Quality product mix strategies
I’m going to open a store. I can’t determine how to organize store marketing? What will be more profitable for me: narrow specialization, many different products or something in between? It is clear that the most common strategies for a product range are a narrow range and a wide range. But which one is better?
Effective Product Range Strategies
When choosing a product strategy, several factors must be kept in mind. The first and most important factor is market saturation. A strategy of wide specialization gives maximum effect in conditions of deficit. In such conditions, people grab everything like hot cakes, which means that in order to make maximum sales, you need to have a variety of goods.
If there is no shortage, then people are very picky, ask a lot of questions and in order to sell a product, you need to know the qualitative answer to each of them. If there is a very large assortment, then it is unlikely that it will be possible to answer all the questions qualitatively. If you give the buyer a low-quality answer, then he most likely will not make the purchase and go looking for a place where he will be given a high-quality answer to the question.
The second factor in choosing a product mix strategy is the store format. If you open a hypermarket, this already assumes a wide range, because people come to the hypermarket precisely in order to buy more and more. By this factor, a priority hypermarket is chosen, which will be visited most often. If we are not talking about a hypermarket, then a wide assortment will harm rather than help.
The third factor in choosing a product mix strategy is the location of the store relative to where customers live
People will be overwhelmed with information, they will have a conflict of motivation and it will be difficult for them to choose something to buy. For ordinary stores, it is advisable to focus on a narrow range and have a product line that covers the entire range of needs of a particular type.
The third factor in choosing a product mix strategy is the location of the store relative to where customers live. You need to understand what your target audience will be. If these are people from nearby houses, then they will most likely come to you for goods of impulsive demand, i.e. for such goods, the purchase of which is not planned in advance.
Accordingly, it is necessary to have the widest possible assortment of such goods, and here a wide assortment strategy is applied. If your target audience is people who are ready to go specifically for you for something, then that’s why you should visit you and you should have one, and this, as a rule, is a rather narrow assortment of goods, therefore a narrow assortment strategy is applied here.
As you can see, the choice of product strategy depends on a large number of factors. Some of them are described above, but these are not all factors. In fact, there are a lot of factors. Therefore, in order to choose the most effective strategy, you need to conduct a situational analysis.
Situational analysis involves the compilation of a list of all possible factors and their analysis both separately and in connection with each other. To do all this – let’s say so for an amateur. Someone likes to do this, while someone does not. But this must be done, because the future of the store is at stake, and therefore your future.