The criteria for categorizing product range are above five consumer preferences. If the product meets all of them in full – falls into the latter category first, if not – then the next. That's it. Thus, in Ideally, a successful retailer must provide a way categorization of its range: to form the first two categories as the most anticipated sales volume at acceptable margins, and be in the range fifth (in the original numbering) as a reflection of the fact that it is necessary nevertheless to have a "representative" set of products with a reasonable margin, although poorly amenable to prediction. The remaining – and bring the range. May whether to put into practice this "ideal" model of each of the participants of the market – the manufacturer or seller – separately? The answer – no. Only together, with joint and common understanding of key trends Market vendor and the manufacturer will be able to find the optimal mix of product categories.
And thus become more successful – at the same time! – On the market. Illustrate the application of the above for the case company-retailer, received the right to manage the assets of one of the competitors by the assignment of debt. Accordingly, now the parent company must correctly determine which suppliers stores the acquired company and for what products to return the debts in the first place. Matrix categorization gives a clear answer to this question: outstanding products of the first and second category must pay the first and turn them immediately to resume deliveries to stores. Items three and four categories should be divided into two groups – those that can be quickly (within months) to translate the first and second categories, and those who impossible. Then the first group should also be well paid to suppliers, while the latter, together with arrears of the fifth category, subject to restructuring. By the way, by restructuring the debt can persuade some of the suppliers to the production of private label for the new owner. Proper categorization of products provides automatic matching key market trends.
For example, if someone of the bunch "Seller-producer" wants to sell – just pay attention to it in the first place. If not – then you are able to choose whom to buy: namely, the one who will strengthen your first two categories of products. A successful partnership retailer's supplier allows you to actively develop promising direction private label. Correct categorization of products eliminates the Mirage – bloated branding and advertising vsevdo-premium products: in these conditions, they were frozen money and reduce profitability. Following the matrix indicates the orientation for maximum profitability and maximum continuity of cash flows. Which is equivalent to survival in a crisis and readiness for post-crisis breakthrough.