THE SECRET TO A SUCCESSFUL ASSORTMENT STRATEGY

HERE ARE FOUR INDICATORS TO HELP YOU IDENTIFY EXPANDABLE CATEGORIES AND DETERMINE WHERE TO FOCUS YOUR ASSORTMENT INVESTMENTS.

With so many products on the shelf, how do you build an assortment strategy that captures consumer attention and contributes growth to the category?

FOCUS ON EXPANDABLE CATEGORIES TO DRIVE GROWTH

SURFERS• Categories are performing well, as distribution points and sales are up.• Products are highly sought after by retailers and present leadership

opportunities for FMCG manufacturers.• Invest in these products, whether it’s through new products, assortment,

pricing, etc.

• Categories are growing and are doing well in their current state.• Products are already doing well, so, adding new SKUs could have

negative impact.• Avoid adding new investments in this category.

• Sales and distribution points in these categories are declining butexpandable.

• Sometimes they are expandable just because retailers cut too many SKUs.• Try investing here even though it seems counterintuitive to invest in a

declining category. There is latent opportunity that’s waiting to be realized.

• Categories are in dire straights.• Declining sales and distribution points signal a need to reinvigorate the

category.• Reduce investments / invest wisely.

ALCOHOLIC BEVERAGE CATEGORY HEALTHY SNACK CATEGORY

Base $ Vol % Chg+2.0%

TOTAL DISTRIBUTION POINTS+3.3%

Expandable

RTD BEVERAGE CATEGORY

Base $ Vol % Chg+15.8%

TOTAL DISTRIBUTION POINTS+13.2%

Expandable

Base $ Vol % Chg

TOTAL DISTRIBUTION POINTS

+5.1%

+4.7%Expandable

1

MIRAGES

Base $ Vol % Chg+5.1%

TOTAL DISTRIBUTION POINTS+1.9%

Not Expandable

Base $ Vol % Chg+3.9%

TOTAL DISTRIBUTION POINTS+2.6%

Not Expandable

Base $ Vol % Chg

TOTAL DISTRIBUTION POINTS

TOTAL DISTRIBUTION POINTS TOTAL DISTRIBUTION POINTSTOTAL DISTRIBUTION POINTS

TOTAL DISTRIBUTION POINTS TOTAL DISTRIBUTION POINTSTOTAL DISTRIBUTION POINTS

+8.7%

+4.6%Not Expandable

Not Expandable Not ExpandableNot Expandable

2

SLEEPERS

Base $ Vol % Chg-1.7%

+1.6%Expandable

Base $ Vol % Chg-1.7%

-1.7%Expandable

Base $ Vol % Chg-0.9%

-0.3%Expandable

3

SLIDE DISH CATEGORY FROZEN CATEGORY BAKING CATEGORY

RENOVATION

Base $ Vol % Chg-0.5%

-2.0%Base $ Vol % Chg

-4.8%

-1.7%Base $ Vol % Chg

-8.6%

-5.7%

4

ENERGY CATEGORY DESSERT FORM PAPER CATEGORY

RTD BEVERAGE DELI CATEGORY MEAT CATEGORY

DON’T MISS THE IMPORTANT ROLE OF EXPANDABILITY IN ASSORTMENT. Download “Going Against The Grain To Create A Successful Assortment Strategy” to start optimizing for growth today.

FOR MORE INFORMATION CONTACT YOUR NIELSEN REPRESENTATIVE AT 866-864-1244OR VISIT WWW.NIELSEN.COM

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary.

THERE IS AN AVERAGE OF ABOUT 39,000 ITEMS IN A TYPICALGROCERY STORE

1) Supermarket Facts 2016. Food Marketing Institute.2) Nielsen, Assortman, Total Store, Total U.S. Food, Last 52 weeks ended July 9, 2016.3) Nielsen, Answers on Demand, Total U.S. Food, Last 52 weeks ended July 16, 2016.

SOURCES