Product Strategy
You learned in Chapter 3 that products
are either goods (merchandise) or services. A
company’s product mix is its entire selection of
goods and services. Retailers differ in terms of the
product assortments they offer. Besides selling
goods (shirts, slacks, suits, and accessories), they
also offer services, such as advice from salesclerks,
convenient parking, and clean rest rooms. Both
goods and services must be considered when
retailers evaluate their product strategy. Shoppers
are more demanding than ever these days, seeking
the highest quality merchandise, at the lowest
prices, with the best service.
Merchandise Selection
A retailer’s array of goods is called its
assortment. Assortment refers to the range
of stock, or total selection, a retailer carries,
whether it is full, limited, or specialty, 13-14.
Customers buy from retailers offering the
merchandise assortments they want. Included in
assortments are the variety and types of styles
offered; the colors, sizes, fashion, and quality
level; and the price ranges of the goods. Retailers
study their target markets in order to anticipate
the assortments their customers will expect them
to have. Their goal is to successfully compete
against other retailers.
Assortment breadth (width) is the number of
different item categories or classifi cations offered
by a retailer, regardless of how many of each
category is stocked. An assortment is said to be
“broad” or “wide” when many different varieties of
goods are available. For instance, there may be
many different types, brands, and price ranges of
dresses or suit styles offered for sale.
Assortment depth indicates the quantity of
each item available in the assortment of goods
offered to customers. An assortment containing
an item in great numbers, in many sizes and
colors, is said to be “deep.” Thus, there might be
multiple dresses and suits of the varieties offered.
An assortment with only a few of each item is
said to be “shallow.”
Three different approaches to stock depth
and breadth are (A) broad and shallow, (B)
narrow and deep, and (C) moderate breadth
and depth. These are illustrated in 13-15. Stores
that carry a broad and shallow assortment stock
small amounts of many different styles. Upscale,
prestige retailers tend to stock broad and shallow
assortments. They offer small stocks of many
styles in limited sizes and colors because their
customers desire exclusivity.
Retailers that carry a narrow and deep
assortment stock relatively few styles, but
offer them in many sizes and colors. Mass
merchandisers focus on narrow and deep
assortments of proven goods that are well into
the peak of the fashion cycle. They stock the
latest fast-selling items in large quantities and
have high inventory turnover rates.
Stores that cater to mid-range fashion
and quality might stock moderate breadth
and depth. These tend to be department and
specialty stores. However, these stores usually
stock broad and shallow assortments early in
the season when new styles are being tested.
When demand for styles has become clear, they
concentrate on narrow and deep assortments of
the most popular styles. Since retail space and
inventory costs must be considered, stocking a
broad assortment may limit the depth to which
those items can be carried. Conversely, if depth
is desired, space and costs often limit the variety
that can be offered. However, if the right items
are not in stock when consumers want them,
shoppers will go elsewhere.
13-14 The assortment in this specialty shop
consists of casual apparel for young male
customers.
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