Commodity Assortment

The firm that develops new types of products must decide questions about the product range.

Commodity assortment is a certain group of goods that are closely related to each other in terms of similarity of functioning, groups of buyers interested in them , the types of their trading establishments or the price range.

For example, the assortment manufacturer "Revlon" is a group of cosmetics, "General Motors" - cars, "Panasonic" - television and video equipment.

In the commodity policy, the most interesting are the groups of goods that perform similar functions.

The product range is characterized by such concepts as breadth (the number of product groups offered), the depth (the number of titles in each group), the saturation (expansion of the product assortment with the addition of new products), harmony (proximity to the production processes, distribution channels, end user), rationality (The ability to satisfy the buyer), sustainability (the ability to meet demand), novelty (the ability to meet the changing needs of customers).

The breadth that characterizes the assortment, diversifies the products according to the requirements of consumers in order to encourage them to buy in one place. If a company produces several assortment groups at the same time, it means that it is a commodity nomenclature. Many large companies specialize in the production of several assortment groups: Avon (which includes three product groups: cosmetics, household goods, jewelery), Samsung (groups of video and television equipment, household appliances, telecommunications), " Procter and Gamble "(which range comprises six product groups: detergents, disposable diapers, toothpaste, deodorants, soap, coffee).

The depth of the product range is the ability to meet the needs of different segments of customers for a particular type of one product. For example, toothpaste can be sold in different packages and with different characteristics of the composition.

The saturation of the product range is the addition of new products within the existing range, while the new products must differ significantly from those already available. This happens when the firm strives for leadership, loads production facilities in order to avoid downtime of equipment, tries to prevent the growth of competition. An example of high saturation of the assortment is Procter and Gamble, which produces about twenty names of detergents.

Saturation of the assortment leads to an increase in costs, as there is a need to maintain commodity stocks, modify the goods. There is a danger of sales fluctuations. Therefore, the product range in marketing requires a thoughtful management to maintain the company's profitability and successful struggle against competitors.

Product range management is the coordination of various types of activities: comprehensive market research, design, scientific and technical work, sales organization, advertising, service, demand stimulation. The difficulty of accomplishing this task lies in the sufficient complexity of combining all the elements. If this is not done, then the enterprise can start to produce not the products that the consumer needs, but which is convenient for the production of production units. Marketing considers such a situation as a direct contradiction to what needs to be done in reality to achieve efficiency.

The tasks of assortment management are to prepare a consumer product specification, transfer it to the project department and track that the prototype has been brought to the customer's requirements. This is the only way to invest in the modification of products, and not spend money on advertising outdated goods. The assortment is managed by the head of the marketing department.