What's the best way to determine which products to stock for your target market? (2024)

The first step to determine which products to stock is to know who your customers are, what they want, and what they value. You can use various methods to gather customer data, such as surveys, interviews, feedback forms, loyalty programs, social media, and analytics. You can also segment your customers based on demographics, psychographics, behavior, and needs. This will help you create customer personas and understand their pain points, preferences, and motivations.

The second step to determine which products to stock is to analyze your competitors and see what they are offering, how they are pricing, and how they are marketing their products. You can use online tools, such as Google Trends, SimilarWeb, and SEMrush, to research your competitors' websites, keywords, traffic, and social media presence. You can also visit their physical stores, if possible, and observe their product assortment, display, and service. This will help you identify their strengths and weaknesses, and find gaps and opportunities in the market.

The third step to determine which products to stock is to evaluate your current products and see how they are performing, how they are meeting your customers' needs, and how they are differentiating from your competitors. You can use metrics, such as sales volume, revenue, profit margin, inventory turnover, sell-through rate, and customer satisfaction, to measure your product performance. You can also use tools, such as SWOT analysis, product life cycle analysis, and product portfolio analysis, to assess your product strengths, weaknesses, opportunities, and threats.

The fourth step to determine which products to stock is to optimize your product mix and decide which products to keep, add, modify, or eliminate. You can use techniques, such as ABC analysis, Pareto analysis, and category management, to classify your products based on their profitability, popularity, and strategic importance. You can also use methods, such as market penetration, market development, product development, and diversification, to explore new ways to grow your sales and market share.

The fifth step to determine which products to stock is to test your products and see how they perform in the market. You can use methods, such as pilot testing, split testing, and market testing, to experiment with different product features, prices, promotions, and placements. You can also use feedback loops, such as customer reviews, ratings, testimonials, and referrals, to collect and analyze customer responses. This will help you validate your product assumptions, improve your product quality, and increase your customer loyalty.

The sixth step to determine which products to stock is to monitor your products and see how they evolve over time. You can use tools, such as dashboards, reports, and alerts, to track your product performance, trends, and issues. You can also use methods, such as benchmarking, auditing, and reviewing, to compare your product results with your goals, standards, and best practices. This will help you measure your product success, identify your product problems, and implement your product changes.

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Retail Operations

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