Assortment Dominance Matrix / Goldmine analysis

Question 1

Assortment Dominance Matrix

axis

Answer 1

horizontal: small market - large market

vertical: high - low market share

Question 2

Assortment Dominance Matrix

quadrants

Answer 2

upper right:
cherish

upper left:
reputation

lower rights:
opportunities

lower left:
question marks

Question 3

Dynamic ADM

Answer 3

We divide all the outcomes of the second ADM by the outcomes of the first ADM and we place the numbers found per department in a matrix, whose cross-axis is 100/100. If all market shares would have remained exactly the same in both years and if all markets would have remained constant in size, all numbers found would end up exactly in the point 100/100.

Question 4

Goldmine analysis

axis

Answer 4

horizontal: profit

vertical: dominance

Question 5

Goldmine analysis

quadrants

Answer 5

upper right:
goldmines

upper left:
volume makers

lower right:
profit makers

lower left:
concerns

Question 6

Suppose we want to improve profitability from the assortment mix, focus:

Answer 6

1. Profit makers: strengthening these groups contributes much more profit development.
2. Goldmines: high sales and higher than average profitability. Further expanding sales will be more difficult than with the profit makers. But it contributes much more to profit development.
3. Volume makers: from a profitability pov, you should work on margin improvement in these assortment groups. May be very difficult because these are volume groups in probably very competitive submarkets (hence the low profitability)
4. Concerns: in order to improve profitability you should clean up these groups from a conceptual pov, is more profitable than further expansion.

Question 7

Fair-share analyses

Answer 7

In those cases where the market size is stable over time and there are no great dynamics in the market development, we use a simpler method:

We measure where we compare our own performance with a predetermined standard (a benchmark). The result is an index compared to the norm. If the index…

Fair share > 100% or 1: performing above the predetermined benchmark

Fair share < 100% or 1: performing below the predetermined benchmark