We move on to the next step, product categories finalization. It may confuse you about which category of the product you should choose to sell at your supermarkets.
Generally, a product category is a group of similar products with similar characteristics. A product category’s organization and grouping should be based on your distinct offerings, the size of the supermarket as well as customer persona you wish to engage with. Also, the location of your hypermarket should be kept in mind while preparing your product category finalization, in case you have been living in the chosen location then follow your instinct of the market based on your observation. The key is to have a complete analysis of the market, your competitors’ shelves, and the demand of the consumers within a specific demographic location.
Why is it Important and how to ace it?
It is a mandatory step to have a list prepared after post-market research for a better future and smooth functioning within your supermarket store. In addition to helping to relate business goals with the purpose, it simplifies the procurement process and helps in improving the customer experience as well. Supply chain risk can be reduced while innovation across various categories can be boosted.
Preparing a product category list should have a combination of food items and non-food items. Food generally has lower margins, non-food has higher margins, and it should also be a perfect combination of branded as well as loose products, with the loose product we mean to say let us suppose you come up with your own brand in the future because that is where high margins and volume can come from. Your prepared product category list will help you know how much of the total investment will be incurred in the entire inventory and the idea of the margin you will be getting for each and every product you plan to sell.
Why Choose YRC
Your Retail Coach is a progressive retail & eCommerce consultant with more than eleven years of experience in helping build brands in almost every niche of the retail industry. For more information on retail & Eccomerce visit the following links:
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Retail & E-commerce Blogs: https://www.yourretailcoach.in/blog/
Link to the video description of the above content: https://www.youtube.com/watch?v=nLylodwRGZA
Refer to more articles from series:
Click on the Link [For Step 1 ] : Business Model Development: https://youtu.be/biawpmxX4ds
Click on the Link [For Step 2 ] : Product Categories Finalization: https://youtu.be/nLylodwRGZA
Click on the Link [For Step 3 ] : Organisation Structure: https://youtu.be/N1GQ66fFWNw
Click on the Link [For Step 4 ] : Systems & Processes: https://youtu.be/E-SftiDBiA0
Click on the Link [For Step 5 ] : Layout Planning: https://youtu.be/RZaLw8TFaBE
Click on the Link [For Step 6 ] : Software Implementation: https://youtu.be/LyNz8kOuHxw
Click on the Link [For Step 7 ] : Process & Soft-skills training: https://youtu.be/bD6V5vPMeRs