Short answer
Continuously analyze and adapt your product range based on customer feedback, sales data, and the product lifecycle to maintain market relevance and profitability.
- Field
- Innovation & Markets
- Source
- Academy of strategic management journal/Academy of Strategic Management journal (2016)
- Method
- Literature Review and Hypothesis Formulation
- Evidence
- Moderate effect
Strategic management of a product range, considering customer value and product lifecycle, is crucial for maintaining competitiveness and profitability in retail. This innovation & markets research insight is drawn from a 2016 study published in Academy of strategic management journal/Academy of Strategic Management journal. Using Literature review and hypothesis formulation, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Continuously analyze and adapt your product range based on customer feedback, sales data, and the product lifecycle to maintain market relevance and profitability.
Product Range Optimization Drives Retail Profitability
Strategic management of a product range, considering customer value and product lifecycle, is crucial for maintaining competitiveness and profitability in retail.
Academy of strategic management journal/Academy of Strategic Management journal · 2016
Key Findings
- 01Product range management is a key marketing function for ensuring product competitiveness.
- 02Optimizing the product range based on customer value and product lifecycle stages leads to better financial outcomes.
- 03Intuitive decisions about product lines can result in instability, loss of competitiveness, and reduced profitability.
Application
Design takeaway
Continuously analyze and adapt your product range based on customer feedback, sales data, and the product lifecycle to maintain market relevance and profitability.
How to apply
Implement a system for regularly reviewing product performance, gathering customer feedback, and analyzing market trends to make informed decisions about product additions, modifications, and deletions.
Project actions
- 01When defining your product range, clearly articulate the target audience and their needs.
- 02Consider how your product fits into the broader market and its lifecycle.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Addresses a core business function relevant to many industries.
- +Emphasizes a strategic, data-informed approach to product management.
Limitations
The theoretical nature of the paper means practical implementation details are not explored.
Reliability & validity
The findings are based on literature review, so reliability and validity depend on the quality of the cited sources. Empirical testing would be needed to establish direct reliability and validity.
Think critically
To what extent can 'customer value' be objectively measured, and how might this vary across different market segments?
Design Principles
"Product portfolio management should be dynamic, data-driven, and customer-centric."
Effective product range management moves beyond intuition, enabling businesses to align their offerings with customer needs, optimize inventory, and ensure a healthy cash flow. This strategic approach is fundamental for sustained market presence and financial success.
What This Means for Your Design
Think carefully about which products you offer and why. Make sure they are what customers want and consider how long each product will be popular.
How to use in your project
- 1.Use this research to justify your product selection and range decisions in your design project, linking it to market viability and customer needs.
Add to My Project
Quick Cite
Paragraph starter
This research highlights the critical role of product range management in retail success, emphasizing that strategic decisions based on customer value and product lifecycle are superior to intuitive approaches. This underscores the importance of a well-defined and adaptable product offering for achieving competitive advantage and profitability.
Source
Academy of strategic management journal/Academy of Strategic Management journal
Innovation Potential Management for Economic Systems
journal · 2016
View sourceQuestions About This Research
- What does the research say about product range optimization drives retail profitability?
- Continuously analyze and adapt your product range based on customer feedback, sales data, and the product lifecycle to maintain market relevance and profitability. Evidence: Academy of strategic management journal/Academy of Strategic Management journal (2016).
- Why does "Product Range Optimization Drives Retail Profitability" matter for design?
- Effective product range management moves beyond intuition, enabling businesses to align their offerings with customer needs, optimize inventory, and ensure a healthy cash flow. This strategic approach is fundamental for sustained market presence and financial success.
- How can designers apply this research?
- Continuously analyze and adapt your product range based on customer feedback, sales data, and the product lifecycle to maintain market relevance and profitability.
- What were the main findings?
- Product range management is a key marketing function for ensuring product competitiveness.. Optimizing the product range based on customer value and product lifecycle stages leads to better financial outcomes.. Intuitive decisions about product lines can result in instability, loss of competitiveness, and reduced profitability.
- What research method was used?
- Literature Review and Hypothesis Formulation.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2016 journal from Academy of strategic management journal/Academy of Strategic Management journal.
- What should I do differently in my next project?
- Implement a system for regularly reviewing product performance, gathering customer feedback, and analyzing market trends to make informed decisions about product additions, modifications, and deletions.
- What are the limitations?
- The research is primarily theoretical, relying on literature review and hypothesis formulation rather than empirical testing.