Master the Mix

YOUR SHOPPERS COUNT ON YOU to have the products they want, in the store they shop.  Let KSS Retail show you how to improve your shoppers loyalty with you by carrying the mix of products that are most relevant to them.

Basket Driver and KVI Identification: A basket driver is defined to be an item which is important to consumers who typically purchase high-valued baskets. One footprint of a basket driver is that it appears with much higher than average frequency in high-value or high-profit baskets. A KVI can be characterized, at least in part, as an item important to a large fraction of consumers, and of whose price consumers typically are cognizant of, and sensitive to. Market basket level footprints of a KVI item X include that X appears with much higher than average frequency in baskets of most types, and that X exhibits a consumer price sensitivity and response that indicates that the consumer is aware of the item’s price at competing retailers.

Identifications such as these will enable the retailer to improve its pricing and promotional strategies, for example, by directing its competitor surveys, refining its parity constraints, and feeding into its promotional strategy. Each of these elements, plus the impact of KVI and basket driver items on cross-effect identification, can be realized by means of PriceStrat configurations, or as inputs to other processes that the retailer might utilize in designing pricing and promotional strategies.

Brand and Product Assortment: We combine insights gained from shopper segmentation and basket driver and KVI analysis with switching behaviors in reaction to temporary out-of-stocks or discontinued items. From these insights, we can measure the relative value of carrying specific brands in important subcategories. These measures can become a part of assortment and shelf space allocation decisions. By combining this analysis with consumer segmentation, assortment decisions can focus on brands needed to attract and retain the most profitable consumers.