What does assortment planning in category management involve?

Assortment planning in category management primarily focuses on determining the optimal mix of products to meet consumer demand while aligning with business objectives. This process involves analyzing various factors such as customer preferences, market trends, and sales data to curate a selection of products that maximizes sales and customer satisfaction.

By identifying the right balance of products, assortment planning helps retailers provide a diverse yet relevant product offering that appeals to their target customers. It considers factors such as seasonality, product life cycles, and competitive positioning, ensuring that the product range strategically supports the overall goals of the business, such as enhancing profitability and improving the shopping experience.

Other options touch on various aspects of category management but do not encapsulate the primary function of assortment planning. For instance, eliminating underperforming products may be a part of the assortment planning process but is a narrower focus. Deciding on marketing strategies relates to how products are promoted rather than choosing which products to offer. Analyzing competitor pricing, while crucial for competitive strategy, focuses more on pricing dynamics rather than the assortment itself. Thus, the essence of assortment planning lies in that critical task of determining the right mix of products offered.