Identify opportunities for product selection expansion or ... - Nielsen

Identify opportunities for product selection
expansion or contraction across departments,
aisles and categories
with Nielsen Assortman for Retailers
Thousands of SKUs are introduced each year, and thousands
more are delisted. How do you keep up? Don’t focus on SKUs
first, focus on your strategy.
Answers to Assortment Issues
• Grow sales by attracting more
consumers to the store with the right
assortment
• Identify private label growth
opportunities
• Take over-SKU’d aisles and shrink them
without hurting sales
• Identify the optimal size of your
departments, aisles and categories
• Focus new launches on the areas of the
store that have the strongest propensity
for growth
By partnering with us, you can
evaluate the assortment health of
your departments and aisles, using
our proprietary model with Nielsen
Assortman for Retailers. You can identify
what aisles and categories can be grown
or streamlined to increase your store’s
assortment performance.
After identifying the areas to focus on, use
Nielsen Assortman Optimizer software
to optimize the number of items in each
aisle and simulate the dollar sales change
within the department.
Finally, you can partner with category
captains to use our item-level consulting,
use other Nielsen tools, or use your
internal tools to pinpoint the SKU’s to list
and delist.
Why It Works
By utilizing our assets, the Nielsen
Assortman for Retailers model leverages
disaggregate data across all chains in
a channel to effectively compare your
banner’s assortment to the competitive
market. Nielsen Assortman for Retailers
also controls for consumer demographics*
and store size (among others) to remove
any “noise” in the analysis.
Our proprietary approach allows us
to measure both consumer switching
and merchandising effects. Now, you
can balance departments, aisles and
categories. You can pinpoint the right
areas to grow and shrink. You can optimize
private label performance.
Key Benefits:
• Evaluate the strength of the
assortment in your departments,
aisles and categories
• Determine the optimal number of
items to carry
• Identify the recommended
assortment for each of your
banners
• Simulate the dollar volume change
adding or delisting items
• Set annual targets for your buyers
to ensure the right listing decisions
• Understand category assortment
rebalancing priorities before
engaging category captains
(*where available)

Nielsen Assortman for Retailers
Situation
Senior Management within Acme Grocery,
a large retail chain, conducted an aisle study
to see which categories should be trimmed
and which should be expanded in the over-
SKU’d freezer aisle. The ultimate goal is to
reduce the number of SKUs in the freezer
aisle.
Solution
Using the strategic bubble charts (Figure 1),
Acme Grocery saw that frozen vegetables,
entrees and baking products were weak
performers in the market. They also learned
that frozen pizza performed well overall in
the market.
Next, they compared their assortment
performance to the market to identify where
they could rebalance their assortment in
the aisle. By using the Nielsen Assortman
Optimizer software, they knew how many
items to delist and list, and then simulated
the new sales from these changes (Figures 2
& 3).
Finally, Acme used a quick reference guide
for their Buyers to assist in their daily
decisions (Figure 4). With this guide, they
spent more time on the categories providing
the most value and made decisions more
efficiently.
For more information, contact your Nielsen representative
at 800-988-4226, email assortment@nielsen.com or visit
www.nielsen.com
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