‘Shrink to Grow’
by José Carlos Gonzalez Hurtado,
President International, IRI

Assortment optimisation to gain the competitive advantage

 

Gonzalez Hurtado with Brenda Koornneef, Business Executive, Group Marketing & Corporate Strategy, Tiger Brands, demonstrated at the Consumer Goods Forum Global Summit 2016 in Cape Town (South Africa), how a new approach to assortment optimisation - based on looking at the category as a dynamic product mix - can enhance value for brands, categories and retailers. He examined why assortment can be used as a strategic growth opportunity for FMCG marketers and retailers thanks to IRI’s powerful big data and analytics technologies.

During this Consumer Goods Forum Global Summit 2016, IRI also launched a new thought leadership white paper, ‘Shrink to Grow’, where Jose Carlos Gonzalez Hurtado unveiled a unique methodology for assortment optimisation using advanced analytics modelling and the very latest in big data technology. It enables retailers and manufacturers to view the category as a dynamic product mix that can enhance value for brands, categories and retailers. And this new solution is exclusive to IRI’s clients.

Providing shoppers with the best line-up of consumer goods has always been a challenge for retailers. However with product offer being a key driver in store choice, getting it right is critical. An overabundance of products has made identifying which brands to stock even more difficult. Retailers are also concerned not to miss opportunities to satisfy shopper desires and to innovate.

IRI’s experts have proved that there is no direct relationship between an average number of items in store and revenue sales. Therefore to get the optimal range assortment, IRI suggests an approach that reviews the incremental sales based on the attractiveness of a product’s characteristics (or attributes), according to what is really impacting the shopper’s propensity to purchase.

To learn more about this unique and highly effective approach for retailers and manufacturers, please click here.

“An overabundance of FMCG products at the same time as limited shelf space, more competition between private label and national brands, and a more frequent change of products that are stocked by retailers demands a radical new approach to winning for both retailers and manufacturers.” - said Jose Carlos Gonzalez Hurtado, President of IRI International.
“It is clear that retailers and manufacturers can reduce assortment and still increase sales if they closely monitor assortment by utilising big data analytics and technology.”