Studying and evaluating a product range is important to determine its strengths and weaknesses, competitiveness in the market, and identify opportunities for growth and improvement. There are many methods and tools for conducting product line research:
The Boston Consulting Group (BCG) matrix is an effective operational planning tool that allows you to classify products based on market share and growth rate. This matrix aims to divide products into four main categories: stars, cows, dogs, and dilemmas. Each of them has unique features and requires special management strategies.
The Ansoff Matrix is a tool that helps to determine the various directions of product line development. It allows companies to determine their preferences for working with existing or new markets and products. As a result of the analysis and use of this tool, four main development strategies are formulated. These are: market penetration, market development, product improvement, and product line diversification.
The McKinsey Matrix (GE) is italy email list an effective tool for assessing the attractiveness of a segment and the competition of products within it. It is based on various factors: market size and growth, level of competition, product quality, brand popularity, etc. As a result, nine segments emerge, which can be divided into three groups: leaders, contenders, and outsiders.
Systematic analysis and evaluation of products are carried out periodically to study in detail the changes occurring around. This allows for flexible adaptation to changes, as well as optimization of the use of resources and costs. Key points are the collection and analysis of data on sales, income, customer satisfaction and loyalty, as well as an overview of competitors' offers and other factors.
5 Common Mistakes When Creating a Product Line
Creating a product line is a complex task that requires special consideration. Often, entrepreneurs make five common mistakes when working on this task:
The problem of insufficient development of the sales funnel arises . It is necessary to implement logical integration of active sales products. This means that at least one product must be provided for each stage.
A common mistake that manufacturers make is to develop new products based on guesswork and assumptions , without taking into account the real needs of the target audience. To really make money, you need to study your customers carefully and understand what they really want and need.
Mistakes when creating a product line
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A single product can rarely satisfy all the needs and preferences of consumers. This is understandable, since a single product does not offer a wide choice.
No premium products are presented. There will always be those who crave exclusivity. For such people, you need to offer something unique and exquisite.
No changes. Time passes, trends change, new technologies and unique service formats appear. In order not to end up at a loss, it is necessary to check the product line at least once a year. It is possible that you will have to remove some items and add new ones.
Avoid these mistakes. Only a well-thought-out product line development strategy will lead you to success.