Depth of Listing Analysis

Depth of listings surveys in retail outlets is a very important analysis to determine range.

Basically, if you have a number of outlets, you will want to make sure that products, where merited, are displayed. However, you may find that i some stores,products are missing just because it was skipped on the planogram.

The product eg a Smirnoff Vodka Bottle could be on a 2 meter display /planogram in Berkely and on the 6 meter display in Campden but not on the 4 meter display in Paisley, Brixton and Brighton!

Even worse, Paisley, Brixton and Brighton may be the biggest selling stores. Or worse still, you delist the product because you think sales are poor!

Or if you are a manufactruer your products are removed from your customers listings - bad news.

Well, what you should produce is a depth of listings analysis. You don't need any fancy software like Spaceman or Intercept, just a spreadsheet like Excel.

Make a table and put all the different lengths of fixtures on the top and all the products down the left. Put the best selling products at the top and work down the list, probably from an independent data supplier eg Nielsen. You shouldn't use your own sales rankings as that will cause problems. ie if a product is missing it will have poor sales and on your table it will be well down the list and unfairly in the delisting territory.

Write down the number of facings each product has on eanch display. Soon you will be getting a visual representation of any gaps in your depths of listings. You will spot the gaps which will be standing out like a sore thumb. It will be easy to see what ones should be listed. Also bear in mind the associates margins on each product.

Perhaps for the sales ranking you should multiply the unit volume of Independent sales data by the margin you buy the product for and rank on that. It will show you your listings based on profit.

However, what if you then divide the profit by the space it takes up. Eg £2000 divided by 10cm = a contribution of £ 200 per cm. You may find that other products are better to display as you can get two of them on. eg instead of having another crate of lager, you could put up a After Dinner Liquer section. You are now well on the road to Direct Product Profitability or DPP!