Sunday, August 28, 2011

How to decide the right Merchandise Mix in a FMCG Store

Usually the large format stores like BigBazaar, Spar, Hypercity, Foodworld, Spencers, More, Smart Retail carry a variety of merchandise to cater to all categories of buyers who enter these stores to satisfy their monthly shopping needs. It is important to understand how these retailers decide their category mix inorder to cater to every customer segement to prevent any lost sale opportunity or disappointing a customer with an Out of stock situation

Lets see the typical category mix of such a Store
Categories included to form the Assortment of a super market mainly includes Food, Non Food, General Merchandise and Agri Business

Composition of these categories are usually
1. Food - 30% of total sales
2. Non Food - 20%
3. General Merchandise - Usually in the range of 5%
4. AgriBusiness  - Forms 48% of Total Sales
Food Category includes following subcategories
1. Fresh / Frozen - These are mainly daily delivery products like Butter / Batter / Eggs / Icecream excluding vegetables
2. Processed Foods - like Ready to Eat/ Readymade items like Maggi, MTR, Jams, Sauce excluding Atta products
3. Impulse Items - like Namkeens, Biscuits, Cookies and Chips
4. Beverages - This category has deeper classification like
  • Aerated Drinks - Pepsi / Coke
  • FruitPulp drinks - Frooti / Maaza
  • Health Drinks - Redbull / Gatrode
  • Citrus Drinks - Nimboos
  • Milk based Drinkss - Flavored milks, Soy Milk
  • Tea and Coffee
Non Food Category Include
Personal  and Oral Care - like soaps, toothpaste, hair oil, shampoos etc
Household - like Washing Powders / Bars, Bleach and Liquid wash and Toilet care
General Merchandise - include Plastics, Steel, Scrubbers and Stationary items
Agribusiness includes Vegetables, Fruits, Ghee, Oils, Rice, Flour and Pulses

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