Product Range Analysis

High level of sales is one of the main goals of any enterprise that is engaged in production. But in order to confidently feel in the conditions of the modern market, it is necessary to offer buyers not only quality, but also a wide choice of actual positions. This goal will help to achieve a constant analysis of the range and structure of products. And this method will be relevant not only for large manufacturers, but also for small businesses.

What is the assortment

So, the fulfillment of the assortment plan is one of the key conditions for the full satisfaction of the customers' needs. The very same term is used to determine the list of product names that a particular enterprise produces. At the same time, the volume of goods with a distinction by type is indicated.

The assortment can be group, intragroup and complete. The essence of the analysis in this case is reduced mainly to determining the degree of obsolescence of products and its parameters of homogeneity.

In the framework of this topic it is worth remembering about the nomenclature, which is a list of the names of goods produced by the company, as well as their codes. The latter are installed for each specific type of products according to the OKPP (All-Russian classifier of industrial products).

Why it is necessary to evaluate the assortment

Analytics in the production sector is needed to obtain the average number of types of goods produced. Analysis of product range and structure Allows you to competently organize the process of expanding the list of products, which ultimately determines loyalty to the brand by buyers with different preferences.

One of the results of the analysis mentioned above is the differentiation (division) of one type of product in accordance with the different tastes of the target audience. We are talking about the production of goods that are close in their consumer qualities and are able to replace each other, but still have some differences. This approach allows you to gain an advantage in the market in an environment of active competition.

Thus, in order for the process of differentiation to be effective, a competent analysis of the product mix is necessary.

Commodity Nomenclature

To better understand the essence of work with the nomenclature, it makes sense to pay attention to the features of the commodity line. This term is used to determine the product range. In fact, we are talking about a group of goods that are closely related to each other because of close areas of use and, as a consequence, are intended for one target audience. Trade enterprises used for their implementation (shops, salons of the network) are also of the same type. For the assortment range, one price range is used.

It is from various production lines that commodity nomenclature consists. Accordingly, without understanding what the assortment is formed from and how it is characterized, it will be extremely difficult to conduct its analysis.

Characteristics of the Commodity Nomenclature

If you try to study any group of different assortment lines, you can find that it has certain characteristics: saturation, breadth, harmony and depth.

The saturation of the commodity nomenclature is nothing more than the total number of individual goods from which it consists.

Latitude is the following characteristic, without which it will be difficult to perform an analysis of the product range, and it means the total number of commodity groups produced by a particular enterprise. As an example, you can cite a store selling, say, food, but at the same time offering customers different types of goods: bakery products, meat products, etc.

Under the harmonious commodity nomenclature, one should understand the proximity of the form of end use of products belonging to different assortment groups. Similar can be the distribution channels, the requirements for the organization of production and other indicators. Here again, an example of a grocery store, in which you can buy all the necessary ingredients for cooking, say, the first dish.

Considering the analysis of the assortment, one can not ignore the depth of the commodity group. In this case, it is a question of various variants of the offer of the separate goods which are in one group.

Cost

Analyzing the assortment of goods, the price should always be taken into account, because the level of sales of a particular product largely depends on it. At the same time, within the framework of production, the cost of finished goods can be displayed in two forms: commodity output and gross output.

If we consider the gross, then it should include finished goods, issued by all units of a particular enterprise for use within the company (its own non-industrial units, capital construction, etc.).

As an example, we can cite semi-finished products of our own production, which are subsequently released to the side for their capital construction or given to the subdivisions of a company of non-industrial type.

Commodity production, as opposed to gross, includes only an unfinished product. The cost of such products is accounted for in those enterprises where the production cycle does not exceed 12 months. This condition is important, since in cases where the output of finished products lasts more than a year, still unreleased goods can undergo significant price fluctuations.

Structure of products

The analysis of the assortment of the enterprise will not be complete without taking this factor into account. Under the structure of goods is to understand the ratio of different types of finished products against the background of the total volume of their production.

The fulfillment of the plan for the structure of products means that the originally planned ratio of its species in the finished product release has been retained. If the plan is performed unevenly, this will lead to a tangible deviation from the planned structure of the assortment, which, in turn, will violate the conditions that are taken into account when comparing the economic indicators of the enterprise.

To eliminate structural shifts, they need to be able to calculate and calculate. The most suitable for achieving this goal is the method of direct billing for all goods, as well as the method of average prices. Using this approach, one can avoid the influence of undesirable changes in the assortment structure on economic indicators.

Analysis of assortment of goods

The very process of analysis begins with the study of the fact that the dynamics of commodity and gross output is changing, while the increment is fixed and the index is calculated.

Also, operational analytics is performed, for which data are used for a week, ten days, a month and, respectively, a quarter. Along with this, the process of working with commodity lines includes analysis of the implementation of the plan for the range and nomenclature.

It is worth recalling that under the nomenclature, it is necessary to understand the list of names of various products, as well as their codes, which are established in accordance with the classifier of industrial products.

Studying the analysis of the assortment of goods, it is necessary to remember the following: when the degree of fulfillment of the plan is estimated, the planned output of various goods and the actual result are compared. Thus, the executed plan can be considered only when all the components of the assortment were produced in the required volume.

If the necessary indicators were not achieved, the factors that caused this result are identified. By the way, they can be both internal and external.

The first can be attributed to shortcomings in the organization and subsequent management of the production process, the state of equipment, etc. The second group of reasons is reduced to a change in demand for certain types of goods, market conditions and belated launch of production capacity.

Method of analysis

The analysis of the assortment and its structure begins with an assessment of the extent to which the plan for the production of various commodity lines has been implemented. As it was written above, this indicator is determined by comparing the actual release of goods (the main types are taken into account) and the one that was planned.

To accomplish this task - a competent assessment - several proven methods help:

- calculation of the implementation rate of the plan for the production of the required types of products;

- the method of the lowest percent;

- determination of the share in the general list of goods, on the basis of which the production plan was carried out.

These methods will allow a competent analysis of the assortment And, accordingly, will make production "sharpened" under the current positions.

Formation of commodity lines

In fact, the analyst has a direct impact on the fact that the assortment will be. It is for the competent formation of commodity lines that the degree of relevance of different types of products is considered, as well as the need for their diversification.

The urgency of such processes is conditioned by the need to provide the manufacturer with the necessary combination of goods, in a timely manner, otherwise competitors will get a tangible advantage.

Against such background, analysis of the assortment structure should include distribution of products into categories such as old and new. It is also important to take into account other characteristics that are directly related to finished products: serial and single production, license, know-how, conventional goods and knowledge-intensive products.

Before forming an assortment, the company, as a rule, is developing a concept that will allow to optimize the production of a specific product line. The fact that the concept is necessary is obvious, since it is intended to identify goods that best correspond to the variety and structure of consumers' demand. The production of these products will be subsequently targeted by the enterprise.

How the concept is formed

In order to develop an actual concept, several indicators are analyzed:

- the level of prices for a specific assortment group;

- the ratio of the value of goods;

- refresh rate and level of assortment.

In most cases, the forecast is focused only on determining the trend of development of various commodity lines. Under the trend is to understand the change in the assortment structure of demand and, as a consequence, the commodity supply.

Against the background of this information, it should be noted that the analysis of the assortment, its planning, formation and management is a complex of processes that never stop. That is, work with the assortment is always done and can stop only if the specific commodity group is withdrawn from production.

Principles of formation

If we consider the analysis of the range and structure of products by the example of an enterprise belonging to large producers, then it is worth paying attention to the widespread algorithm of actions used by such companies. Its essence boils down to several key stages of analytics.

First of all, the existing demand for manufactured products is estimated. Then follows the organization of the most effective use of company resources (technological, financial, raw, labor and technical).

Next comes the stage of the assortment formation, which includes four tasks:

- identification of prospective and current needs of customers;

- determination of how competitive the manufactured goods and planned production are;

- studying the life cycle of goods on the market and adopting such measures as the introduction of new more relevant items, as well as the elimination of obsolete product lines;

- Finally, an assessment is made of the possible consequences of the changes made (the level of risk is estimated and the economic efficiency).

Analysis of the assortment of the store is made using a more simplified algorithm (the questions related to the production process are not taken into account).

Quality

In order for products to meet the needs of buyers, not only a variety of goods is needed, but also a decent level of quality.

To test this indicator, the individual qualities of different product lines are evaluated. Attention in this case is drawn to the following product characteristics:

- Reliability (maintainability, durability, reliability);

- aesthetics (design, appearance, ergonomics);

- usefulness (iron content in ore, fat content of milk, etc.);

- manufacturability (energy intensity and labor intensity).

Analysis of the quality of the assortment, by evaluating these characteristics, gives an idea of how much the assortment corresponds to market expectations. Without such an analysis, production as a result may prove ineffective.

Results

Analysis of product range and structure by example Large and small enterprises allows to draw a conclusion about the obvious relevance of this stage of work with production. Without a competent evaluation of the various indicators associated with product lines, it will not be easy to take a firm position in a particular market segment.