Common mistakes in forming a product range matrix

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Common mistakes in forming a product range matrix

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Here are some actions that marketers hotmail email list define as wrong, inappropriate, and even unacceptable in some situations:
Combining a very large list of names into one price group, especially if we are talking about goods at a medium and low price. The abundance of similar items at approximately the same cost will lead to a person wandering around the shelves for a long time and asking the sellers ten times which of the presented brands is better, and in the end, they will simply leave without buying. In order to make a choice, three to five brands are enough, and it is best to use those that are already familiar to most people.

Inclusion in one product line of several products that are almost indistinguishable from each other. They seem to be different, but have a similar appearance, packaging, grade, etc. Here the same thing will happen as in the previous example: the person will get confused and leave without buying.

Neglect of the data of the analysis of administrative and economic activity. Such studies should be conducted regularly, paying attention to the indicators:

sales dynamics, that is, the time it takes to sell a product and recoup the investment;

efficiency of warehouse operations;

how well the assortment cards are compiled (which merchandisers use as a guide when placing products on shelves);

profitability of certain product items.

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In the trading business, you should not rely on a superficial glance. Often it may seem that a product is actively bought, but the exact indicators indicate that it is completely unprofitable and has no prospects.

Compiling and adjusting a product matrix is ​​a serious matter that requires the use of accurate statistical data.


Program for automation of the use of product matrices
There are special information management systems, or so-called ERP systems, designed to build sales plans and resource allocation. They should be selected in accordance with the tasks of the retail facility, and they should also be modern and easy to use.

If the company's management does not consider it worthwhile to spend money on automation, purchasing managers and logisticians are forced to manually enter data into Excel tables, which is a colossal waste of time and effort. Plus, the human factor comes into play, which means that errors and inaccuracies appear in the tables.

But this will not happen if you use a general automated information system that collects accurate data at all levels in accordance with the company's objectives and according to pre-defined parameters.

Here it is important to train employees to correctly work with the numbers in the database, enter the necessary indicators, and competently apply the proposed methods. The task is to ensure that all data collected in the system are reliable and allow for effective management of the product matrix.

Program for automation of the use of product matrices

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Any movement of goods (both inside and outside the retail facility) must be taken into account by the information base used.

After you have studied the structure of your product range, set up the necessary business processes, it will become clear whether the system was chosen successfully and how suitable it is for solving the problems of your store, whether it fully reflects the nuances of product movement. This will allow you to analyze the product matrix of the product range as accurately as possible and improve your business performance.