MARS Method for Defining Products & Linking Barcodes

In this presentation, the MARS method is introduced, focusing on defining products and linking barcodes for item relaunches. The process involves transaction data analysis, GTIN attributes, and handling relaunch problems. An intermediate product level is discussed to address complexity. The method balances stable and dynamic assortments, emphasizing homogeneity and continuity. Flow charts demonstrate the stratification and grouping of GTINs for effective product definition.

• MARS method
• Product definition
• GTIN attributes
• Barcodes
• Item relaunches

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Presentation Transcript

1. MARS: A method for defining products and linking barcodes of item relaunches Antonio Chessa CPI unit, Statistics Netherlands ag.chessa@cbs.nl 16thOttawa Group meeting Rio de Janeiro, 8-10 May 2019

2. Outline MARS: A new approach to product definition Illustration of the method (Excel) 2

3. Transaction data Variables Values Year + week 201502 GTIN (barcode) 5410013119500 GTIN description SPA REINE Package size 1 Package volume 1 L Item group code 343 Item group description Water uncarbonated Sales value (expenditure) 71,000 Sales quantity 100,000 3

4. GTIN and product variables/attributes Variables Values Year + week 201502 GTIN (barcode) 5410013119500 GTIN description (contains brand name) SPA REINE Package size 1 Package volume 1 L Item group code 343 Item group description Water uncarbonated Sales value (expenditure) 71,000 Sales quantity 100,000 4

5. GTINs as products: The relaunch problem OLD GTIN: 3600521740767 GTIN: 3600522004998 Elvive shampoo 2-in-1 multivitamine Volume: 250 ML Price week 38, 2011: 3,18 Price week 39, 2011: 2,00 Elvive shampoo 2-in-1 multivitamine Volume: 250 ML Not yet sold First price, week 39, 2011: 3,98 Clearance price Price after reintroduction 5

6. An intermediate product level is needed Elementary aggregate Example: Shampoo Price index Group GTINs by characteristics: Brand, package volume, etc. Homogeneous products Unit values GTINs GTINs for shampoo Transaction prices How to select these? 6

7. Product definition: MARS balances two factors Stable assortments GTINs Dynamic assortments: ? Homogeneity Continuity Homogeneity Continuity Tight Tight ? Broad Broad 7

8. Flow chart of MARS Take GTINs as separate products? GTIN2 GTIN4 GTIN3 GTIN1 Stratification schemes GTIN9 GTIN6 GTIN7 GTIN5 Partition into broader groups? GTIN8 GTIN11 GTIN10 GTIN12 GTIN2 GTIN4 GTIN3 GTIN1 GTIN9 GTIN6 GTIN7 GTIN5 GTIN8 GTIN11 Or define yet broader groups? GTIN10 Product homogeneity Product continuity GTIN12 GTIN2 GTIN4 GTIN3 GTIN1 GTIN9 GTIN6 GTIN7 GTIN5 GTIN8 GTIN11 GTIN10 GTIN12 Combine Rank schemes 8

9. Demo Example 1: MARS-QU_Bread.xlsm Example 2: MARS-QU_HairCare.xlsm 9