🎓 Definition
A Group of Products that addresses a consistent and homogenous customer need. A range is made of Products (also called items or articles), with a selling price used by customers to answer a consumption need. Then each product can have several variants (in size, color, and flavor). Each variant has a barcode and is called a SKU (Stock Keeping Unit).
For the Retailer, the Range needs to ensure that it maximizes Customers’ Choices and avoids duplicate items. If Customers are unwilling to switch from one product type to another, the Retailer needs to ensure that it provides Customers with a complete set of Range Widths before it provides customers with many options in that Range Depth.
The range focuses on Assortment, Display, and Pricing.
🧪 Example of Range
While a group of products will always designate a clear idea of what it represents (for example, anyone can understand what products are in Hair Care -Shampoo, Conditioner, Treatment, Coloring..., etc.), the way each Retailer will select its Hair care products is unique. So, each Range is unique and represents the DNA of the retailer and how it wants to address its Customer Needs.
For instance, the Hair product range in the Premium store will consist of high-quality and priced items or even imported brands whereas Savings Outlet would display items that are more budget-friendly price, sold in bigger quantities or local brands.
âť“What Range is used for
1. Consider seasonality.
When it comes to certain SKUs, they may only perform at their peak during specific months of the year, and you need to consider that when ranging. Knowing this will help you determine how many times per year you need to review your range. Not only that, but it will also help you to understand your sales.
2. Look at your chosen Category Role
The role you choose plays a significant role because your product range needs to reflect it in-store.
For example, if you have given a category a Destination role, you must offer an extensive range of products throughout the year. If you don't, you're working against your chosen category role.
Likewise, if you've given a category a Seasonal role, you would only need to ensure that your range covers what your customers want during that particular season. You can reduce your product range and give space to other products or categories during the rest of the year.
3. Keep the Supplier/Retailer relationship in mind
Let's consider if you have a poor working relationship with your suppliers. If you have a bad relationship due to issues such as stock or inconsistency with pricing, you'll struggle to offer the products your customers want. That will not only affect your range - brands can pull out - but also your reputation as a go-to retailer.
On the other hand, let's consider when you have a good working relationship.
In the case of de-ranging products that affect your supplier, because you have a steady relationship, they could buy back any stock that isn't selling as well. These suppliers could also help you with logistics or even reduce prices so that you can place these products on promotion.
The same goes for listing products or planning to highlight their product to boost sales. If you can see that when a Supplier/Retailer relationship is a collaboration more than a rivalry, you can only gain from it.