Location, location, location! – New research technique to help retailers optimise shelf space allocation

confused-shopper‘SURF’ from MMR Research Worldwide identifies the likely impact on sales of changes to SKU ranges and helps retailers select the right SKUs.

MMR Research Worldwide has developed a new range optimisation tool that helps retailers decide on the optimum product ranges to stock in terms of both size and structure. ‘SURF’, standing for Steal and Unduplicated Reach and Frequency, measures ‘power to displace’ and the extent of overlap between one SKU and another and calculates the predicted impact on sales of any change in the product line-up. It is an ideal tool to improve retailers’ understanding of which products to prioritise in a crowded market of growing range extensions, and particularly when allocating shelf space to brands with multiple SKUs within the same category.

Because it provides a more involved, choice-based process for respondents, feedback is more considered and therefore more representative of in-store purchase decisions. SURF significantly advances the current industry-standard method, TURF (Total Unduplicated Reach and Frequency) which relies only on ‘appeal’ to assess overlap and breadth of interest as a basis for ranging decisions.

Detailed

“There is a real need for better, more detailed information to help facilitate accurate range selection decisions,” says Mat Lintern, MMR Research Worldwide managing director. “As well as delivering its primary results in the form of highly actionable potential change in sales figures, SURF answers important questions such as; from which product is an SKU stealing? How likely is a new SKU to cannibalise the existing range? To what extent are incremental sales driven by new users or increased frequency amongst existing users?”

MMR has proven SURF with clients in savoury snack, breakfast cereal, baby food and personal care categories, where it has been adapted to suit the needs of small right through to the largest product ranges.

The MMR Group

www.mmr-research.com