First we identify how many flavor varieties each shopper purchased over the course of the year.
Next , we look at how much category volume buyers of 1,2,3 flavors represent.
The figure shows that 8% of shoppers are variety seekers who buy 5 or more flavors. Variety seekers represent 25% of category volume.
Then, we compare variety-seekers to all shoppers and to MVCs in terms of annual total-store spending. This reveals how valuable each shopper type is to the retailer overall.
The figure shows that variety-seekers spend an average of $3,200 in the store annually - 70% more than the average shopper.
2. Measure size loyalty
Next, we analyze the importance of carrying several size options, by assessing shoppers' loyalty to each size group. To do so, we determine each shoppers' share of requirement to sizes.
Category buyers who are loyal to the secondary size group account for 12% of buyers, but represent 19% of category volume.
CONCLUSION
Flavor variety is important, but reduction or elimination of the secondary size will risk erosion of loyalty among key shopper segments.
POSSIBLE ACTION
Develop compelling assortment story around protection of key secondary sizes while maximizing flavor variety.
