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One of the key questions asked in the category management process is that of which individual product lines (SKUs) to stock within the category.
Attempts to develop optimal category assortments have often centred on an analysis of EPoS data. This strategy, however, has a fundamental flaw in that substitutability is inferred and there is no direct measure of one SKU’s suitability as a replacement for another.
The cornerstone of our category management tool kit is ONE survey which we have designed to overcome this problem and answer some of the fundamental questions raised by category managers:
- Is the category a repertoire or substitution category?
- What is my optimal SKU assortment for the category?
- How should I develop my category planograms to facilitate the shopping process?
- What will happen to category satisfaction, volume sales and margins if my assortment varies from the optimum?
- What characteristics of SKUs are taken into account in the purchase decision process?’
The cornerstone survey is complemented by a variety of techniques such as, Accompanied shopping, EPoS data analysis, Exit interviews and Focus groups, which can be tailored to feed into specific strategic and tactical issues.
