SKU: what is it in trade and merchandising?
SKU in marketing is an identification code assigned to each product in the range. If products have the same parameters, look the same, belong to a certain brand or category, they are assigned the same code.
What is an SKU in trade in practice?
For example, take a batch of incandescent bulbs in an electrical goods shop's stockroom. Units of 60W and 100W have been ordered, but in all other respects the parameters are identical. Therefore it is useful to assign two identifiers to these different items. If, in addition, the shape of the bulbs is different, e.g. spherical and conical, four codes should be assigned.
There are no uniform standards for the assignment of an SKU code. Each shop determines for itself the rules for assigning the articles. The optimum classification involves listing a number of distinctive features of the item:
• abbreviated brand name
• packaging type
• weight etc.
SKU in merchandising
A set of analytical measures should be taken to increase revenue and stimulate shoppers. The output for retailers is data on the demand for a particular product, information on the popularity of individual items.
In merchandising, SCU is an item in the assortment used for the following research:
• ABC-analysis - division of marketed items and their classification according to the criterion of importance
• XYZ analysis - division into distinct groups, based on consumer needs and the accuracy of future demand forecasts
With the help of analytics, the merchandiser achieves the most efficient use of SKU. The resulting statistics help to identify groups of core and complementary products. This, in turn, influences the sales performance.
For example, take a batch of incandescent bulbs in an electrical goods shop's stockroom. Units of 60W and 100W have been ordered, but in all other respects the parameters are identical. Therefore it is useful to assign two identifiers to these different items. If, in addition, the shape of the bulbs is different, e.g. spherical and conical, four codes should be assigned.
There are no uniform standards for the assignment of an SKU code. Each shop determines for itself the rules for assigning the articles. The optimum classification involves listing a number of distinctive features of the item:
• abbreviated brand name
• packaging type
• weight etc.
SKU in merchandising
A set of analytical measures should be taken to increase revenue and stimulate shoppers. The output for retailers is data on the demand for a particular product, information on the popularity of individual items.
In merchandising, SCU is an item in the assortment used for the following research:
• ABC-analysis - division of marketed items and their classification according to the criterion of importance
• XYZ analysis - division into distinct groups, based on consumer needs and the accuracy of future demand forecasts
With the help of analytics, the merchandiser achieves the most efficient use of SKU. The resulting statistics help to identify groups of core and complementary products. This, in turn, influences the sales performance.
