What is the optimal product mix for a new store launch?

1 What is product mix?

Product mix is the combination of products and services that a store sells to its customers. It includes four dimensions: width, length, depth, and consistency. Width refers to the number of product lines or categories, such as clothing, accessories, or footwear. Length refers to the total number of items or variants within each product line, such as sizes, colors, or styles. Depth refers to the number of options or choices for each item, such as materials, features, or prices. Consistency refers to how closely related the products are in terms of quality, usage, or target market.

2 Why is product mix important?

Product mix is important because it affects the store's image, profitability, and competitiveness. A well-designed product mix can help the store create a distinctive identity, appeal to different customer segments, and differentiate from competitors. A poorly-designed product mix can lead to customer dissatisfaction, inventory problems, and lost sales. Therefore, choosing the optimal product mix for a new store launch requires careful research, planning, and testing.

4 How to test the optimal product mix?

Before launching your new store, you need to test your product mix and make sure it meets your objectives and customer expectations. There are different methods and tools that you can use to test your product mix, such as surveys, focus groups, online platforms, or pilot stores. The main goal of testing is to collect feedback from potential customers and measure their interest, satisfaction, and willingness to buy your products. You can also use testing to evaluate your pricing, merchandising, and promotion strategies and how they affect your product mix performance.

5 How to evaluate the optimal product mix?

After launching your new store, you need to evaluate your product mix and monitor its results and impact. You can use various metrics and indicators to measure your product mix performance, such as sales volume, revenue, margin, market share, customer retention, or customer satisfaction. You can also use qualitative methods, such as customer reviews, testimonials, or suggestions, to gain insights into your product mix strengths and weaknesses. You should compare your product mix performance with your goals and benchmarks and identify any gaps or opportunities for improvement.

6 How to adjust the optimal product mix?

Your product mix is not static. It needs to adapt to changing customer needs, market trends, and competitive pressures. Therefore, you should review and adjust your product mix periodically and make sure it remains optimal for your store. You can use data analysis, customer feedback, and market research to identify any changes in customer demand, preferences, or behavior. You can also use innovation, experimentation, and collaboration to introduce new products, modify existing ones, or eliminate underperforming ones. You should always test and evaluate your product mix adjustments and measure their impact on your store performance.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?