Analysis of the product matrix by depth and width

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Depth is understood as the number of items in the selected product group, and it is this indicator that determines the size of revenue. If the main product of a women's clothing store is business suits (and 65% of the income comes from their sale), then the product matrix should include more diverse options of these products (different in color, material, sets with trousers and skirts).

The range can be expanded by hotmail email list means of related products. Returning to the example with suits, blouses, shirts, and accessories will be an excellent addition.

It would be useful to evaluate such an indicator as the balance of the assortment, because each product group performs its own functions and has an uneven impact on the choice of customers.

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And I know that such leaps are always the result of painstaking work in five areas:

Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.

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In this regard, the following characteristics can be applied to the products included in the matrix (in order to change its width and depth):

Rare products . They are introduced into the assortment to support the image and stylistic direction of the store. These items are rarely bought, so to speak, spontaneous purchases.

Main products . More than half of the profit comes from their sale. This is the "locomotive".

Basic products. Those that sell faster than others, their revenue is approximately 40-60%.

Seasonal. Their range is very wide, and they provide the greatest profit precisely in certain seasons.

Comfortable goods. As a rule, these are items that the buyer puts in the basket "at the same time" as something else. Practice shows, for example, that 70% of people in shoe stores are happy to buy hosiery, tights, leggings, spare laces, insoles, etc.

During the operation of a retail facility, its product matrix will show which of these categories are most in demand.


Compilation of a product matrix in competitive analysis
An analysis of the product units included in the competitor's matrix is ​​necessary in order to more clearly see the advantages and weaknesses of both your own and those of competing firms.

Here's what you'll need to do to conduct such a study:

Identify your main competitors. Usually this is three to five stores.

Study their range and identify its strengths and weaknesses.

View prices for product categories similar to yours and compare with your own price range.

Study the list of additional services of competitors.

Predict the likelihood of new competitors (and which ones) appearing in the near future, as well as in the future (near and distant).

For example, you have studied the product matrix of competitor stores and determined that, yes, their assortment is quite diverse and includes many items. But they are all filled with the most common consumer goods, but there are essentially no exclusive offers.
Then your advantage may not be the variety of the assortment, but its depth. Let it be literally several product groups (or even one or two), but fill each of them thoroughly in depth.

When conducting a competitive analysis, pay attention not only to stores similar to yours, but also to other market participants whose work is also aimed at finding clients and receiving orders from them. Your persuasiveness largely determines whether a client will buy, for example, your furniture or spend money on travel packages at a travel agency.

As part of the competitive analysis, a product range matrix is ​​formed for each competing company, where all product items are distributed into groups taking into account the manufacturer, cost, quality and other indicators.