Class strategy
Category strategies include efficient product mix, efficient shelf management, efficient pricing and promotion, efficient replenishment and efficient launch of new products. The purpose of efficient product mix is to increase product diversity and reduce product repeatability. Therefore, when determining the product variety to be sold, we should not only rank 80/20 according to the comprehensive indicators such as sales volume, sales volume and profit, but also consider the integrity of product segmentation (such as product function, adults/children, price segment), product performance in the whole market, whether it is a new product, etc. Market research companies or industry-leading suppliers can provide market share data. Accordingly, retailers can also introduce products that are popular in the market but not sold in our stores to supplement the diversity of products. Shelves are an important resource for retailers. Besides storing goods, it is also the main means for retailers to communicate with customers. It conveys the retailer's value orientation to customers, shows the retailer's sales strategy, guides the development trend of categories and guides customers' buying behavior. Therefore, when displaying goods, we need to consider: 1÷ category function 2÷ category adjacency 3÷ buyer's purchase decision-making process (considering the order of brand, function and price when purchasing products) 4÷ fair shelf principle (determining display position according to product performance) 5÷ category development trend. Channel fees are common in China. When determining the exhibition, we can give due consideration to them and comprehensively calculate their input and output. But if you sell shelves by centimeters like some retailers, you will put the cart before the horse. The image of retailer's price in the eyes of shoppers is not only determined by the value of the price, but also the result of the comprehensive effect of price advantage, price transparency and cost performance. Many retailers will wonder: Why are the prices of my products mostly lower than those of a big retailer, but shoppers think the prices of competitors are cheaper? The transparency of price, the transmission of price information and whether it is worth the money play an important role. In terms of pricing, we advocate1< Intelligent pricing: attracting customers with price-sensitive products and making profits with price-insensitive products > 2 > System pricing: determining gross profit margin according to brand function, not a category ÷ 3 > Reducing the difficulty of price management (linear pricing): unifying the pricing of products with the same purchase price of the same brand as much as possible. Efficient promotion can be understood as: choosing the right items at the right time, displaying them in the right place with the right promotion form, and promoting them properly. From the selection of promotional items to the display of promotional items in stores, we must consider the target shopping population and category strategy of the category. If you want to attract middle-and high-income shopping groups, you can't promote low-end products for a long time; If you want to increase the unit price of customers, you can't always use small packages to promote products. Through our analysis tools, it is easy to find that: 1] the highest sales volume does not necessarily occur at the lowest price; 2) Price reduction is not applicable to all varieties, such as new products, in-store demonstrations and sample distribution. Efficient replenishment is an effective guarantee for category management, and the main goal is to control the in-store shortage rate and inventory days. The effective introduction of new products is one of the elements to maintain an effective product mix. Some retailers continue to introduce a large number of new products after optimizing the product structure, which leads to the confusion of product structure again. The following factors should be considered when introducing new products: the function of 1] category. The target category needs to ensure its diversity, while the convenience category only needs to sell the main varieties. 2) Product features (product performance and new functions, cost performance, consumer testing, profitability, sales potential) 3) Market support (media investment, sample distribution/consumer trial activities, consumer education, public relations activities/professional association recognition) 4) In-store promotion activities (in-store promotion, in-store demonstration/in-store advertising, promotion, exhibition fund) 5) Suppliers (suppliers