A company that develops new types of products must resolve issues of product mix.
An assortment of goods is a certain group of goods that are closely related to each other by similarity of functioning, groups of buyers interested in them , types of trading establishments selling them, or price range.
For example, the assortment manufacturer “Revlon” is a group of cosmetics, “General Motors” - cars, “Panasonic” - television and video equipment.
In product policy, the most interesting are groups of goods that perform similar functions.
The product range is characterized by such concepts as breadth (number of product groups offered), depth (number of items in each group), saturation (expansion of the product range when adding new products), harmony (proximity of the product to production processes, distribution channels, the end consumer), rationality (ability to satisfy customers), sustainability (ability to satisfy demand), novelty (ability to satisfy changing customer needs).
The breadth characterizing the assortment diversifies the products according to the requirements of consumers in order to stimulate them to shop in one place. If a company produces several assortment groups at once, it means that it is a commodity nomenclature. Many large companies specialize in the production of products of several assortment groups: Avon (whose product range includes three assortment groups: cosmetics, household goods, jewelry), Samsung (video and television equipment, household appliances, telecommunications), " Procter & Gamble ”(the assortment of which consists of six product groups: detergents, disposable diapers, toothpaste, deodorants, soap, coffee).
The depth of the product range is the ability to meet the needs of different segments of customers for a particular type of one product. For example, toothpaste can be sold in different packaging and with different characteristics of the composition.
Saturation of the product range is the addition of new products within the existing range, while new products should differ significantly from existing ones. This happens when a company strives for leadership, loads production capacities to avoid equipment downtime, and tries to prevent the growth of competition. An example of a high saturation range is Procter & Gamble, which produces about twenty kinds of detergents.
Saturation of the assortment leads to an increase in costs, since it becomes necessary to maintain inventory and modify products. There is a danger of sales fluctuations. Therefore, the product range in marketing requires thoughtful management to maintain the company's profitability and the successful fight against competitors.
Assortment management is the coordination of various types of activities: integrated market research, design, scientific and technical work, marketing, advertising, service, demand stimulation. The complexity of this task lies in the sufficient complexity of combining all the elements. If this is not done, then the enterprise may begin to produce not the products that the consumer needs, but which is convenient for the production of production units. Marketing considers this situation as a direct contradiction to what needs to be done in reality to achieve effectiveness.
The tasks of assortment management are to prepare the consumer specification for the product, transfer it to the design department and ensure that the prototype is brought to the consumer's requirements. Only in this way can it be advisable to invest in product modification, and not spend money on advertising obsolete goods. Assortment management is carried out by the head of marketing.