CPCA- Assortment analysis (Q & A) 2024

CPCA- Assortment analysis (Q & A) 2024 • Which of the following statements describes a product that is incremental? -Answer-A product that adds variety of choice relative to other existing products • Specialty retailers typically offer a limited selection of product lines with a broad number of items in each. This is an example of what type of assortment strategy? -Answer-Narrow and Deep • Market coverage analysis typically determines the cutoff point by which one of the following metrics? -Answer-Cumulative share of sales with the comparison market • In order to identify potential product additions to a retailer's current assortment, the "market coverage" approach compares -Answer-Items selling well in the market, but not carried at the retailer • Which of the following best describes how to correctly read a pareto chart? -Answer-SKU's are listed in descending order (left to right) based on their individual contribution to sales • Assortment analysis should always include TWO Pareto charts- one for the overall market and another for the retail store or chain because it is not possible to plot both geographies on the same chart -Answer-FALSE • To develop a list of recommended deletes for a retail store, which of these actions should you take? Pick two -Answer-Analyze the store's scan or POS data (identify low-performing items), and Analyze market data (identify items that have already been dropped by other retailers) • What is efficient assortment? -Answer-All of the above: a key component of the industry's ECR initiative, a fact-based approach for identifying optimal product assortment, a disciplined process for eliminating product inefficiencies • What is SKU rationalization? -Answer-It is the process of identifying poor performance items that should be deleted from the product assortment to improve category sales