week8discussion

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School

Southern New Hampshire University *

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Course

QSO-620-Q3

Subject

Marketing

Date

Jan 9, 2024

Type

docx

Pages

2

Uploaded by UltraFang11324

Hello Class, The article I chose this week is titled "SKU Proliferation, Rationalization, and Prioritization - September 2023", the article's main point is the how companies offer many variants to a product and how this affects marketing, production, and profitability. For example, the author states that when looking to purchase a coffee maker, each one offered something different than the other and the price point varied from $10.99 to $229.99 (Ford, 2023). Each company offers products to consumers to meet their needs, in the case of the author they only wanted to purchase a basic coffee maker with a low cost. Other consumers might be interested in a coffee maker that offered a bean grinder and milk frothier, but for the author that was not their requirement. Companies offer variants of products to give consumers a choice, whether it is GMC and their 6 automotive brands, or 10 variations of the color green companies want to maximize customer service while gaining market share from the competition (Ford, 2023). The Pareto Analysis is the statistical analysis of SKU management, or 80-20 rule. This means that a company would expect that 20% of products sold would generate 80% of sales revenue (Ford, 2023). This means that some products that have variants might sell better than others all depending on cost, variants, and the consumer's needs. This can lead to a process that is not proactive as there can be too many variables, but there is still the opportunity to continually improve the product over time. The problems that companies can face in SKU management is stockouts, where a product sells good but is difficult to keep in stock, or deadstock, which are product that do not sell well at all. Forecasting through marketing and sales to focus on trends can help avoid some of the problems that come with offering different variations of products. Market research, if done correctly can develop the total number of products that meet the demographics of the consumer.
Nmbrgeek. (2023, September). SKU Proliferation, Rationalization, and Prioritization - September 2023. https://gnj.ascm.org/articles.php?id=53
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