Post by nurnobisorker13 on Oct 28, 2024 8:44:00 GMT
Running a business is often associated with plans, hopes and expectations of big profits, but in order for them to be realized, it is necessary to understand who, what and how to sell. A product matrix helps to simplify the work: with its help it is convenient to track what product items are in the assortment, what should be added, and what product is time to withdraw. Below we will tell in detail what an assortment matrix is, how to create it and what role the product list plays for online stores and small retail chains.
Contents hide
1) What is a product matrix?
2) Rules for creating an assortment matrix
2.1) What products should always be in stock?
3) How to create a product matrix
4) How often should the assortment matrix be adjusted?
5) Possible errors
6) Conclusion
What is a product matrix?
The matrix of services or goods is a complete list of everything that a store can offer its customers. As a rule, for simplicity and convenience, it is designed as a table.
The matrix is convenient for classifying goods according to specially defined criteria; it is an optional document of strict reporting, therefore it is compiled in any form in order to clearly see the full range and evaluate it according to criteria such as:
does the product range have competitive advantages, including in terms of retail price;
does it cover all customer needs;
does it allow us to minimize risks due bulk telegram blast to possible supply disruptions?
To solve all these problems, a list of products is made before the start of sales at the stage of studying the target audience and competitors, when:
the client's profile and solvency are determined;
all competitive offers are compared;
the price is formed;
a list of product items for future trade is compiled.
The final step in this sequence of actions is to compile a complete list of products. This is the beginning of creating an assortment matrix.
The most understandable example of a product matrix is a table, for example in Google, where all the products presented are divided into categories. For example, for a home appliance store, these would be: computers and gadgets, kitchen appliances, car products, dishes, accessories. In turn, each category is divided into subcategories, for example, lids, thermoses, thermoses, frying pans, French presses, teapots.
In addition to the product category, the list includes:
price;
date of receipt;
best before date;
Supplier contacts;
warehouse balances.
Not only managers, but also third-party buyers can work with the product matrix to understand how many products are in the warehouse.
Rules for creating an assortment matrix
Analyze competitors, target audience and platforms - before launching an online store on a marketplace, you should find out what is currently being sold on the platform. Then it is important to decide which products and in which segment it is more profitable to sell. And only then create an assortment matrix, based on the information received.
Focus on the store's positioning - it is better to create a product matrix taking into account the target audience and price segment. For example, if it is a sports store, then you need to decide what product items will be presented in it: for professional athletes, for healthy lifestyle enthusiasts or for children. Then you need to decide what will be sold: sports equipment, clothing for active recreation, dietary supplements, accessories. Positioning allows you to determine the target audience and select products that are interesting specifically for this group of people.
Monitor the balance of the matrix - if the store's assortment includes 15 products for women and men, 3 for children, 1 water bottle for animals and something for the home, then the buyer will most likely not understand this strange list, and he will go to another seller, where the assortment is more consistent.
What products should always be in stock?
Basic group (locomotive goods) - customers definitely expect to see them. For office supply stores, these are usually notebooks, paper, writing instruments; for a pet store - feeders, trays, animal feed. The main role of the "locomotive" is that the client comes to the store specifically for this category of goods;
related products - they are purchased in addition to the main items: vitamins for animals, mats for bowls. Companion products are necessary to increase profits through additional sales;
premium goods – create a price contrast with the basic group, stimulate demand, for example, in a bookstore these are encyclopedias, atlases, gift editions. Their task is to shade the cost of “locomotive goods” and bring in additional income through the sale of more expensive items;
substitute products - for example, a customer came to the store for tangerines, but they ran out. A citrus lover would most likely buy oranges so as not to leave with an empty basket. Substitute products help maintain demand and keep sales;
product items that competitors do not have. Moreover, the differences can be quite insignificant, for example, a round box instead of a square one.
Increase your sales with Mokka
How to create a product matrix
In order for a business to be profitable, it is necessary to determine in advance:
categories and characteristics of goods - what exactly will be sold;
needs of the target audience;
what and at what cost are stores with a similar product range matrix selling;
store format - a warehouse store, a showroom or a retail outlet have different matrices;
price segment - what class of products will be sold.
So, we have a certain list of products that we plan to sell in our online store. We transfer all product items to a table and distribute them by categories and groups. You can also add suppliers to the list to know what product and where we will order from. It is also useful to indicate the product status in the matrix.
Contents hide
1) What is a product matrix?
2) Rules for creating an assortment matrix
2.1) What products should always be in stock?
3) How to create a product matrix
4) How often should the assortment matrix be adjusted?
5) Possible errors
6) Conclusion
What is a product matrix?
The matrix of services or goods is a complete list of everything that a store can offer its customers. As a rule, for simplicity and convenience, it is designed as a table.
The matrix is convenient for classifying goods according to specially defined criteria; it is an optional document of strict reporting, therefore it is compiled in any form in order to clearly see the full range and evaluate it according to criteria such as:
does the product range have competitive advantages, including in terms of retail price;
does it cover all customer needs;
does it allow us to minimize risks due bulk telegram blast to possible supply disruptions?
To solve all these problems, a list of products is made before the start of sales at the stage of studying the target audience and competitors, when:
the client's profile and solvency are determined;
all competitive offers are compared;
the price is formed;
a list of product items for future trade is compiled.
The final step in this sequence of actions is to compile a complete list of products. This is the beginning of creating an assortment matrix.
The most understandable example of a product matrix is a table, for example in Google, where all the products presented are divided into categories. For example, for a home appliance store, these would be: computers and gadgets, kitchen appliances, car products, dishes, accessories. In turn, each category is divided into subcategories, for example, lids, thermoses, thermoses, frying pans, French presses, teapots.
In addition to the product category, the list includes:
price;
date of receipt;
best before date;
Supplier contacts;
warehouse balances.
Not only managers, but also third-party buyers can work with the product matrix to understand how many products are in the warehouse.
Rules for creating an assortment matrix
Analyze competitors, target audience and platforms - before launching an online store on a marketplace, you should find out what is currently being sold on the platform. Then it is important to decide which products and in which segment it is more profitable to sell. And only then create an assortment matrix, based on the information received.
Focus on the store's positioning - it is better to create a product matrix taking into account the target audience and price segment. For example, if it is a sports store, then you need to decide what product items will be presented in it: for professional athletes, for healthy lifestyle enthusiasts or for children. Then you need to decide what will be sold: sports equipment, clothing for active recreation, dietary supplements, accessories. Positioning allows you to determine the target audience and select products that are interesting specifically for this group of people.
Monitor the balance of the matrix - if the store's assortment includes 15 products for women and men, 3 for children, 1 water bottle for animals and something for the home, then the buyer will most likely not understand this strange list, and he will go to another seller, where the assortment is more consistent.
What products should always be in stock?
Basic group (locomotive goods) - customers definitely expect to see them. For office supply stores, these are usually notebooks, paper, writing instruments; for a pet store - feeders, trays, animal feed. The main role of the "locomotive" is that the client comes to the store specifically for this category of goods;
related products - they are purchased in addition to the main items: vitamins for animals, mats for bowls. Companion products are necessary to increase profits through additional sales;
premium goods – create a price contrast with the basic group, stimulate demand, for example, in a bookstore these are encyclopedias, atlases, gift editions. Their task is to shade the cost of “locomotive goods” and bring in additional income through the sale of more expensive items;
substitute products - for example, a customer came to the store for tangerines, but they ran out. A citrus lover would most likely buy oranges so as not to leave with an empty basket. Substitute products help maintain demand and keep sales;
product items that competitors do not have. Moreover, the differences can be quite insignificant, for example, a round box instead of a square one.
Increase your sales with Mokka
How to create a product matrix
In order for a business to be profitable, it is necessary to determine in advance:
categories and characteristics of goods - what exactly will be sold;
needs of the target audience;
what and at what cost are stores with a similar product range matrix selling;
store format - a warehouse store, a showroom or a retail outlet have different matrices;
price segment - what class of products will be sold.
So, we have a certain list of products that we plan to sell in our online store. We transfer all product items to a table and distribute them by categories and groups. You can also add suppliers to the list to know what product and where we will order from. It is also useful to indicate the product status in the matrix.