What is a Deep Assortment?
Deep assortment is the total number of SKUs that a retailer offers in a particular product category. Specialty stores with a deep assortment will offer a greater number of SKUs than a retailer with a shallow assortment.
A supplement shop, for example, will most likely provide a wide range of choices to customers who purchase protein powders. For this, it will employ a deep assortment approach by concentrating on fewer product lines but with high depth and variety within each.
A deep assortment strategy is a retailing technique employed to increase the number of SKUs (stock-keeping units) offered by a retailer that is often used by retailers who want to offer a wide range of options in a particular product category to their customers but may not have the necessary space to do so.
Deep Assortment can also be used to differentiate a retailer from its competitors by offering products that they may not be able to. The deep assortment is often used in categories where customers have a high degree of product knowledge and are looking for a wide range of options to choose from, such as in the clothing or electronics categories.
Before delving deep into deep assortment strategies, let us also understand what an assortment strategy is-
What Is an Assortment Strategy?
An assortment strategy is a decision-making process that helps retailers choose the right mix of products to stock in their stores. The main objective of an assortment strategy is to ensure that the retailer has the right mix of products to meet customer demand while also maximizing profits.
A comprehensive assortment strategy includes two components- breadth and depth
1. Product Depth
How many variants of a certain product a store has (for example, how many sizes or flavors there are).
2. Product Breadth
The number of different products or product lines a store has (for example, how many types of products the store sells).
Types of Assortment Strategies
1. Wide Assortment
A retailer employing a wide assortment strategy offers a large number of SKUs across a broad range of product categories. This type of retailer is often referred to as a “one-stop-shop” because they offer everything from groceries to clothing to electronics.
A wide selection strategy is one in which a store sells a variety of products, but just one or two brands for each type of product. It also refers to the broad assortment planning used to attract customers looking for different products.
2. Deep Assortment
A retail business employing a deep assortment strategy offers a large number of SKUs within a specific product category. This type of retailer is often referred to as a “specialty shop” because they offer a deep selection of products within a specific category.
For example, a Deep Assortment retailer in the clothing category may offer a wide range of sizes and colors for a specific type of clothing, such as jeans. It is used to meet consumer demand for different variations of the same product.
3. Scrambled Assortment
A retailer employing a scrambled assortment strategy offers a mix of both wide and deep assortments. This type of retailer is often referred to as a “department store” because they offer a wide range of products across multiple categories.
For example, a Scrambled Assortment retailer in the clothing category may offer a wide range of sizes and colors for a specific type of clothing, such as jeans, as well as a wide range of other clothing items.
4. Localized Assortment
A retailer employing a localized assortment strategy offers a mix of products that are tailored to the specific needs of their local market. This type of retailer is often referred to as a “convenience store” because they offer a limited selection of products that are typically used on a daily basis.
For example, a Localized Assortment retailer in the food category may offer a limited selection of items that are common in the local diet.
5. Mass-Market Assortment
A retailer employing a mass-market assortment strategy offers a wide range of products that are targeted at a wide audience. This type of retailer is often referred to as a “superstore” or “hypermarket” because they offer a one-stop shopping experience for customers.
For example, a Mass-Market Assortment retailer in the food category may offer a wide range of items that are common in diets across the country.
Importance of Deep Assortment Strategies
There are various reasons why Deep Assortment strategies are important, some of which are listed below
1. Helps to attract new customers
A deep assortment offers a wide range of variety of products, which can help to attract new customers who are looking for a specific product.
2. Helps to retain existing customers
The deep assortment also helps to retain existing customers by offering them a wide range of products. This helps to keep them satisfied and coming back for more.
3. Helps to increase sales
Offering a wide range of products also helps to increase sales as customers are more likely to find what they are looking for and make a purchase.
4. Helps to improve customer satisfaction
The deep assortment also helps to improve customer satisfaction as it offers them a wide range of products to choose from. This means that they are more likely to find the product that they want and be satisfied with their purchase.
Deep Assortment is important as it helps to attract new customers, retain existing customers, increase sales, and improve customer satisfaction. It is one of the most effective ways to grow a business and succeed in today’s competitive market.
How to create a Winning Deep Assortment Plan
Some of the steps that will help you create a successful deep assortment strategy are
1. Know your customer
The first and most important step is to know your customer. It is important to understand what they want and need. This will help you determine the right products to offer them.
2. Research your competition
It is also important to research your competition. This will help you understand what they are offering and how you can improve upon it.
3. Choose the right products
Once you have done your research, it is time to choose the right products. Make sure that you offer a wide variety of products that will appeal to your target market. Then you should also ensure that you incorporate most of the possible variations of the products you have.
4. Promote your Deep Assortment
Once you have chosen the right products, it is time to promote your Deep Assortment. Make sure that you let your customers know about the wide range of products that you offer. You can do this through marketing and advertising.
5. Evaluate and adjust
Finally, it is important to evaluate and adjust your Deep Assortment strategy. This will help you ensure that you are offering the right products and making the necessary adjustments to stay ahead of your competition.
Deep Assortment is a key strategy for any business looking to grow and succeed in today’s competitive market. By following the steps above, you can create a winning Deep Assortment strategy for your business.
Examples of Successful Deep Assortment Strategies
There are many examples of successful Deep Assortment strategies. Some of the most successful companies have been able to create a winning Deep Assortment strategy by following the steps outlined above.
- Walmart is one of the most successful Deep Assortment retailers. They have been able to create a winning strategy by offering a wide range of products that appeal to their target market. They have also been able to stay ahead of their competition by constantly evaluating and adjusting their Deep Assortment strategy.
- Amazon is another company that has used Deep Assortment to great success. They offer a wide range of products that appeal to their target market. The key features of Amazon assortment strategies include – a large selection of items, low prices, and fast delivery. Amazon has been able to stay ahead of the competition by offering a Deep Assortment of products that its customers want and need.
- Ikea is another company that has benefited greatly from Deep Assortment. They provide a diverse selection of goods that appeal to their target demographic. IKEA has been using a deep assortment since the very beginning. The company offers a wide range of products, including furniture, home decor, and kitchenware. They are known for their low prices and their ability to appeal to a wide range of customers.
- Costco is also widely popular for its Deep Assortment. Its assortment strategy revolves around a wide range of products and their variations at low prices. It has been moving ahead on the path of success through its ability to offer a Deep Assortment that its customers find appealing.
As you can see, there are many examples of companies that have used Deep Assortment to great success. If you want to create a winning Deep Assortment strategy for your business, then follow the steps outlined above. You can also look to these successful companies for inspiration.
The Benefits of Deep Assortment
There are many benefits that businesses can enjoy by implementing Deep Assortment strategies. Some of the most notable benefits include-
1. Increased sales
Deep Assortment can help businesses increase sales by offering a wider range of products. This gives customers more options to choose from and makes it more likely that they will find the product they want.
2. Improved customer satisfaction
Deep Assortment can also help businesses improve customer satisfaction. This is because customers will have a wider range of products to choose from. They will also be more likely to find the product they want.
3. Increased market share
Deep Assortment can also help businesses increase their market share. This is because businesses that offer a Deep Assortment are more likely to attract new customers and retain existing ones.
4. Improved profitability
Deep Assortment can also help businesses improve their profitability. This is because Deep Assortment can help businesses save money on inventory and storage costs. Additionally, Deep Assortment can help businesses generate more revenue through increased sales.
As you can see, there are many benefits that businesses can enjoy by implementing Deep Assortment strategies. If you want to improve your business, then you should consider implementing Deep Assortment.
Disadvantages of Deep Assortment
While Deep Assortment has many advantages, there are also some disadvantages that businesses should be aware of. Some of the most notable disadvantages include-
1. Increased costs
Deep Assortment can also lead to increased costs. This is because businesses need to purchase a wider range of products. They also need to store these products properly.
2. Increased risk
Deep Assortment can also lead to increased risk. This is because businesses need to be careful when choosing the products they want to offer. They also need to make sure that these products are in demand.
Deep Assortment can also lead to increased complexity. This is because businesses need to manage a larger number of products. They also need to make sure that these products are properly stored and displayed.
If you want to implement a deep product assortment strategy in your business, then there are a few things you need to do. First, you need to identify your target market and understand their needs.
Second, you need to create a Deep Assortment strategy that meets the needs of your target market. Finally, you need to implement your Deep Assortment strategy and constantly monitor and adjust it as needed.
If you follow these steps, then you will be well on your way to implementing a successful Deep Assortment strategy for your business.
In the end, what do you think? Is Deep Assortment right for your business? Let us know in the comments below!
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