Determining the optimal product flavor/variety assortment can be a daunting task. Whether limitations are imposed by the retailer or by the manufacturer itself, manufacturers must make smart choices to maximize profit per linear foot at retail. In order to determine the optimal product line, companies must be able to measure the incremental value of each additional SKU. A TURF (Total Unduplicated Reach and Frequency) analysis is a methodology often used when marketers try to narrow down flavor/variety combinations.
For example, Mountain Ridge, a local dairy with a strong community following has decided to launch its own brand of yogurt nationally, but initially is being limited to only two flavors by distributors. While Strawberry and Cherry may be their two most popular flavors, it does not mean they should be the two flavors Mountain Ridge distributes. That’s because both flavors could appeal to the same consumer and the consumer may choose to buy only one flavor, not both. Banana, the third most popular flavor, might be a better choice than Cherry for a two-flavor national roll-out as Banana appeals to a different consumer than Strawberry or Cherry and increases the likelihood of reaching a wider audience. Moreover, if Cherry is not available, those consumers that prefer it might easily be satisfied with Strawberry.
In the end, both reach (penetration) and frequency (buying rate) are important factors to consider, and having a good understanding of both metrics are essential when helping manufacturers make the right assortment decisions. VeraQuest offers a wide range of advanced analytical tools to help uncover insights that are not always obvious from straight-forward techniques. Please ask us about the complete range of advanced analytics we can offer.