What is a product matrix?

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In English, this term sounds like a product grid, which means “product grid”. It represents the entire range of products available at a retail outlet (this can be both a wholesale and retail outlet).

All items are entered into a table, grouped according to selected characteristics, and thus a product matrix is ​​obtained. It clearly shows how much of a particular product is necessary for the normal operation of a retail facility.

Different features are selected for insurance leads for seniors classification, one or several at once (for example, model, size, material, etc.).

You will have a good example of a product matrix if the resulting table includes the following items:

a list of all available product units, collected into groups based on brand affiliation;

list of product groups;

volume of assortment in groups;

indicating what percentage of the total volume each category represents.

But these are not single strict recommendations for everyone. The final appearance of the table depends on the purposes for which it is formed. Here is a ready-made sample of a product matrix in Excel:

What is a product matrix?

There are also extended versions of tables. They contain style and price matrices. The most detailed descriptions are made for the best-selling products that bring high profits (first priority level). Here the assortment and prices are disclosed in detail. The other products (second and third levels) are not displayed so meticulously.

The level of priority depends on how great the demand for the product is and what profit it brings. What should be taken into account when compiling a company's product matrix? The general development strategy, the format of retail facilities and their location, the needs of the target audience, its characteristic features.

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A department in a cool center is better presented as a boutique and filled with elite quality goods. At the same time, a large store in a remote area is similar to a supermarket, and its assortment should consist of affordable everyday products.

In addition, the demands of the target audience, its solvency, and the presence of active competitors in the form of similar outlets (in terms of format and product range) are important.

Depending on the existing demand, goods can be grouped taking into account certain characteristics, based on age or gender factors, seasonality, purpose, price, etc.

A simple example: a coat of a specific brand falls into the category of clothing for women over 30 years old, it is a demi-season item, the price is average, it can be worn every day.

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The product range matrix should include products, each of which is selected according to certain characteristics. Let's say, for example, that a store selling coats (mentioned above) was initially created as a point of sale for all-season clothing for women. And in the process of work it became clear that the best-selling items were demi-season, fairly inexpensive items.

What is a product matrix?

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This means that the matrix should include products with exactly these characteristics. Other products will be unclaimed and will sell worse.

Of course, the assortment list of a store selling autumn coats can be very wide and represent a whole range of other products. At the same time, any of their categories is selected in accordance with the existing demand. It is the products included in the formed matrix of the product range that should be purchased and put up for sale.