Retail Strategy

Product Strategy & Management

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What is Product Strategy & Management?

Price, promotion, place, product, presentation and personnel. Choosing what to sell and for how much is obviously critical, but there is a plethora of information that goes into that decision-making as well as much more to consider when managing your products, such as:

  • What is my pricing strategy?  
  • What is mymarkup strategy and how does that affect my overall retail price?
  • What promotional tools will you use to influence the consumer’s purchase decision and, overall, their intention to purchase?
  • What type of products do you intend to carry?
  • What is thedepth as well as the breadth you will carry in your assortment?  
  • What is your anticipated turn as well as inventory levels?  

Gross Margin Return on Investment

GMROI is an inventory profitability evaluation ratio that analyzes a firm's ability to turn inventory into cash above the cost of the inventory. It is a measurement of the cost of purchasing, transporting, and holding inventory, plus the cost associated with fulfilling customer orders for that inventory — compared to the gross margin you receive from selling that same inventory. It is a better metric in retail compared to simple ROI and provides more accurate insights regarding inventory management.

Market Basket Analysis

Think back to all the time you purchased a product and were then suggested another product you may like. Some pairings may sometimes seem random, but they are based on the data. Market basket analysis is a technique that is used to discover the association between items. You can determine that if a customer buys one item, they are bound to buy (or not buy)another related item or group of items, a very powerful tool for retailers.