In today's competitive business world, it is crucial for retailers to keep a close eye on the competition. One effective way to do this is to systematically analyze other retailers' product ranges. By examining their competitors' product offerings in detail, retailers can gain valuable insights and make strategic decisions to strengthen their position in the market. Assortment analysis offers a wealth of benefits for retailers, from competitive analysis and trend identification to product evaluation and price analysis. In this blog post, we'll take a closer look at the benefits of assortment analysis and share best practices on how retailers can conduct a sound competitive analysis. With this knowledge, retailers can optimize their business strategies and gain a decisive competitive advantage.
What does an assortment analysis include?
Assortment analysis is an examination of a company's (or a competitor's) product range. It involves the systematic assessment and evaluation of various aspects such as product categories, brands, prices, features, trends and customer ratings. The goal of assortment analysis is to gain insight into the existing assortment in order to make strategic decisions about assortment design, product positioning, pricing and adaptation to customer needs.
Which assortments are offered?
Assortment analysis is an important tool for retailers to optimize their product range and increase profitability. More specifically, it offers retailers the following benefits:
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- Competitive analysis: by analyzing the assortments of other competitors, retailers can gain information about which products and brands are offered by their direct market competitors. This enables them to better position and differentiate their own offerings to gain competitive advantage.
- Identifying trends: assortment analysis helps retailers identify current market trends and consumer preferences. By observing which new products or product categories are being introduced by other competitors, retailers can respond to changing demand at an early stage and adapt their own assortment accordingly.
- Product evaluation: By analyzing the assortment of other competitors, retailers can evaluate the performance and success of specific products. They can determine which products are well received by customers and which are less successful. These insights can help them optimize their own procurement and sales strategies.
- Price analysis: Assortment analysis enables retailers to check and compare their competitors' prices. This helps them determine their own pricing strategies and develop competitive pricing designs.
- Delivery time and availability: By analyzing the product range, companies can determine which products can be delivered quickly and which may have a longer delivery time. This helps in planning orders and optimizing inventories.
Methods for assortment analysis
To perform an assortment analysis, retailers can use various methods:
- Online research: retailers can search their competitors' websites and online stores to analyze their assortments. They can focus on different categories, product features, prices, brands and customer reviews.
- Store visits: retailers can visit their competitors' stores in person to examine their assortments firsthand. This allows them to observe product placement, shelf layout, and other sales strategies.
- Market studies: retailers can also access external market studies and industry reports to gain information about their competitors' assortments. These studies often provide detailed insights into market share, product innovation and trends.
- Data analytics: By using data analytics software, retailers can analyze large amounts of data about their competitors. This can help identify patterns and correlations and provide valuable insights.
copio analytics to optimize your own assortment
By using copio analytics, the data analysis software developed by oraya, retailers can keep their assortment analysis up to date without the high costs associated with manual work. This allows retailers to optimize their pricing and designs, which can lead to higher sales and profits. With automated assortment monitoring, retailers can make data-driven decisions that will benefit their business in the long run.
- Intelligent assortment matching
It is a powerful technology that enables companies to compare their products with those of their competitors. This is done through a matching algorithm that assigns assortments and validates them systemically or provides suggestions for manual consideration. This process is essential for companies that want to stay ahead of the competition and make informed decisions about their pricing strategies. Using this powerful comparison algorithm, companies can quickly and unambiguously compare their products to those of their competitors, ensuring that they are always offering the best value for money to their customers.
- Direct comparison with the competition
Direct comparison with the competition is a crucial aspect of any business strategy. By comparing their prices with those of their direct market competitors, retailers can gain valuable insights into their market position and make informed decisions about their pricing strategy. With the help of advanced technology, it is now possible to directly compare the prices of individual products, shopping carts or entire categories with those of your competitors. This allows retailers to identify areas where they are charging too much or too little and adjust their prices accordingly to remain competitive in the marketplace.
- Notice changes in assortment
copio analytics makes it easy for retailers to monitor competitors for their prices and inventory changes. They no longer need to manually check competitors' websites or visit their stores to find out about the latest offers. With a status display, copio analytics users receive notifications of any changes to their assortment, including price changes, discounts, and the addition or discontinuation of products. This allows retailers to adjust their own prices and offers accordingly and make informed decisions that benefit their business.
Assortment analysis is an indispensable tool for retailers who want to succeed in the competitive marketplace. By systematically analyzing the assortment of other retailers, they can gain valuable insights to optimize their own offerings and strengthen their position in the market. From competitive analysis and the identification of trends to product evaluation and price analysis, assortment analysis offers numerous benefits.