What does assortment planning involve in category management?

Assortment planning is a critical component of category management that focuses on determining the range of products to offer within a specific category. This process involves analyzing consumer preferences, market trends, and competitive offerings to create a product mix that meets customer needs while maximizing sales and profitability for the retailer. Effective assortment planning helps ensure that the right products are available in appropriate quantities and varieties, which can enhance customer satisfaction and drive retailer performance.

By concentrating on the wide variety of products to be included, assortment planning goes beyond just selecting a few items. It requires a strategic approach to decide the depth and breadth of product offerings, taking into consideration factors like seasonality, demand elasticity, and demographic trends. Therefore, this option accurately reflects the primary aim of assortment planning within the broader context of category management, differentiating it from other aspects like shelf placement, marketing channels, or production costs.