CASELET PRESENTATION

O Sunil’s Assortment Planning

O

• • • •
GROUP10 Ameen Sabik PA
(P19034)
Subhodip Chakrabarti
(P19009)
Ashish Gondane
(P19014)
Ashish Kushwaha
(P19026)
CASE BACKGROUND

Humara Bazaar has been Shelf space is a constraint

operating since 5 years as for Hamara Bazaar due to
a Hypermarket Store which Mr. Sunil is unable to
entertain the vendors

The data from the

Reliance Mart has been affecting merchandising team can be
the sales of Hamara Bazaar used for new product
introduction, driving sales
and profitability
 1. ITEMS TO INCREASE SALES IN

• To identify products which can increase the sales, we have identified the products which have
good demand at the store and contributes significantly through its margin.

Criteria:
• Sales Quantity >500
• Gross Profit/Unit >20
• Gross Margin >20%
 2. DISCOUNTED ITEMS TO SELL MORE
• To put products on discount, we considered the products which have mild demands and significant gross
margin. This will help to increase the demand with acceptable cuts in margins.

Criteria:
• 50 < Sales Quantity <200
• Sale Value/Unit >150
• Gross Margin >20%
 3. COMPETITORS PRODUCTS FOR SET OF ITEMS
• To identify products which needs competitors or substitutes, we would look at products which are
not selling in significant quantity but do have high margins associated with them.

Criteria:
• Sales Quantity <100
• Gross Margin >40%
4. INCREASING OVERALL MARGINS

Negotiate with firms whose SKUs are selling in high quantities so that they offer
trade discounts (as retailer would have bargaining power in these products)

Rearrange the SKU placements such that high demand – high margin items get
increased visibility

Discontinue carrying non-selling products and introduce substitute products of

other brands that are more in demand (preferred brands can be known through
customer survey)
5. SPACE CONSTRAINT – WHICH SKUs TO REMOVE?

SKUs which sell very less and have

low gross margins should be opted
for removal. They take up shelf
space but are neither in demand nor
provide rewarding margins.

Thus, the criteria that was selected

is as follows:
• Sale quantity < 50 units
• Gross Margin < 10%
6. DROPPING TWO BRANDS

Criteria to drop the brands from the portfolio

• LOW CONTRIBUTION • LOW SALES • AVAILABILITY OF SUBSTITUTE BRANDS

Total Sales Value % KLIN % Archies

40823970.18 0.009% 0.007%

SALE QTY SALE GROSS Sale Gross Gross Cost

ITEM BRAND NAME (UNITS) VALUE (RS) MARGIN % Value/Unit Profit Profit/Unit Cost Value Value/unit
KLIN HAND SANITIZER ( MUSK) 100
64902 KLIN ML 4 316 20 79.00 63.20 15.80 252.80 63.20
KLIN HANDS SANITIZER (LEMON) 100
64901 KLIN ML 6 474 20 79.00 94.80 15.80 379.20 63.20
65346 KLIN KLIN HANDS CITRON 45ML 35 1365 20 39.00 273.00 7.80 1092.00 31.20
65345 KLIN KLIN HANDS MUSK 45ML 37 1443 20 39.00 288.60 7.80 1154.40 31.20
82 3598
28610 ARCHIES ARCHIES DARK DEO SPRAY 100ML 6 600 22 100.00 132.00 22.00 468.00 78.00
28609 ARCHIES ARCHIES GHOST DEO SPRAY 100ML 7 700 22 100.00 154.00 22.00 546.00 78.00
28605 ARCHIES ARCHIES UXR DEO SPRAY 100ML 8 642 18.44 80.25 118.38 14.80 523.62 65.45
28608 ARCHIES ARCHIES UXR DEO PERFUME 100ML 10 860 10.47 86.00 90.04 9.00 769.96 77.00
31 2802
7. ADDITIONAL DATA

Some additional data may be used to drive the decisions

• Product Categories might have helped to segregate the data better, rather than
restricting it to just ‘Personal Care’

• Product Demand to anticipate the demand of the product categories better

• Shelf-Space occupied per product (in sq. ft)

• SKUs running out of stock frequently

THANK YOU