Formation of product range: factors, principles, instructions
Posted: Sun Jan 19, 2025 7:06 am
Why is it important? Formation of the product range is one of the key stages of business operation. A correctly selected offer will ensure a stable influx of customers and high profits.
What does it depend on? Various factors influence the formation of the assortment: from the type of the enterprise itself to seasonality and demand. It is important to take into account all the nuances and make timely adjustments so that the profit from trade does not decrease.
The article explains:
The concept of product range
Types and zalo data package structure of product range
Factors influencing the formation of the product range
Principles of forming the product range
Methods of forming product range
Stages of assortment formation
Nuances of forming assortment in retail
Formation of assortment of goods in wholesale trade
Optimization of product range
Problems in forming the product range
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
The concept of product range
Before we look at the issues of forming the product range, let's look at the terminology. The concept of "range" is of French origin. Its literal translation sounds like "selection of goods by different types". You can find many definitions of this term.
As a rule, it is understood as a list of products with different prices, characteristics and completeness that the company offers. Each position of such a list must satisfy the specific needs of a potential buyer.
The concept of product range
The products included in this list, as well as their consumer properties, are determined based on the following characteristics of the range:
saturation: volumes of goods and services in a specific category of consumer demand;
depth: the presence of a wide range of products in a separate group;
compatibility: an indicator of the compatibility of several product groups that have similar selection criteria. In this case, we are usually talking about the retail assortment;
novelty: adding new items to the list alongside those that are already well known to consumers and popular.
The characteristics described above are assessed in the form of coefficients that demonstrate the level of approximation of the actual indicator to the planned one. By analyzing the quantitative expression of such properties in the process of forming a marketing strategy, specialists build a situational model that demonstrates the qualitative level of the company's assortment.
What does it depend on? Various factors influence the formation of the assortment: from the type of the enterprise itself to seasonality and demand. It is important to take into account all the nuances and make timely adjustments so that the profit from trade does not decrease.
The article explains:
The concept of product range
Types and zalo data package structure of product range
Factors influencing the formation of the product range
Principles of forming the product range
Methods of forming product range
Stages of assortment formation
Nuances of forming assortment in retail
Formation of assortment of goods in wholesale trade
Optimization of product range
Problems in forming the product range
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
The concept of product range
Before we look at the issues of forming the product range, let's look at the terminology. The concept of "range" is of French origin. Its literal translation sounds like "selection of goods by different types". You can find many definitions of this term.
As a rule, it is understood as a list of products with different prices, characteristics and completeness that the company offers. Each position of such a list must satisfy the specific needs of a potential buyer.
The concept of product range
The products included in this list, as well as their consumer properties, are determined based on the following characteristics of the range:
saturation: volumes of goods and services in a specific category of consumer demand;
depth: the presence of a wide range of products in a separate group;
compatibility: an indicator of the compatibility of several product groups that have similar selection criteria. In this case, we are usually talking about the retail assortment;
novelty: adding new items to the list alongside those that are already well known to consumers and popular.
The characteristics described above are assessed in the form of coefficients that demonstrate the level of approximation of the actual indicator to the planned one. By analyzing the quantitative expression of such properties in the process of forming a marketing strategy, specialists build a situational model that demonstrates the qualitative level of the company's assortment.