In the pool and hot tub industry especially, seasonal considerations play a vital role. Monitoring inventory levels as the season comes to an end is crucial for improved forecasting. It is advisable to exercise caution when considering “one-time product” purchases, particularly items with specific dated features, such as holiday decorations for a particular year. Choosing to buy generic specialty items rather than those tied to a specific date allows them to be resold the following holiday season.
For businesses seeking assistance with forecasting, Google Analytics offers a range of free reports that reveal valuable insights. These reports provide information on the most-viewed pages and products, along with their popularity in nearby cities, making it particularly advantageous for those with multiple store locations. Further, Google Analytics enables the filtering of top product performers based on clickthrough rates, or for those involved in online sales, cart conversion rates.
By using behavioural data, businesses can also gauge trends and get a feel for what is or may be popular items. For instance, this could involve comparing the appeal of one type of floatie versus another in their inventory or tracking the usage of specific terms or keywords entered into their website’s search bar. The reporting options within Google Analytics, including the more advanced GA4 version, offer a multitude of ways to analyze data, potentially leading to an in-depth exploration of various layers of information. Reviewing analytic data is a task substantial enough to warrant an entire article, given the vast depth of analysis that can be undertaken.
As a retailer or distributor, it is imperative to access and utilize real-time data and analytics regarding inventory levels, stock movements, and pertinent metrics. This capacity empowers businesses to make well-informed decisions regarding inventory management and, in turn, enhances operational efficiency.
The product itself: Branding and packaging
Retailers should consider how a product presents itself before making the decision to stock it in their store. It is important to view it from the perspective of the customer and ask whether it has the potential to attract them. The significance of product packaging in shaping consumer buying choices should not be underestimated. A brand’s use of colours, images, and materials should capture attention and facilitate sales. Further, it is important to assess whether the branding aligns with the company’s image. For instance, if the business is positioned as a high-end retailer, the product should exude an air of sophistication. Conversely, if it caters to a family-focused demographic, the messaging and packaging should be kid-friendly.
The product’s purpose should be readily evident through its design and printed materials to avoid any potential misunderstandings. This is key because businesses want to avoid scenarios where customers make a purchase only to return it feeling upset or misled. Keep in mind, even though the retailer did not make the product, by selling it, they become associated with its overall quality in the eyes of customers. Today, in the world of social media and online reviews, it is imperative to make informed decisions to minimize the chances of offering subpar products to customers.
Competitive analysis
Conducting a competitive analysis provides a business with the opportunity to understand what other businesses nearby are selling in terms of both basic and unique products. It enables them to gain insights into the existing market landscape and identify any advantages their competitors already possess. The goal is not to directly compare or replicate the strategies of other businesses, but rather to use a simple strengths, weaknesses, opportunities, and threats (SWOT) analysis to identify internal starting points and potentially fill any gaps in the market. The objective is to stand out in the market, and being aware of the competition will not do any harm. Further, this research yields valuable insights into the competitors’ marketing approaches, allowing businesses to understand how they are selling their products. Having this knowledge can be instrumental in the development of stronger and more effective business strategies.
