Product Assortment Planning

When L'Oréal uses AI to create new hair colors based on social media trends, they're in salons within weeks. Kraft Heinz—dead last in our study—still takes months to tweak a formula. After analyzing 26 major CPG companies at IMD's Center for Future Readiness, I discovered what separates winners from losers: The most future-ready companies treat consumer data like insider trading information. BACKGROUND: CPG in 2025 is brutal. Inflation persists. Gen-Z demands sustainability without premiums. Tariffs reshape supply chains daily. McKinsey & Company identified 150+ AI use cases for CPG transformation. Only 5 of 26 companies actually execute them. THE REVELATION: Coca-Cola didn't randomly launch Topo Chico Hard Seltzer. Their AI spotted the trend through social listening while competitors debated in boardrooms. By launch, they'd secured distribution nationwide. That's not innovation. That's prediction. What separates the top 5: L'Oréal (#1): 3.5% of sales to R&D. AI analyzes preferences real-time. Virtual try-on apps. Creates products from social trends. A 110-year company with startup velocity. The Coca-Cola Company (#2): Democratized AI internally. Every manager accesses demand forecasting. They analyze weather + social sentiment + sales simultaneously. These aren't tech companies selling beauty and beverages. They're prediction machines that happen to make products. THE WINNER'S FRAMEWORK: 1. AI at scale, not in pilots Winners integrate into workflows. Losers run demos. 2. Supply chains that anticipate Real-time visibility + AI forecasting = competitive firepower 3. D2C as intelligence goldmine 73% use multiple channels. Mine every interaction. 4. Disrupt yourself first Coca-Cola launched Costa Coffee, hard seltzers. Grew. Kraft Heinz protected legacy brands. Shrank. 5. Sustainable without premium Gen-Z spending hits $12T by 2030. They demand action at everyday prices. —— The inconvenient truth: Most CPG companies treat data like reporting instead of radar. Winners don't predict trends—they're already shipping products while competitors debate. Technological patience (knowing when to scale) + organizational agility (pivoting fast) = market domination. Three years from now, every CPG company operates like L'Oréal. Or they don't operate at all. P.S. Full Future Readiness Indicator here: https://bit.ly/3YTBzbX

Mastering Assortment Strategy in Retail: 8-Step Approach to Customer Delight The secret to retail success?  It's not just about having products, it's about having the right products for the right customers at the right price.  This is where a robust assortment strategy comes into play. Trying to summarize the assortment strategy through my 20+ years of retail and e-com experience. We will dive deep into how a retailer should tailor assortment to meet the needs of diverse customer cohorts.  This goes beyond simple demographics! 1. KYC (know your customer) - Customer Segmentation (Cohorts) : It can never be a one-size-fits-all strategy.  Analyse data to segment customers based on location (metro vs. tier 2/3 towns), demographics (age, gender, region), lifestyle (high-rise dwellers vs. independent houses), and even pincode-level analysis for e-commerce to deliver personalized experiences. 2. Value for Money (VFM):  Pricing is king! leverage EDLP (Every Day Low Prices), large pack savings, and strategic entry-level priced assortment (think 49/-, 99/- deals) to deliver exceptional value. 3. Seasonality & Festivals:  India's vibrant festivals and seasons are key drivers of demand.  Proactively plan relevant assortment well in advance, ensuring customers find exactly what they need when they need it – building trust and loyalty. 4. Brand Strategy:  A balanced portfolio is crucial.  Strategically incorporate national, challenger, and regional brands to offer diverse choices.  Regional brands, often offering incredible VFM, make an instant connection with the customers. 5. Private Label (PL) Power: In categories where branding is less crucial, private label products offer significant value, driving strong customer stickiness.  This is particularly evident in staples like pulses and dry fruits. 6. Evolving Trends:  The world of retail is constantly changing. monitor emerging trends, innovations & global selection through social media, market research, and supplier insights, ensure to include the latest and most sought-after products into assortment.  Be agile and adapt quickly! 7. Supply Chain Efficiency: Assortment strategy cant be just about marketing; it's about operational efficiency also. Carefully consider supply chain costs, warehousing, and logistics to ensure products are readily available. Availability is the Key 8. Continuous Improvement: Assortment planning is an ongoing process.  conduct quarterly reviews, analyzing velocity, profitability, and emerging trends to continuously optimize offerings.  Consider "assortment modules" for faster scaling and roll-out. This 8 step comprehensive approach will allow to offer a tailored shopping experience that truly resonates with diverse customer base. What are your key strategies for optimizing assortment? Share your insights in the comments! #retail #assortmentstrategy #supplychain #FMCG #ecommerce #merchandising #categorymanagement #omnichannel #indiaretail #valueformoney #privatelabel

📦 Understanding Re-Order Point (ROP) and Replenishment in Warehouse Management 📦 In supply chain and warehouse management, knowing when to reorder stock is crucial for maintaining the right balance between inventory availability and cost efficiency. One of the key concepts in inventory management is the Re-Order Point (ROP). But how do you calculate it accurately? And what are the most effective replenishment strategies? 🔹 What is the Re-Order Point (ROP)? ROP is the threshold at which stock must be replenished to prevent shortages before the next delivery arrives. In other words, it is the minimum inventory level at which a new purchase order should be placed. 🔢 Basic ROP Formula: Without Safety Stock: 📌 ROP = Lead Time (Days) × Average Daily Consumption With Safety Stock: 📌 ROP = (Lead Time × Average Daily Consumption) + Safety Stock 🛠 Example Case: A warehouse has a daily material consumption of 10 units, with a procurement lead time of 7 days. 📌 ROP = 7 × 10 = 70 So, when the stock reaches 70 units, the company should immediately reorder to avoid running out of stock while waiting for the next delivery. 🔹 Effective Replenishment Strategies Determining the ROP alone is not enough. Businesses must also adopt the right replenishment strategy to ensure a steady inventory flow without excessive overstocking. Here are three common strategies: 1️⃣ Just-In-Time (JIT) This approach ensures that stock is ordered only when it is needed. It is suitable for businesses with stable demand and reliable suppliers who can deliver quickly. ✅ Pros: Reduces storage costs and minimizes inventory obsolescence. ❌ Challenges: Highly dependent on a smooth supply chain—any disruption can cause stockouts. 2️⃣ Fixed Order Quantity With this method, orders are placed in fixed quantities whenever the stock reaches the ROP. The order quantity is often based on Minimum Order Quantity (MOQ) or Economic Order Quantity (EOQ). ✅ Pros: Helps maintain consistent stock levels. ❌ Challenges: Can lead to overstocking if demand drops unexpectedly. 3️⃣ Periodic Review System Stock levels are reviewed at fixed intervals (e.g., monthly), and orders are placed accordingly. ✅ Pros: Suitable for items with fluctuating demand. ❌ Challenges: If the review period is too long, stockouts may occur before the next replenishment cycle. 🎯 Conclusion Determining the optimal Re-Order Point (ROP) is essential to ensure stock availability without excessive inventory costs. By understanding consumption patterns, lead time, and choosing the right replenishment strategy, warehouse operations can run efficiently and seamlessly, avoiding both stockouts and overstock situations. 🔥 What ROP and replenishment strategy do you use in your warehouse? Let’s discuss in the comments! #Inventory #Warehouse #Supplychain #SCM #Logistic #Rop #Replenishment

Product Vision ≠ Product Strategy Product Strategy ≠ Product Roadmap Product vision is the starting point for product strategy. Product Strategy is a collection of answers to the most important questions. Finally, a good product strategy leads to the creation of an effective roadmap. And a good product strategy, should answer the most important questions: 1. 𝗩𝗶𝘀𝗶𝗼𝗻: what is the vision 2. 𝗦𝘂𝗰𝗰𝗲𝘀𝘀: what are the success criteria and goals 3. 𝗨𝘀𝗲𝗿𝘀: who are our users? who are not our users? 4. 𝗠𝗮𝗿𝗸𝗲𝘁 / 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 / 𝗠𝗮𝗰𝗿𝗼: what are important characteristics about the market, competition, industry? How can we leverage them to create a winning strategy 5. 𝗦𝗪𝗢𝗧: What are our strengths, weaknesses, opportunities, and threats 6. 𝗙𝗼𝗰𝘂𝘀 𝗮𝗿𝗲𝗮𝘀: Based on ALL OF THE ABOVE, what should we focus on? What should we NOT focus on? 7. 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝗶𝗻𝗴: How should we position our product? 8. 𝗥𝗶𝘀𝗸𝘀: Are there any risks that will prevent us from reaching our goals? If yes, how can we mitigate them? What questions do you answer while creating a product strategy?

#Merchandising_in_FMCG general trade success: #Q1: Why is merchandising important in FMCG general trade? A: Merchandising is crucial because it drives sales, enhances product visibility, and influences consumer buying behavior in a highly competitive environment with limited retail space. #Q2: How does product visibility and shelf placement impact sales? A: Placing products at eye level ("eye level = buy level") ensures that best-selling and new products are easily accessible. It also prevents products from being hidden behind competitors’ items, thereby boosting sales. #Q3: What role does planogram execution play in merchandising? A: A structured planogram ensures consistent product displays across all stores. It strategically places high-demand products—often near checkout points—to encourage impulse buying and maintains proper spacing to reduce clutter. #Q4: How is stock availability maintained in general trade? A: Regular stock checks and a FIFO (First In, First Out) approach help avoid out-of-stock situations and expired products. Additionally, maintaining an optimal mix of SKUs based on sales trends is essential for continuous availability. #Q5: What is the significance of POSM (Point of Sale Materials) and branding? A: POSM items such as banners, shelf talkers, and danglers enhance brand recall and ensure promotional messages are clearly visible. Festive and seasonal branding also helps capture customer attention and engagement. #Q6: How do seasonal and promotional merchandising strategies contribute to success? A: By adapting displays and promotions to seasonal demands (e.g., summer beverages or festival sweets), and by highlighting special offers and combo deals, merchandising can significantly increase customer attraction and basket size. #Q7: In what ways does merchandising aid in competitive differentiation and building retailer relationships? A: A well-merchandised brand stands out from competitors, which is key to capturing consumer attention. Engaging with retailers about merchandising strategies also ensures better compliance and optimal space allocation. #Q8: How does effective merchandising influence consumer engagement and buying behavior? A: Attractive and strategically designed displays create a positive shopping experience. Cross-merchandising (e.g., placing complementary products together) and clearly highlighting product benefits encourage product trials and boost sales conversion. #Q9: Why are data-driven decisions important in merchandising? A: Tracking sell-through rates, analyzing fast- and slow-moving SKUs, and refining planograms based on real-time data helps identify execution gaps and optimize displays, ensuring continual improvement and sales maximization. #Q10: What is the overall impact of a strong merchandising strategy in FMCG general trade? A:A robust merchandising strategy keeps products visible, accessible, and desirable, leading to increased sales and long-term market success.

When range planning for my clients, I always suggest this one thing (Because, to me, it makes so much sense) Include a balanced mix of the following product types: → Core → Commercial → Directional What do these mean? Core: Timeless, essential pieces that reflect your brand identity. They provide consistent sales and ensure steady cash flow. Commercial: Seasonal, trend-driven designs that are wearable and aimed at maximising broad appeal and sales. Directional: Bold, experimental pieces that set trends and showcase creativity. These are higher-risk but reinforce your brand’s forward-thinking image. This balanced approach allows you to: ✅ Maintain a steady cash flow ✅ Stay aligned with current trends ✅ Better understand your customer base I find this strategy particularly effective for range plans with 8 or more pieces. Fashion brands and designers: What do you find to be the best sellers within your collections? ——
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I found a way to triple eCommerce revenue without writing hundreds of articles. Instead, by focusing on these big needle-movers (which most brands skip)... We grew a client’s monthly traffic by 115%... and monthly revenue 198% in just 9 months. Here's how: (full eCommerce SEO crash course)👇 #1: Personalize and Streamline the Shopping Experience • Add product recommendations based on user behavior • Show “complete the look” bundles • Enable cart-saving and wishlists • Simplify checkout with guest options, pre-filled forms, one-click purchase, and collapsible stages #2: Leverage Seasonal Search Trends Ask ChatGPT: “Suggest seasonal keywords for [your niche].” Validate demand in Google Trends. Build content 2 months before interest spikes. This allows you to pre-position for surges in buyer intent. #3 Micro-Moments Strategy There are 4 key decision-making moments in the buyer’s journey. "I want to know" content (researching): • Blog posts answering product questions • FAQ pages about product care/maintenance • Explainer videos showing product features "I want to go" content (for physical stores): • About page with clear location info • Contact page with embedded map • Updated Google Business Profile with photos and reviews "I want to do" content (learning how to use): • How-to guides for using your products • Assembly instructions with clear visuals • Video tutorials showing product in action • Downloadable user manuals "I want to buy" content (ready for purchase): • Product descriptions that highlight benefits • Category pages that compare similar products • Customer reviews and testimonials • Clear pricing and availability info #4 Faceted Navigation Strategy Faceted nav lets users filter by size, color, price, etc. But done wrong, it’ll bloat your index with duplicate URLs. Here’s how to implement it properly: • Use buttons or <input>—not <a href> • Add canonical tags on filtered pages → point to main category page • For high-potential filtered URLs (e.g. “blue running shoes”), create internal links to them • Use AJAX so filters don’t generate new URLs • Remove noindex/nofollow/robots.txt blocks for URLs you want indexed WordPress? Use WP Grid Builder. WooCommerce? Follow the official SEO filtering guide. Shopify? Enable Storefront Filtering. #5 Schema Markup Strategy Schema helps Google understand your content and display rich results. When your listing takes up more real estate and draws the eye, users are more likely to click. Use these two schema types: • Product Schema: includes ratings, reviews, price, availability • BreadcrumbList Schema: helps Google understand your site structure Use ChatGPT to generate your schema fast, then validate it on validator(.)schema(.)org before uploading. Our client’s result after implementing this strategy? • Organic traffic: +115% (12.8K to 27.6K sessions) • Monthly revenue: +198% ($10.2K to $30.6K) • Keywords in top 10: +36% (2,005 to 2,737)

We can learn a lot from Maggie Beer Holdings’, sales have increased, the cost of doing business has accelerated, resulting in a decline in EBITDA. This is why I always emphasise that not all revenue is equal. When you optimise your retail and e-commerce business for revenue, you assume your margins and cost base are equal across your inventory, but frankly, this is a very rare position to be in. The board has proposed the following actions to improve performance: Reduce the cost of doing business. Improve margins. Focus on key areas to drive profitability. Interestingly, Director Tom Kiing has agreed to step into an executive role to oversee the transition and identify and implement cost savings for the e-commerce business. My guess is that the cost of acquiring customers has skyrocketed in the e-commerce business, leading to a loss of control over unit economics. This may have occurred because they didn’t fully understand contribution profit on a product level, a crucial lever in every e-commerce business. If you can manage contribution profit at the product level, you can scale profitably. So, what is product-level contribution profit? It’s the net sales per product, minus COGS, advertising spend, merchant fees, and shipping costs. By understanding your highest contribution profit products, you can scale advertising spend more efficiently and forecast inventory with better accuracy. In my experience Shopping and PMAX campaigns optimised for contribution profit generate 4x the contribution dollars of their peers!

Procurement and Sustainability 🌎 Procurement plays a pivotal role in advancing corporate sustainability objectives. As companies increasingly integrate ESG (Environmental, Social, and Governance) criteria into core operations, procurement emerges as a key enabler of long-term impact. Strategic sourcing decisions influence not only operational efficiency and cost, but also emissions, labor practices, transparency, and innovation across the value chain. One of the most critical areas where procurement contributes is climate action, particularly through the management of Scope 3 emissions. These emissions, which stem from upstream and downstream value chain activities, often represent the largest portion of a company's carbon footprint. Aligning procurement criteria with science-based targets is essential to driving measurable reductions and meeting regulatory and stakeholder expectations. Beyond carbon, procurement is essential in mitigating broader environmental impacts. Supplier selection and material choices directly influence pollution, waste, and the depletion of natural resources. Embracing circular economy principles—such as prioritizing renewable, recycled, and low-impact materials—can help reduce environmental risks while fostering long-term resilience and cost-effectiveness. Social considerations are equally integral. Procurement policies and practices shape the conditions under which goods and services are produced. Ensuring human rights, fair labor practices, and equitable treatment across supply chains is not only a compliance matter but also a strategic imperative to protect brand integrity and license to operate in diverse markets. Robust supplier relationships can also serve as a lever for broader societal impact. By prioritizing local suppliers, small enterprises, or mission-driven vendors, procurement can help redistribute economic value, build trust, and enhance resilience across communities. This approach aligns purchasing decisions with inclusive growth and shared value objectives. Corporate governance aspects of procurement—such as supply chain transparency, compliance, and ethical oversight—are foundational to building sustainable business models. Procurement teams are instrumental in enforcing standards, conducting due diligence, and implementing monitoring mechanisms that reduce reputational, operational, and legal risks. In sum, procurement is not a back-office function but a strategic force in sustainability performance. When integrated with ESG principles, procurement can shape resilient supply chains, accelerate climate and social goals, and reinforce accountability and transparency across the enterprise. Source: Roland Berger #sustainability #sustainable #business #esg #procurement