Your Product Mix Depends on Your Sales Channel

In a meeting with a CEO earlier this week, we discussed changes happening at his company. One coming changes involved his sales presence on the internet. Like most products that sell through retailers, his ended up on various internet stores beyond his control. Instead of fighting it, he’s looking at how to best use the channel without diminishing his overall brand promise.

Among other considerations, he wants to get the product mix right. Many of the products in the portfolio require a specialist’s assessment. Others, however, are appropriate for the general market. That is the first place to start with defining the mix. But there are other opportunities as well.

For example:

  • If a product is appropriate for the general market, but would primarily be used in combination with a specialty product, it may make more sense to keep it out of the mix.
  • Suppose, though, you have a general market product that stands alone. Consider offering it exclusively online.
  • Investigate putting together special kits or trial packs for online sales.
  • Maybe sell higher volume, lower profit products through the internet to save on some costs.

There are several product mix scenarios we can develop. Here we’ve focused on modifying your mix for online sales, but the same thought process works regardless of the channel. The key is avoiding cannibalization of your own sales or of those of your partners.

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