What is the definition of Assortment planning?

Answer 1

Assortment planning breaks the Merchandise Plan down into the components that enable the planner to address customer preference and need. These components are product attributes, styles, colors, and SKUs. By addressing these components, the assortment plan becomes the transition to the customer by way of the store. In developing a good assortment plan, the retailer hopes to: • Manage inventory while addressing customer need and demand • Develop a complete range of merchandise for presentation • Enhance and maintain the company philosophy and image • Support and execute the overall merchandising strategy • Integrate with other planning processes, such as merchandise allocation The assortment plan, then, provides the most effective way to balance the presentation of merchandise to the customer. The properly assorted presentation ensures enough selection without overstocking and strikes the right balance between breadth (e.g. number of styles) and depth (quantity of each style). In addition, the good assortment plan considers seasonality, to provide the right merchandise flow. Because assortment planning addresses the most detailed element of merchandising to the customer—the items for sale—the process is often very detailed and time- consuming. Automation is therefore a must in building effective assortment plans.