PROFESSIONAL PRACTICES

Retailers Approach to Customer Centric Assortment Planning

- A Study report by CapGemini

Presented by,
Abhinav bansal
Jaikishan
Praveen Raj T
Satheesh Kumar K
Sathish M
NEED OF THE STUDY

 Changing Customer Behaviors

 Assortment by Local retailers
 Assortment by Advanced retailers
 Seeking means to optimize former
assortment
 Complexity in the Assortment planning
 Conquer local market segment
Customer Centric Assortment Planning
(CCAP)
 Customer (Trend + Behavior)  Plan for
betterment in Assortment to
Customers(CCAP)
 A system were the following analysis takes
place – Key factors
* Customer trend & behavior
* Catchment analysis
* Competitor analysis
 Example
PLANNING

 Granular planning – Strategic Planning

 Category planning
 Assortment Planning
 Tactical Planning
 Execution
STORE CLUSTERING

 Clusters – Small no. of grouping based on

Customer preferences & Product affinity
 Characteristic of Store Clusters
 Action plan
 Factors conflict Store clusters from other
processes
 Usage of Retail space allocation
STORE CLUSTERING - BENEFITS

 Increased sales
 Lower Inventory costs
 Improved In-store Experience
 Customer satisfaction
 Brand loyalty
Key Conclusions from the Research

 Retailers across the globe are struggling with shrinking top lines
 For a store's success, merchandise mix is the second most
critical factor after location
 Localized assortments helps boost sales volumes
 Store clustering and mix standardization form the basis of
assortment planning
 Assortment plans need to be benchmarked against regional
brands
 Backward integration of store requirements is critical to prevent
bottom line depletion
 Inventory visibility across the chain is required to keep ageing
under control