and variety of customer demand.

Target orientation and the art of planning are manifested in the embodiment of the real and potential capabilities of the enterprise into a certain combination of products that satisfy the buyer's needs and make a profit.

A typical assortment planning and implementation cycle includes a preliminary assessment of the concept, followed by the development of specifications based on customer requirements, the creation of samples, testing the feasibility of their mass production, and market testing.

Assortment structure

The product assortment of a retail enterprise differs in its structure from the assortment of a wholesale company, namely in that it can combine different groups of goods (food, electronics, furniture, household chemicals, watches, etc.), while wholesalers have to one degree or another, specialization.

By breadth, the assortment is divided into:

wide range (1-100 thousand items);

limited range (< 1000 наименований);

narrow assortment (< 200 наименований);

specialized assortment.

When making decisions on the assortment, it is necessary to take into account the degree of proximity between goods of different product groups, the capabilities of the enterprise (financial, personnel, warehouse, etc.), customer requirements, and the presence of competitors.

From a financial point of view, the formation of the assortment takes into account the turnover of goods, the size of turnover and the profit received.

The range is expanded for several reasons, including:

For some products in the main range, it is necessary to have complementary products (complementary products);

The activity of a wholesale company with this assortment is unprofitable (low turnover);

other marketing tasks are solved: new products are promoted, the enterprise switches to larger retail segments, etc.

Based on the classification of types of product range discussed above, as well as the characteristics of the product itself and the tasks set by the store owners, the following types of retail enterprises can be distinguished.

Specialty stores offering a narrow but rich assortment that can satisfy the specific needs of the buyer. The structure of the assortment can be aimed both at a wide offer of different options for one type of product (stores selling bicycles, tennis equipment, jeans, etc.), and at meeting the needs of a narrow segment of consumers (a store for newborns, a clothing store for tall people etc.).

Department stores offer a wide range of, primarily, non-food products. Located in prestigious locations in the city, department stores attract a large number of customers. In general, department stores are characterized by an average level of service with average and high prices for goods.

To increase turnover, department stores are developing food sales and also renting out part of their retail space to independent retailers.

Universal food stores (bantams, department stores, supermarkets, hypermarkets) differ in the breadth of their assortment and the area of their sales floor.

This Russian legislation does not define the rules for dividing stores into certain types, so a department store can have its own name (market, minimarket, supermarket, etc.).

Achieving correspondence between the structural and assortment supply of goods by an enterprise and the demand for them is associated with determining and forecasting the assortment structure. A forecast of the assortment structure for a long-term period, which would take into account such important features of the product for the consumer as aesthetic characteristics, exact dimensions, and a specific price, is unlikely. The point is not in detailing the assortment according to consumer properties (for example, in terms of colors, product sizes, price ratios), but, for example, in the optimal variety of assortment according to certain criteria (types of televisions, sets of kitchen utensils, appropriate price gradations, etc. .) with a view to specific groups (segments) of consumers.

Only the development trend of the assortment is predicted (and more precisely, the assortment structure of demand and product supply). Thus, it is possible to determine what variety of televisions will meet the requirements of different consumer groups, but it is unrealistic to predict the need for specific models (with a set of specific properties) for the future. These forecasts, taking into account the influence of the factor of interchangeability of goods, must be considered in conjunction. The forecast of the assortment development trend should show such a trajectory of process development that will ensure the achievement of the planned compliance of the enterprise's product offering with the changing assortment structure of demand in the market in the future.

So, the essence of the problem of forming an assortment is planning almost all types of activities aimed at selecting products for future production and sale on the market and bringing the characteristics of these products in line with consumer requirements. Formation based on planning of a product range is a continuous process that continues throughout the entire life cycle of a product, starting from the moment the idea of its creation is conceived and ending with its withdrawal from the product program.

Assortment management involves coordinating interrelated activities - scientific, technical and design, comprehensive market research, organizing sales, service, advertising, and stimulating demand. The difficulty in solving this problem lies in the difficulty of combining all these elements to achieve the final goal - optimizing the assortment taking into account the strategic market goals set by the enterprise. If this cannot be achieved, then it may turn out that the assortment will begin to include products developed more for the convenience of the production departments of the enterprise rather than for the consumer. From the point of view of the marketing concept, this is directly contrary to what needs to be actually done. The tasks of planning and assortment formation are primarily to prepare a “consumer” specification for the product, transfer it to the design department, and then ensure that the prototype is tested, modified if necessary, and brought to the level of consumer requirements.

In other words, in the formation of the assortment, the final say should belong to the heads of the enterprise’s marketing service, who must decide when it is more appropriate to invest in product modification, rather than incur additional increasing costs for advertising and selling an obsolete product or reducing its price. It is the head of the enterprise's marketing service who must decide whether the time has come to introduce new products to the range to replace existing ones or in addition to them.

The formation of an assortment, as practice shows, can be carried out using various methods, depending on the scale of sales, the specifics of the products being manufactured, the goals and objectives facing the manufacturer. At the same time, they are united by the fact that assortment management is usually subordinate to the head of the marketing service. In certain cases, it is advisable to create a permanent body chaired by the general director (his deputy), which would include the heads of leading services and departments of the enterprise as permanent members. Its main task is to make fundamental decisions regarding the assortment, including: withdrawal of unprofitable types of products, their individual models, standard sizes; determining the need for research and development to create new and modify existing products; approval of plans and programs for the development of new or improvement of existing products; allocation of financial resources for approved programs and plans.

The pressing question for the manufacturer is whether it is necessary to develop a standard product suitable for all selected markets, or to adapt it to the specific requirements and characteristics of each individual segment, creating for this a certain number of modifications of the basic product. Both cases have their pros and cons. So, although the creation of a standard product, uniform for all markets, is very tempting, it is practically impossible. At the same time, the differentiation policy does not justify itself economically where market conditions allow for partial or complete standardization (universalization) of the product.

The benefits of this kind of standardization of goods include: reduction in costs of production, distribution, sales and service; unification of marketing mix elements; acceleration of return on investment, etc. Incomplete use (in comparison with differentiation) of the potential market opportunities, insufficiently flexible marketing response to changing market conditions in this case hinder innovation.

Product modification makes it possible to more fully use the “absorbing” capabilities of markets, taking into account the specifics of their requirements in certain regions of the country and foreign countries, to fill those product niches where there is no competition or it is insignificant. However, determining such a direction in the assortment strategy is an expensive matter associated with the need to modernize and expand production capacities, diversify and rebuild the sales network and, of course, expand the marketing mix. Ultimately, the use of standardization, differentiation, or a combination of these depends on the specific operating conditions of the manufacturer and is determined by the final result - the level of economic efficiency of sales and its volume achieved using these methods.

Another important element of the assortment and product policy in general is the removal of ineffective products from the program. Goods that are obsolete and economically ineffective, although perhaps in some demand, may be confiscated. The decision to remove or retain a product in the enterprise program is preceded by an assessment of the quality of the performance of each product on the market. In this case, it is necessary to take into account combined information from all markets where they are sold in order to establish the real sales volume and the level of profitability (profitability) in dynamics that each of its products provides to the manufacturer.

Thus, the manufacturer must organize systematic monitoring of the product’s behavior on the market and its life cycle. Only under this condition will complete and reliable information be obtained, allowing you to make the right decisions. To facilitate solving the problem, you should have a methodology for assessing the position of the product in the various markets where the enterprise operates, and the methodology should be relatively simple.

Making the final decision to withdraw a product from the program or to continue its sale can be simplified if, already at the product development stage, quantitative requirements for it are established: the level (standard) of payback, sales volume and/or profit (taking into account the full cost of resources). If a product ceases to meet these criteria, then the nature of the decision to seize it is thereby predetermined.

A product that has exhausted its market potential and is not withdrawn from the production program on time brings large losses, requiring expenditures of funds, effort and time disproportionate to the results obtained. Therefore, if the manufacturer does not have a clear system of criteria for removing goods from the production and sales program and does not systematically analyze the goods being manufactured and sold, then its assortment will inevitably be “overloaded” with ineffective products with all the ensuing negative consequences for the manufacturer.

In market conditions, planning is one of the most important conditions for organizing the effective operation of an enterprise. Planning covers all the main areas of its production and economic activities - sales, finance, production, procurement, scientific and design developments, which are closely interrelated. This activity is based on identifying and forecasting demand, analysis and assessment of available resources and prospects for the development of economic conditions. This implies the need to link planning with marketing and control in order to constantly adjust production and sales indicators following changes in market demand. Assortment planning is the first and main step in the strategic planning of a company’s presence in the market.

Product policy presupposes certain targeted actions of the commodity producer or the presence of premeditated principles of behavior. It is designed to ensure continuity of decisions and measures for the formation of the assortment and its management; maintaining the competitiveness of goods at the required level; finding optimal product niches (segments) for goods; development and implementation of packaging, labeling and product servicing strategies. A well-thought-out product policy not only allows you to optimize the process of updating the product range, but also serves as a kind of indicator for the management of the enterprise of the general direction of actions that can correct current situations.

Product range

Product line - a group of products that are closely related to each other, either because they function similarly, or because they are sold to the same groups of customers, or through the same types of retail establishments, or within the same range prices

Thus, the General Motors Corporation produces a range of cars, and the Revlon Corporation produces a range of cosmetics.

Each product range requires its own marketing strategy. In most companies, work with each product range is assigned to a separate person. This manager will have to make a number of important decisions regarding the breadth of the product range and the goods that represent it.

Deciding on the breadth of product range

The product range manager must decide on the breadth of the product range. The assortment is too narrow if profits can be increased by adding new products to it, and too wide if profits can be increased by excluding a number of products from it.

The breadth of the product range is partly determined by the goals that the company sets for itself. Firms trying to be known as suppliers of a comprehensive range and/or seeking to gain a large market share or expand it usually have a wide range of products. They are less concerned about the situation when one or another of the goods they produce does not make a profit. Firms that are primarily interested in the high profitability of their business usually have a narrowed range of profitable products.

Over time, the product range usually expands. A company can expand its product range in two ways: by increasing it or by saturating it.

The decision to increase the product range

The product range of any firm is part of the overall product range offered by the industry as a whole. For example, in the automobile market, BMW cars occupy a place among mid- and high-cost models. Range expansion occurs when a firm expands beyond what it currently produces. This build-up can go either down or up, or in both directions at the same time.

Building down. Many firms initially locate themselves in the upper echelon of the market and subsequently gradually expand their range to cover the lower echelons. Growing down may be aimed at containing competitors, attacking them, or penetrating the fastest growing market segments.

One of the huge miscalculations of a number of American firms was their reluctance to expand their product range down into the lower echelons of their markets. The General Motors Corporation opposed the production of smaller cars, the Xerox Corporation opposed smaller copiers, and the Harley-Davidson Corporation opposed the production of smaller motorcycles. In all these cases, Japanese firms, recognizing great opportunities, acted quickly and successfully.

Building up. Firms operating in the lower echelons of the market may want to penetrate the upper echelons. They may be attracted by the higher growth rates of the upper echelons of the market or their increased profitability. Or perhaps the company simply wants to position itself as a manufacturer with a comprehensive range.

The decision to scale up can be risky. Competitors in higher echelons are not only well entrenched in their positions, but can also launch a counterattack by starting to penetrate the lower echelons of the market. Potential buyers may not believe that a new company is able to produce high quality products. Finally, a firm's sales agents and distributors may simply lack the skills and knowledge to serve the upper echelons of the market.

Bilateral extension. A company operating in the middle echelon of the market may decide to expand its product range both up and down at the same time. An example is the strategy of Texas Instruments in the pocket calculator market. Before the company appeared in this market, its lower echelons in terms of price and quality were mainly captured by the Bowmar company, and the upper echelons in terms of the same price and quality indicators were captured by the Hewlett Packard corporation.

The Texas Instruments company offered its first calculators to the middle echelon of the market as products of average price and average level of quality. Gradually, she began to expand her range in both directions. It offered better calculators at the same prices, or even lower, than Bowmar, and eventually eliminated it as a competitor. At the same time, Texas Instruments developed high-quality calculators, began selling them cheaper than Hewlett-Packard's calculators, and took a good share of the latter's sales in the upper echelons of the market. This two-pronged strategy helped Texas Instruments gain leadership in the pocket calculator market.

The decision to saturate the product range

Expansion of the product range can also occur through the addition of new products within its existing framework. There are several reasons why they resort to saturation of the assortment:

1) the desire to receive additional profits,

2) attempts to satisfy dealers complaining about gaps in the existing assortment,

3) the desire to use unused production capacities,

4) attempts to become a leading company with an exhaustive range of products

5) the desire to eliminate gaps in order to prevent competitors from entering.

Oversaturation of assortment leads to a decrease in overall profits, as products begin to undermine each other's sales, and consumers become confused. When releasing new products, a company should make sure that the new product is noticeably different from existing products.

Product nomenclature decisions

If an organization has several assortment groups of goods, they speak of a product range. We define the product range as follows:

Product nomenclature is the totality of all assortment groups of goods and product units offered to customers by a specific seller. The Avon product range includes products from three main product groups: cosmetics, jewelry, and household goods. The range of each of them consists of several subgroups of goods. For example, the assortment of cosmetic products can be divided into the following product subgroups: lipstick, blush, powder, etc. The assortment as a whole and each subgroup consists of many individual products. In total, the Avon product range includes 1,300 different products. A large department store carries about 10,000 products, a typical K-Mart deals about 15,000, and the General Electric Corporation produces about 250,000 different products.

The company's product range can be described in terms of its breadth, richness, depth and harmony. By the breadth of the product range of the Procter & Gamble corporation, they mean the total number of product ranges produced by the company. In Fig. 53 The breadth of the product range is represented by six assortment groups of goods. (In fact, the corporation also produces many products from other product groups, including dental elixirs, toilet paper, etc.)

By the saturation of the product range of the Procter and Gamble corporation, they mean the total number of individual products that make it up. By the depth of the product range, corporations mean the offering options for each individual product within the assortment group. So, if Crest toothpaste is offered in three different packaging and with two flavors (regular and menthol), this means that the depth of its offer is six.

By harmonious product range we mean the degree of proximity between products of different product groups in terms of their end use, requirements for the organization of production, distribution channels or some other indicators. Procter & Gamble's product lines are harmonious because they are all consumer goods that pass through the same distribution channels. At the same time, they are less harmonious in terms of differences in the functions performed by products for customers.

These four parameters characterizing the product range help the company determine its product policy. A firm can expand its operations in four ways. It can expand the product range by including new product groups. It can increase the saturation of existing assortment groups of goods, approaching the position of a company with an exhaustive assortment. It can offer more options for each of the available products, i.e., deepen its product range. And finally, depending on whether it seeks to gain a strong reputation in one area or operate in several areas at once, a company can purposefully achieve greater or, conversely, less harmony between products of different product groups.

Thus, we see that product policy is a multidimensional and complex area of activity that requires making decisions about the specific features of product nomenclature, product range, use of brand names, packaging and services. These decisions must be made not only on the basis of a full understanding of customer needs and the strategic approaches taken by competitors, but also with increasing attention to public opinion and legislation affecting the field of commodity production.

When making product production decisions, marketing managers must be sure to consider all applicable laws and regulations. Here are the main points to pay special attention to.

Adding new products and removing old ones. The implementation of decisions to replenish the product range with new assortment groups of goods, especially through the acquisition of other companies, which threatens to cause a decrease in the level of competition, may be prevented by the Kefauver-Seller Act of 1950. Decisions on the discontinuation of old products must be made taking into account those legal obligations formalized in written or implied, which the company has to its suppliers, dealers or customers in one way or another connected with the product being discontinued.

Protection of patent rights. When developing new products, a company must comply with the provisions of patent law. It is not allowed to create a product that is “unfairly similar” to another company’s existing product. An example of this is the lawsuit by Polaroid, which tried to prevent the sale of a new Kodak instant camera on the grounds that the appearance of this camera was associated with a violation of the corresponding patents held by Polaroid.

Quality and safety of goods. Manufacturers of foods, drugs, cosmetics and some fibers are required to strictly adhere to specific laws regarding the quality and safety of their products. The Federal Food, Drug, and Cosmetic Act protects consumers from unsafe and contaminated food, drug, and cosmetic products. A number of laws provide for inspection of the sanitary condition of meat and poultry processing enterprises. Laws have been passed regarding safety standards regarding the production of goods such as textiles, chemicals, automobiles, toys, medicines and poisons. The Consumer Product Safety Act, passed in 1972, established the Consumer Product Safety Commission, which has the power to ban or confiscate dangerous products and impose severe penalties on violators of the law. A consumer who is injured as a result of using a product with a design defect may have legal action against the manufacturer or dealer. Every year, more than 1 million lawsuits are filed regarding the quality of products. As a result, cases of goods being withdrawn from sale have increased significantly. General Motors Corp. spent $3.5 million in postage alone when it had to notify 6.5 million car owners about engine mounting defects.

Product quality guarantees. In an attempt to convince consumers of the good quality of their products, many manufacturers offer written guarantees. However, these warranties often contain disclaimers and the warranties themselves are written in language that is incomprehensible to the average consumer. It often turns out that he is not entitled to the services, repairs and replacements that he believed were included in the warranty.

To protect consumers, Congress passed the Magnuson Moss Warranty and Federal Trade Commission Act in 1975. This law requires that full warranties meet a number of minimum requirements, including provisions for repair "within a reasonable period of time without charge" or replacement of the product or full reimbursement to the consumer if the product does not work and "after a reasonable number of attempts." repair it. Otherwise, the company must clearly state that it provides only a limited warranty. The law has already forced some manufacturers to replace full warranties with limited ones, and others to completely abandon warranties as a marketing tool.

Sources

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Range- a nomenclature list of types and varieties of goods, distinguished by marketing indicators, a list of types and varieties of goods in a manufacturing or trading enterprise. An assortment is a list of objects offered for sale by a trading enterprise.

In accordance with GOST R 51303-99 “Trade. Terms. Definitions “an assortment of goods is a set of goods combined according to one or a set of characteristics.

Classification of assortment. The range of goods is classified according to the following criteria:

1). Based on location, the product range is divided into groups:

industrial range
trade assortment

Industrial range- a nomenclature list of goods produced by a particular industry. Production assortment is a list of goods included in the enterprise’s production program.

Trade assortment- a set of goods sold in the trading network, including industrial goods from various local manufacturers and imported goods. The trade assortment presented on the shelves of a trade enterprise determines the type of trade enterprise (universal and special, trade enterprises with a combined and mixed assortment) and the form of trade service. In stores of the same type with different retail areas, the assortment will vary significantly in the number of types of goods and product groups.

2). Depending on the breadth of product coverage, i.e. number of groups, subgroups, types, varieties, brands, types, names, the assortment is divided into the following subgroups:

Simple assortment– this is an assortment of goods represented by such types that are classified according to no more than three criteria
Complex assortment– this is an assortment of goods represented by types that are classified according to more than three criteria (shoes, clothing).
Enlarged assortment– this is an assortment of goods that are combined according to common characteristics into certain groups of goods. Most often, functional or social purpose is used as a common feature.
Species assortment is a set of goods of various types and names that satisfy similar needs. It is an integral part of the enlarged assortment. For example, children's shoes are an integral part of an enlarged range of footwear products.
Branded assortment– this is a set of goods of the same type, brand names or belonging to a group of brand names. Such products satisfy physiological needs and are largely aimed at satisfying social and psychological needs. For example, prestigious brands of clothing, shoes, perfumes, cars, wines, etc.
Expanded assortment- This is an assortment of goods represented by varieties of goods. A variety is a collection of goods of a certain type, distinguished by a number of particular characteristics. Thus, signs of dividing types of clothing into varieties are style and complexity of processing.

3). Depending on the specialization and attention of the seller to certain product groups, the assortment is divided into:

Main assortment – a nomenclature list of types and varieties of goods determined by the seller as core for the organization and focused on the target group of buyers chosen by the company, which are profit-generating for the company.
Related products– this is a set of goods that perform auxiliary functions and are not core to a given organization. So, for a shoe store, the accompanying assortment is shoe care items, in a grocery store - matches, soap and other household goods.
Mixed assortment is a set of goods of different groups, types, names, characterized by a wide variety of functional purposes. A mixed assortment is typical for stores that sell food and non-food products and target a variety of consumer preferences and target groups.

4). According to the degree of satisfaction of needs, the following types of assortment are distinguished:

Rational assortment- this is a set of goods that most fully satisfies realistically justified needs that provide maximum quality of life at a certain level of development of science, technology, and technology.
Optimal assortment is a set of goods that satisfies real needs with the maximum beneficial effect for consumers with minimal costs for their design, production development and delivery to consumers.

Key assortment indicators:

breadth of assortment;
assortment structure;
assortment list;
rationality of assortment;
harmony of assortment.

Completeness of assortment- this is the correspondence of the actual availability of types of goods to existing demand, this is the ability of goods of a homogeneous group to satisfy similar needs.

Depth of assortment-– the number of varieties per product article, the number of products in one assortment group.

Assortment stability is an indicator characterizing fluctuations in its completeness and breadth over a certain period of time.

Novelty (updating) of the assortment- this is the ability of the assortment to satisfy changing needs through new products. The novelty of the assortment is characterized by two indicators: actual renewal and degree of renewal.

Breadth of assortment– this is the number of species, varieties and names of homogeneous and heterogeneous groups.

Assortment structure– this is the ratio of groups, subgroups, types and varieties of goods in the store’s assortment. The assortment structure is characterized by breadth and depth. The structure of the assortment is of decisive importance when organizing its formation in the store.

Assortment list– this is the minimum acceptable number of types of consumer goods that determine the profile of a retail trade organization.

Rationality of assortment is the ability of a set of goods to most fully satisfy the realistic needs of different consumer segments.

Harmony of assortment– this is a property of a set of goods of different groups, characterizing the degree of their proximity to ensure rational distribution of goods, sales and (or) use.

Assortment management is an activity aimed at achieving the requirements of assortment rationality. The fundamental controls are:

formation of assortment;
establishing the level of requirements for indicators that determine the rationality of the assortment.

Formation of assortment– this is the activity of compiling a set of goods that allows you to satisfy real or predicted needs, as well as achieve the goals defined by the management of the organization.

Assortment group- enlarged presentation of the assortment, grouping goods into separate product groups according to a number of characteristics: production method, purpose, design features, etc.

Cost-effective assortment- an assortment product list, which in its entirety ensures that business entities receive the planned amount of profit, i.e. a certain excess of income over costs of selling goods, tax deductions.

Assortment policy- determination of the assortment that is most preferable for successful work in the market and ensuring the economic efficiency of the enterprise as a whole.

Number of impressions: 45226

Products collected in a group, which is formed in accordance with their similarity in one or more characteristics, are called “assortment”.

Types of assortment

The generally accepted division of assortments according to who created them includes product and industrial groups.

Industrial becomes the result of the activities of a manufacturing enterprise or several companies operating within the same industry. This type of assortment is sold by the company itself, and on its basis, individual wholesale and retail trade organizations form their own assortment.

Types of assortment are studied and used in their activities by marketers, since their tasks include organizing procurement and promotion of the product.

The product range is usually called the one presented in wholesale and retail stores. That is, these are goods that are sold in one place, produced by several manufacturers and have different purposes. There are situations when it is presented with the products of one manufacturer, for example in branded stores.

The main types of assortment, their volume and structure are directly influenced by factors such as consumer demand, its dynamics and trends.

Products of different origins offered on the market to satisfy the same need are called consumer product lines. These products may differ in certain parameters or in price.

What is breadth of product coverage?

This term characterizes how fully the formed types meet the expectations and needs of clients. Based on how the breadth of product coverage can be characterized, assortments are distinguished:

simple;
complex;
group;
expanded;
accompanying;
mixed.

All these types of assortment, their distinctive features and specifics are described in more detail below.

Characteristics of assortment subgroups

If a product presented by a manufacturer or trading enterprise can be classified according to a minimum number of characteristics (three), it is called simple. This definition is recorded in GOST. Many stores that prefer to sell everyday goods rely on such an assortment. The types of assortment also depend on the income level of customers.

Sellers who form this type of assortment count on buyers with low incomes and locate their enterprises in their places of residence. An example would be a village store selling bread.

In the case when classification can be carried out according to a larger number of characteristics, they speak of a complex assortment. Different types of large retail trade organizations (department stores, hypermarkets), as well as wholesale centers create an assortment of this type.

Variety of assortment

An enlarged assortment represents products united by some common feature or set of characteristics. These are often features related to functionality or social purpose. The organizational structure of the enterprise is formed on the basis of the enlarged assortment.

When the assortment of goods includes a large number of their varieties, it is called expanded. These types of product assortment take place in Here the seller offers various brands, subgroups and types of goods, their varieties and names. A feature of the expanded assortment is the relatively small number of groups into which homogeneous products are combined.

Features of accompanying and mixed assortment

Related products are products whose functions are classified as auxiliary, that is, their sale is not the main source of income for the organization. An example of this type of organization of trading activities is the availability of soap and other household goods in a grocery store.

The mixed type assortment is distinguished by a very wide variety of products with different functional purposes. This approach is used by stores offering both food and non-food products.

Other types of assortment

A more detailed classification identifies several more categories into which the assortment is divided. The types of assortment, based on how fully they satisfy the needs, look like this:

Rational - within its framework, products are offered that are designed to adequately satisfy consumers, which contributes to the achievement of the company's goals.
Optimal - for its formation, goods are needed that will not only meet consumer needs, but will also be useful for them. The specificity of this type of assortment is that the costs of design, production and sales of its products are reduced to a minimum. Products belonging to the optimal range are extremely competitive.

Depending on what needs the range is intended to satisfy, it is called:

real;
predictable.

The first is characterized by the fact that the necessary goods are available from the manufacturer or trade organization.

The second is a list of products that can satisfy needs that have not yet arisen (anticipated).

Assortment and novelty of goods

The well-being of any enterprise depends on the extent to which its product meets the interests of the consumer. Demand is influenced by a number of factors, including socio-economic, demographic, trade and organizational, national, as well as random market influences.

Brand new.
Improved.
Modified.
A product of market novelty.

It is necessary to distinguish between the concepts of “modernized” and “modified” goods. Updating a product is considered a modernization, and changing its properties or replacing them is already a modification. In addition, the situation in which a new product is released, but an obsolete product continues to be produced, is considered as differentiation.

Keywords: breadth, completeness, updating, etc., management of the range of goods (for example, food or non-food products)

Range– this is a set of goods combined according to a certain characteristic (by purpose, by age and gender, by material, etc.).

Types of assortment. It can be commercial or industrial. Trade assortment – sold in wholesale and retail trade. Industrial range – produced at an industrial enterprise. The trade range is always wider. But if the company has its own specialized store, then the assortment will be the same.

The assortment is: simple, complex, narrow, wide, group, specific and brand.

Simple – characterized by a small number of features (for example, stationery).

Complex – characterized by a large number of features.

A narrow assortment is a set of goods of one type, one group or subgroup (umbrellas, ties, etc.), i.e. narrow and specialized.

A wide assortment is a set of goods from several groups (supermarket, department store, market), i.e. highly specialized.

Group – characterized by a set of goods of a certain group.

Specific – characterized by a set of goods of certain types (for example, umbrellas).

Branded – characterized by a set of goods of a certain brand (for example, Stinol refrigerators).

Assortment indicators. These include: assortment structure, assortment breadth, assortment completeness, assortment stability, assortment renewal and rate of product assortment renewal, as well as assortment depth.

1. Assortment structure– this is the quantitative ratio of various groups and subgroups of goods in trade turnover, expressed as a percentage or in money. The structure is:

Rational – i.e. one that satisfies consumers (consumer demand).

Actual – i.e. one that is characterized by the actual availability of goods.

Preferred – i.e. one that is identified in the process of studying demand.

The rational structure is determined by the rationality coefficient: K R = or K R =, where K R 1.

A rational structure is capable of meeting the needs of the population with a minimum number.

2. Breadth of assortment is the number of types and varieties of goods that satisfy consumer demand.

The breadth of the assortment is determined by calculating the breadth coefficient: K Ш = ;

The basic indicator of breadth is taken as the indicator of these standards (domestic and international), indicators of enterprises and firms according to their catalogues, etc.

3.Complete assortment- this is the ratio of the actual number of types of goods to the quantity assumed by contractual obligations or assortment list.

The completeness of the assortment is calculated by determining the completeness coefficient: K P = ;

4. Stability of the assortment- These are fluctuations in breadth and completeness over a certain time, and are associated with the rhythm of delivery.

The stability of the assortment is determined by the stability coefficient: K U = ;

5. Assortment update- This is a replenishment of new goods.

Renewal of the assortment is characterized by the degree of renewal, and is expressed as a percentage: O A = %;

6.Update rate– is determined for the goods to which it relates and which have a certain service life (shoes, shirts, etc.).

The renewal rate is determined by the formula: T O =%.

Assortment factors. They can be divided into 3 groups: 1). Socio-economic factors. These include: - demographic information shifts; - growth of material condition (stratification); - cultural level; - fashion and prestige; - geographical and climatic conditions; - seasonality; - national characteristics; - professional visibility. 2). Methodological factors. These include: - validity of the application;

Correct study of demand; - study of the consumer and manufacturer.

3). Organizational and technological. These include: - completeness and novelty; - scientific and technical progress; - standardization and unification.

Product assortment management is an activity aimed at creating an optimal assortment structure. Optimal assortment is an assortment that, with a minimum quantity, satisfies the maximum needs of customers (consumer demand)