Ugh... Product. But making only one product or one service is wrong. This way you will lose most of your money.

And even an assortment of thousands of items may not save you. It is necessary to approach not only quantity, but also “quality”. You need to know not only how much, but also what.

Brick by brick

You need to create so many products in your company that all the needs of all your customers are covered. After all, if a person has a need, he will solve it, the only question is – will he do it with you or with a competitor?

Therefore, the formation of an assortment matrix is ​​a mandatory action from a marketing point of view.

What is it? An assortment or product matrix is ​​a list of all product names, the entire product range, approved for a specific point of sale, and compiled... So, stop! Too smart.

Product matrix– these are goods (services) in your business that you create or purchase taking into account various factors.

I think it's simpler and clearer this way. I’ll say more, you already have it, but it’s not a fact that it’s in perfect condition.

Our task for today is to figure out what you have and what you lack to increase sales. So put on your wetsuit, we're diving into the deep end.

While we are still in shallow water, let’s first determine what factors the product matrix is ​​built from.

After all, it depends not only on the area of ​​business. Everything is much more interesting. So, when shaping our products we must consider:

1. Market demand now;
2. Future trends;
3. Competitors (range, prices, advantages);
4. Features of the city, climate, living conditions;
5. Location of the point of sale;
6. Area or size of the company.

Based on the above data, an assortment matrix is ​​compiled for successful sales of goods and services.

Therefore, if you are going to do everything wisely, you need to start with analysis. This is not the fastest way, but it is the most effective.

You need to analyze not only the external market, but also yourself. If you are an experienced company, you need to look at current sales and their profitability.

If you are a company that is just gaining momentum, then you need to understand where you are moving.

At one time we were shaking up our services and realized that for some of them we were not associated in the market.

That is why sales on them were extremely low. As a result, we replaced some of the services. Moreover, we did such an analysis not only on the scale of the service, but on the scale of work formats in one service. But more on that later.

WE ARE ALREADY MORE THAN 29,000 people.
TURN ON

Divide into groups

In order for the product matrix to be optimal for all the needs of different target audiences, it must contain several product groups.

Their presence is mandatory; if something is missing, then consider yourself losing money.

Important. By default, I believe that you have a “Main” product group. These are your central products or services on which. Therefore, they are not on this list, but in your business they definitely are.

1. Goods locomotives

Your business must have driving products. Their goal is to attract buyers to your business, to show that your prices are really profitable, even lower than those of your competitor (allegedly).

And encourage people to make purchases. Literally one product category can solve all these issues.

We also call these goods “milk”, since everyone knows how much it costs. And if suddenly at the entrance to the store you see milk for 200 rubles, you will immediately turn around and leave.

Because decide that if milk is so expensive here, then everything else is expensive here too.

Another example, but from the other side. You see advertisements on billboards that the store is now selling a vacuum cleaner from a well-known brand at a very low price in the city.

You come to the store, and they tell you: before you buy this vacuum cleaner, please listen to another vacuum cleaner, it is a little more expensive, but much better.

In this case, due to the locomotive's product, you were attracted to the store, and earned money by selling a more expensive product. Naturally, some will only buy locomotive goods.

But there will also be those who will buy something in addition to it or take a more expensive offer.

Important. You can earn 0 rubles on a locomotive product, or perhaps even go into a small minus. But all this is provided that you upsell, transfer to another product or take into account.

2. Related

Selling an additional service or product is a nice thing for a seller. Everything is simple here. You must have related products to your main purchases.

As a rule, such up-sales have very high margins and some businesses rely solely on them.

Also a good example from catering, where we will definitely be asked to add syrup to coffee or cake to tea.

The sale of related products largely depends on the professionalism of the seller.

And to help them perform more successfully, add special phrases for upselling to this.

3. Status

The presence of a VIP product always excites the consciousness of the owners. Moreover, when I talk about VIP, this means a very, very expensive offer compared to the rest.

And even if you are a seller of premium goods or services, this also applies to you. There are obvious reasons for this:

1. There will always be someone who wants to buy the most expensive offer;
2. Compared to the expensive offers, everything else seems more affordable.

The first point is clear and obvious; there are always people who are accustomed to taking the best, considering cost an indicator of quality. Let's look at the second reason in more detail. And I’ll give you an example right away.

You scroll through the construction of houses and see three cost options: 800 rubles, 1, 2 million rubles. and 1.8 million rubles. Which one will you choose from this?

Most likely average, since most people think with the idea of ​​​​a golden mean (price = quality). Plus, it's obvious that the third option includes premium extras if it's so expensive.

Now let’s imagine a situation where a house for 3.2 million rubles is added to these options. What do you say now? Right.

Now the house costs 1.8 million rubles. It doesn’t look so expensive, and the first option is completely free. The effect is achieved, the mind is deceived.

4. Substitutes

Or they are also called . The same human need can be satisfied in different ways.

The task of substitutes is to satisfy the need of a person who came for another product.

That is, this is an alternative to his choice. But this is too clever, I’d better give examples: orange-tangerine, shorts-breeches, margarine-butter, Turkey-Egypt, curtains-tulle.

Marketers even have a belief (based on numbers): an increase in the price of one substitute product entails an increase in demand for another.

In addition, the more substitute products in your assortment, the easier it will be to convince a potential buyer to buy from you.

Continuing the idea of ​​the first paragraph, not all companies can find a substitute, and in some it is better not to do so.

In some cases, such products can reduce sales, since the client will begin to hesitate between choices and, as a result, will “spit” on the whole matter. The same story with the quantity of assortment (see video below).

5. Polar

I did not find a description of such a group of products in the stories of other specialists. More precisely, no one brought out these goods and services separately, but I think it was in vain. Therefore, I present to your attention the “Polar” products (the name was invented by us).

These are products that are either cheaper or more expensive than the main solution. They are necessary so that the client can choose something more profitable from our company or, on the contrary, something more worthy.

And our sellers could skillfully earn more (by switching to an expensive product) or not lose customers (by offering to purchase a more profitable product).

Moreover, do not confuse cheaper goods with locomotive goods. They have different tasks. The locomotive attracts the client and rarely makes a profit. And cheap polar, in addition to attracting, also brings profit to the company.

Also, do not confuse expensive polar with VIP. They also have different goals. With VIP, we make prices contrasting and radically different from the main offer.

And the expensive polar one differs from the main one by its low cost, so that the client has the opportunity (psychologically and financially) to switch to it.

6. Partner products

A very rare find in business is partner products. In Russia, it is customary to perceive all companies in the area as competitors. The perfect phrase is: “He who is not with us is against us.”

This position is firmly in the minds of all entrepreneurs, but we are quietly breaking it down with various materials. We have prepared a video for you, watch it below.

Now that you understand that partners are good and not evil, you can introduce your partners’ products.

The goal is to make a profit through the so-called affiliate program. Used in both offline and online points of sale.

For example, we made a mannequin at our client (a shoe store), which we dressed in our shoes and various products from partner companies.

Thus, we removed the headache of what to wear these shoes with, since the client immediately saw where to go to get things. The partners did the same.

7. Complementary

One way is to sell more units. We can immediately sell 2-3 items of one product.

But if this is not possible, then it is better to form a complex of several goods or services. Alternative words for this approach: packages, bundles, kits, selection.

To assemble a set of several products, you need to have complementary goods or services in your product matrix. These are those products that play an independent role, but become even more effective with another product.

In practice, we see this in cosmetic stores. Especially often during the holidays, where several care products are combined into one transparent film with a ribbon and bow.

Sometimes we can find products in such sets that are not sold separately (but this is quite rare).

You can put “Additional” into a separate product matrix. But, as a rule, they are already present in products and are “Main” or “Related”.

The services may not have them, so you will have to think carefully before implementing them.

Lifehack. You can create bundles of goods and services. This is not a traditional solution, but it looks very interesting.

Briefly about the main thing

Depending on a number of factors, the product matrix may vary. And an experienced owner should correct it in time.

But do not forget that the variety of product categories described above affects the company’s goal, as it gives freedom of choice to the potential buyer, which is also not always good.

Thus, building a product matrix must be a thoughtful and verified process.

The store’s product range should be organized not only on the counter or in the website catalog, but also in the marketer’s head. For convenient systematization of goods offered for sale, experts recommend drawing up assortment matrices. Matrices help you choose from an endless variety of product offerings only what you need, and do this in a timely and systematic manner. What is a matrix?

An assortment matrix or product matrix is ​​a list of all product items divided into categories and groups. Working without an assortment matrix can be compared to going to a hypermarket where there are no signs, all the products are mixed and baby food is on the shelf next to the polish. Not very convenient.

Compiling a product matrix will require the time and effort of marketers, category managers, and management staff. But it's worth it. The process of creating an assortment matrix includes several preparatory stages.

1. Determination of the format, concept and features of the store positioning

Before moving on to drawing up an assortment matrix, it is necessary to develop in detail the concept of the enterprise, to understand what, to whom and where you will sell. Companies often do things differently: they randomly purchase goods, and then look at who comes to them and what they buy. In conditions of fierce market competition, this is an unsuccessful approach leading to losses.

You need to start with the concept and positioning. At this stage, determine:

• Number of floors, store size;
• Format (discounter, supermarket, hypermarket, etc.);
• Location (distance from the center, accessibility to customers, presence of competitors);
• Socio-economic features of the location area (who lives here - students, pensioners, businessmen or families with children, what they buy).

A successful business must be customer-focused, so as part of the concept and positioning process, it can be helpful to know what future customers would like your store to look like. To do this, our resource has a questionnaire template for collecting ideas and suggestions.

When you decide on an area to open a new store, be sure to interview the residents of that area. This way you can find out where they prefer to go shopping and what dictates their choice. This will help determine the exact location of your outlet. The advantage of surveying at this stage is that at the same time you will get to know your competitors and be able to roughly determine the target audience.

2. Consumer demand research and consumer segmentation

You already have an idea of ​​who your client is, it’s time to segment consumers. There are regular customers, there are seasonal ones, and there are those who turn out to be casual visitors. You should not target your offer to everyone, you need to focus only on regular visitors, they are the ones who will make sales for you.

3. Product matrix: comparison of your own assortment with the competitor’s assortment

You also need to know who you are competing with. Then study their product range, prices, advantages and disadvantages. This is exactly what you should start from when forming an assortment matrix and pricing policy. You must offer people what they are currently missing.

For example, if there are many retail outlets around with a large assortment, but each category does not contain something exclusive, it makes sense to make the assortment of your store not so wide or even leave only a few product categories, but deepen them and specialize in them. Let your product matrix contain something unique in each product group, for example, a rare foreign product.

Often competitors are in completely different areas. For example, if you sell travel packages, you need to show the client that it is better to spend money on a beautiful trip than on buying a sofa at the furniture store next door.

You can also study the competitive environment by surveying potential customers.

4. Determination of the main product groups of the assortment matrix

Now you need to highlight the main groups of goods in the matrix. Choose products that will be most relevant in the area, your target audience and that will make your offer better than your competitors.

Let's say we are talking about a grocery store that is located next to the campus. The assortment in neighboring stores is wide, but the prices are not at all student prices. To attract customers, your assortment should include products that students often buy, and at competitive prices. Most likely, the assortment of the product matrix will include ready-made meals, salads, baked goods, chips, sausages - everything that is satisfying, tasty, inexpensive and does not require preparation.

5. Deepening the product range

Next, you detail each product category of the matrix, highlighting subcategories. An important point is the choice of brands. Focus on prices and consumer demand.

So, you have decided on the concept, format and location of the store, segmented the market, identified the main product groups of the matrix, detailed them and selected brands. All that remains is to carry out the final classification of the product positions of the matrix, and you can begin to compile the assortment matrix!

• unique - create a favorable image and memorability of the store, diversify the assortment, and belong to the category of impulse purchases;
• priority - ensure profitability and attract the main flow of buyers;
• basic - ensure high turnover of funds and attract a flow of customers;
• periodic (seasonal) - designed to update the assortment, attract and retain customers;
• convenient - ensure a constant flow of customers by building consumer loyalty.

In its finished form, the assortment matrix is ​​a table that indicates: product group, product category and subcategory, local code, position name, supplier, category manager, role of the product, whether it is included in the assortment minimum (mandatory part of the assortment, goods in short supply unacceptable).

A small fragment of a table for our student store

The assortment matrix will simplify working with a large amount of data. Thanks to it, you will have up-to-date information about products before your eyes, you will be able to plan updating and improving your assortment, and change product positions depending on consumer preferences. For example, if demand for corn salad declines, you could move it from the basic product category to the periodic category or replace it with a new product item.

Here you can conduct all types of marketing research in just 1-2 days

The point of sale can be positioned as a store with the widest possible range or the lowest prices, a boutique with premium branded goods, etc.

Conducting demand research and consumer segmentation

To identify exactly your buyer and understand his interests, fears and purchase motivations, segmentation is carried out. To do this, all consumers are divided into different groups, united by certain characteristics. The choice of parameters for classification is determined taking into account the features, advantages and cost of the product, geographic coverage, and format of the outlet.

Consumer segmentation can be carried out by gender, age, income level, type of occupation, social status, place of residence, interests, behavioral and other factors. Segmentation can be carried out for a store or chain of stores, as well as for different product groups.

For example, customer segmentation is carried out for a chain of construction stores. To promote this direction, we can distinguish a group of corporate clients (construction companies, construction teams providing repair and finishing services, etc.) and individual buyers (purchasing building materials for self-repair of their home).

Each of these groups can be divided into subgroups. Next, demand is studied by studying the number and volume of purchases made by different groups (such data can be obtained by studying competitors or analyzing your own sales for previous periods). If the study reveals a clear advantage for corporate clients in terms of volume and quantity of purchases, then when forming the assortment matrix, emphasis should be placed on professional goods and equipment.

Segmentation is carried out in several stages:

1. Definition of segmentation criteria. Selecting the most important parameters from the maximum list of possible characteristics, allowing you to divide all consumers into homogeneous groups.
2. Using the selected segmentation characteristics, you need to identify loyal and disloyal customers. This division will allow us to analyze the high and low loyalty of the target audience in the context of social, demographic, behavioral and other factors.
3. Drawing up a portrait of the target consumer of your competitors. You can analyze the target consumers of those competitors whose products are cheaper than those whose prices are at the same level as yours and those whose prices are much higher.
4. Analysis of differences and selection of important segmentation criteria. It is necessary to study all the resulting groups and identify the characteristics by which they differ. The most important of them are the reason for the purchase, switching to another brand, or abandonment of the product. These behavioral and psychographic characteristics tend to be the most significant, while demographics and geography are considered more descriptive characteristics that enable planning.
5. Dividing potential buyers into segments and providing a detailed description of each of them. Each segment must be described by social, demographic and geographic characteristics, behavioral (places and frequency of purchases, important properties of goods, number of brands purchased, etc.) and psychographic factors (life values, priorities, motivation for purchasing, etc.).
6. Assessment of the potential of each segment (approximate number and volume of purchases made by different consumer groups).
7. Selection of target market segments. One or two target groups with the greatest potential are selected, and it is taking into account their characteristics that a further promotion strategy is formed in a particular store.

Sample product matrix for competitive analysis

A comparison of your own assortment with the list of products from a competitor is carried out to identify the strengths and weaknesses of competitors and your company. This type of research begins with identifying the main competitors (3-4 large companies) offering similar products or substitute products. Next, an analysis of the product range of various competitive companies is carried out, their list of services, advantages.

To compare the product policies of the main competitors, a product matrix is ​​compiled for each individual company, indicating product range groups, grouped by manufacturers, models, quality, prices and other characteristics.

The data obtained is used for optimization when creating your own assortment. For example, in the process of competitive analysis it was revealed that most of them offer a very wide selection of product groups, but at the same time they are all represented only by the most popular items. In this case, you can choose a tactic of maximum depth within a product group (increasing the choice of models, volume, color and other characteristics of a particular product).

Selection of the main product groups of the product network

An assortment or product matrix is ​​a complete list of goods presented at the point of sale. Product content must be formed before the store opens, taking into account its format, location, features and preferences of the target audience. Spontaneous formation of an assortment, focused on current demand or copied from competitors, without analyzing costs and each product group, can lead to losses and ruin.

In addition to the preliminary compilation of a product matrix before opening a retail outlet, it is also necessary to update such a list at least once every six months. Ideally, this task should be performed by a group of specialists: a category manager or supplier who knows suppliers and has information about what is sold and in what volume, as well as a marketer and commercial director.

Features and stages of compiling an assortment matrix:

The product matrix is ​​adjusted based on an analysis of sales for the previous period (the number of goods sold, total profit, and profitability by position are taken into account). A retail outlet's product database is formed indicating all key parameters - assigned internal code, name, brand, purchase and retail price, stock balance, etc.

The entire assortment can also be divided into price categories (usually, the division occurs into cheap, medium and expensive segments).

Deepening the product range

In order to satisfy the needs of the target audience to the maximum, a marketer (commercial director or other) of a retail chain or individual store must constantly work to optimize product content.

By choosing a strategy to increase the number of products within one product group, you can achieve a competitive advantage by offering those products that competitors cannot offer. This is called deepening the range (differentiation).

This policy allows us to offer target consumers product variations that best suit their needs. An in-depth assortment is relevant for the sale of adult and children's clothing and shoes (various colors and sizes are offered), furniture, mobile phones and other consumer goods.

All activities related to managing the assortment of a chain of stores or a specific point of sale are aimed at several goals - increasing retail brand awareness and loyalty of the target audience, increasing sales volumes and business profitability. Long-term goals also include increasing competitiveness and increasing market share. To achieve your goals, you need to choose the right store format, formulate a sales concept, and create a product matrix taking into account demand and the competitive environment.

Write your question in the form below

Hello, Ladies and Gentlemen! The topic of our lesson is "ASSORTED MATRIX" .

“Assortment matrix - what is it?”

Let's start by answering this question:

ASSORTMENT MATRIX - this is the optimal set of product items in your product catalog that you are currently trading, broken down by product levels, categories and characteristics.

An effective assortment matrix is ​​a MUST :

• Maximize sales, profit, battery, market share— depending on what goals your business has;
• Fully meet customer expectations, and for product groups with the “Develop” strategy exceeds these desires;
• Maintain optimal production cycle and inventory within the given standards, minimizing illiquid, excess and zero balances of goods.

So the funniest thing is that the assortment matrix in the form of standard excel tables, which numerous textbooks suggest for us, prof. websites and miracle consultants are complete bullshit and profanity.
And why? Yes, because the Assortment Matrix is ​​not an Egyptian pyramid that has stood in one place for four thousand years.

Once and for all you will be inspired by the following. The assortment matrix is ​​not a constant sign, it is a symbol of infinity. It's a super dynamic thing that can change every day.
And type it into Excel, sign it with the boss, and then collect “Acquainted” signatures from buyers and sales people, a rare stupidity and a stupid waste of time.

But we immediately have a second question.

How to manage and control this very matrix if it changes every day? And what should it actually look like?

My friends, in order for the assortment matrix to be formed quickly and automatically, buyers and salespeople must constantly answer three key questions:
Why are we selling this product?
What product do we NOT need?
What product do we need?

“How do you make your sculptures?”- they asked Michelangelo.
“I take a stone and cut off everything unnecessary”- he answered.

“How to make your own Assortment Matrix?” - you ask.
“Take your list of products and cut off everything that is unnecessary... and then add what your customers are missing.”, - I will answer.

However, no. I won't just answer. I will give you my personal instrument along with instructions.

GROUP DESCRIPTION OF GOODS

I’ll start the demo with my favorite construction and distribution example, although I will periodically throw up options from other product groups in order to convince you of the applicability of my method for any product business.

And the first thing we need is to divide our assortment into larger groups and subgroups. These are links to tutorials where I showed how to do this:

I won't repeat myself. The main thing is that at the end you can build a report like this with sales for each group and subgroup.

Grouping of goods for the assortment matrix

Read, understand. And we get to the point. So.

Step 1. For groups with a strategy KILL, we have an extremely simple plan of action. We we're taking it out of stock , we sell off the remaining goods and forget about it until the next strategic session.

Step 2. In the second step we we describe the products from each group by subgroups in the hierarchy and logically we check each of the subgroups for compliance with the market , so as not to engage in trade schizophrenia, offering beach umbrellas on the shores of the Arctic Ocean.

If a subgroup for some reason does not correspond to the market, it follows the group with the Kill strategy. We are removing it from the range, and giving the remaining subgroups the green light.

Step 3. On the third step we distribute goods by Categories, build Category Maps and compare them with market category maps. And this is where our paths diverge. Because a group with a Develop strategy and a Hold strategy is black and white, the yin and yang of our assortment.

The fact is that product groups with a strategy DEVELOP should be few, because within them you are obliged to form the widest and deepest assortment possible. It is very important. When we begin to develop a product group, we actually tell our clients that we are strong specialists in it. And if you position yourself as a specialist in a product group, be so kind as to do everything according to Feng Shui. Satisfy all possible needs of your clients to the maximum!

Therefore, the principles of forming the Assortment Matrix for groups on Development will be radically different from the principles for groups with a Hold strategy.

If you are working with a Developing Group and see an assortment hole on its category map, then be so kind as to find a supplier, puzzle the technologist and enter the missing product in the price list, because it must be there.

In groups with strategy HOLD everything is upside down. For these categories, we must carry out a very strict selection and include only TOP categories in our price list.

TOP PRODUCT CATEGORIES

TOP CATEGORIES — These are categories that, according to the results of ABC analysis, were assigned group A according to two indicators “Sales volume in rubles” and “Number of stamped documents”.

In this case, ABC analysis should be done within each specific group. Below is an example of an ABC analysis for the Electricity Supply Group, which highlights the TOP categories of this group.

If we hold a group, we are obliged to work only with the TOP categories from this group, with its assorted fat and nothing more.

In my example, I DO NOT claim to be an expert in this group, which means my client will forgive the absence of camping lanterns or spotlights in my price list, but if there are no 100-watt light bulbs or batteries, he will definitely be stressed.

Naturally, our main question is:
“How do you know which categories are TOP?”

To be honest, there are few methods and they are all on the verge of a foul.

Well, if it doesn’t work, then do it this way.

1. Collect as much information as possible about the products of this group, build a hierarchy of all its subgroups, and draw up a market map of the categories.
2. And then use your head, brainstorm with your fighters and select the top categories to suit your taste and color.
3. Enter them into the assortment, and then, using the “Assortment Management” module of the TopControl system, automatically rotate them until you determine the best-selling ones.

Here are a few words about how ROBOTS will save us when managing the assortment matrix.

The fact is that every night our robot merchandising independently analyzes commercial indicators for each category in the context of each product and assigns them statuses - Archive, No sales, Losers, To order, Working, Matrix .

And if you want to have an effective assortment matrix, then once a week or once a month, it depends on the turnover of your goods, generate a report like this on Product Status. And apply three standard solutions to them.

With goods Matrix, Worker, To order We continue Work .

It’s a little more complicated with goods that have been assigned status by a robot merchandising expert - No Sales or Losers .

If the USP of the product Minimum price or wow product , We continue Work with it, if the product has a USP Functionality or Characteristics We We change it to analogue.

If the USP of the product is Brand, image, fashion or For assortment boldly We kill and clear the warehouse of its remains as quickly as possible.

It is clear that if your assortment consists of 10 positions in which you understand better than Kasparov in chess, or you stupidly don’t care about your business because oil was found in your yard last week, forget about everything I just told you and Don’t bother with Assortment matrices.

But if you have a decent price list, don’t have your own well, and have a burning desire and ambition to have more than a Hyundai Solaris at the entrance and French fries from McDonald’s,...

Learn to Manage Products Effectively.

Because the first Pi of marketing is not sales, promotion and everything else. The first Pi of marketing is PRODUCT! Thank you for your attention, good luck and great sales everyone.

To be continued…Video version of the post

Building a store’s assortment matrix is ​​the most important element of a store’s assortment policy. Why is an assortment matrix needed, in accordance with what is it formed, what methods exist for analyzing the product range, when does this assortment need to be expanded - these and other topics should be the subject of discussion by the owners of large shopping centers or small retail outlets.

Where does the creation of a store’s product matrix begin?

In some stores, the filling of the assortment of goods occurs haphazardly. For example, the owner of a trading business pays attention to a product that sells best and decides to increase its supply. Or, observing the increase in profits from competitors, he orders additional quantities of a product that “goes well” from his neighbors. And then he starts playing with prices. Often this happens bypassing research for “additional profit”. Costs rise, profits decline. The assortment matrix should be formed by analyzing many components.

The next step in creating an assortment of goods is an analysis of the consumer group, their requests and needs. This is also done in order to, by analyzing different groups of clients, focus on “your consumer” and, as a result, satisfy his needs for a particular product.”

Changes to the product matrix must take place at least twice a year. General requirements for the assortment must remain unchanged, but specific changes are necessary. Once every six months, it is necessary to analyze the existing assortment, monitor customer purchases, take into account sales trends and make changes to the product matrix.

Look at changes in the general market, pay attention to the range of competing companies, compare customer flows, update your pricing policy. You need to not only maintain the interest of regular customers, but also attract new ones.

How to create a product matrix?

We begin forming a product range by identifying product groups. Next, you should detail each position down to a specific product. At the same time, do not forget to take into account the needs of customers. Set a price based on the average price and taking into account the profit percentage for the product. Provide similar prices for different product groups.

Study the supplier market. Analyze and collect information about the quality of the products provided, partnership policies, and business rules.

The product matrix includes the following components:

- name of the product group (for example, bakery products)
- name of the product category (for example, hearth bread, Moscow bun)
- designation of the price category (premium, medium, economy)
- establishing the product code;
- definition of a trademark;
- designation of packaging, packing;
- name of the commodity item;
- information about the supplier;
- information about the employee responsible for this category;
- a note indicating whether this product is included in the minimum assortment.

A large trading enterprise has a product matrix containing a large number of products. Medium and small sellers have a smaller matrix. How detailed your matrix will be depends on your desire and capabilities. Make it convenient for constant use.

When representing your brands in the region, take into account the specifics of the stores. Of course, it is very convenient when you work with one group of goods in your country. It’s easy to build logistics and order products from one supplier. Stores located in different locations may have a different product matrix. After all, the formation of the matrix depends on a specific circle of buyers and this component cannot be ignored.

How to analyze a store's assortment matrix?

When working on a minimum assortment composition, you need to evaluate the role of each product in a given food basket. The assortment matrix includes locomotive goods, substitute goods (substitutes), additional (related) goods and status goods.

Locomotive goods
These are the products that form the basis of the assortment matrix. The most “popular” products, sometimes with a minimal markup. They work more to attract customers than to make a profit. You may have several such locomotive groups. Keep in mind that here we are not talking about the most necessary, important goods, but about goods that have visual appeal.

Substitute goods
This group of goods includes products of two categories: more expensive and profitable, or cheaper, but high-margin. The main task is to make the buyer pay attention to them instead of the locomotive goods. Therefore, these two groups are often placed side by side so that buyers can compare and choose products that are more profitable for you.

Related products
As a rule, these are accessories and additional goods that are purchased “in addition” to the main purchase. This group includes services provided upon purchase, for example, setting up equipment. The main goal is to increase the average check.

Status products
The inclusion of status goods in the assortment matrix has more of an image component - sales in this group are the smallest, as is profit. But they are the ones who create a feeling of wide choice among buyers.

Buyers can also be classified into three categories:
- Those who are looking for a store with low prices;
- Those who are most interested in the price/quality ratio;
- Those who are looking for a product that will satisfy their needs as much as possible, regardless of price. It is this group that status products are aimed at.

Use a program to create a store assortment matrix. Consider our recommendations. After analyzing demand reports and the state of the warehouse, you will understand how to adjust the store’s product line.