It is very important for a retailer to offer a variety of products/services since it increases sales. If the retailer is able to capture a lot of consumers from across the market, it will avert them from moving to the competitors. However, in order to have a successful product variety, one has to consider strategic decisions, which give the seller an ability to offer his product at low costs in the market. However, in order to successfully manage a line of products, the following decisions should be made:
- The measurement of variety a company decides to offer the market in terms of goods and services.
- The product architecture.
- The type of distribution the customer interface.
- The degree of location of production and vertical integration.
- The process of technology.
Therefore, the company must consider the above decisions in order to avoid backfire of having a variety of products. When a company has a variety of products in its offering, the decision maker (the customer) has a chance of making an optimal choice. Having a variety of products is important, since there is an ability to seek a diversity of options over time for the customers. Moreover, it satisfies a customer’s internal desire for change, and he does not have to look further to try out a new product in other stores, hence, a hike in sales.(Huffman, 2000).
Toyota, for example, has a variety of products in its offering from personal cars to business cars. A customer can always browse through the available cars and get something that fits him/her. Therefore, no customer leaves the Toyota showroom without getting the most suitable car. All in all, this makes Toyota sell more and build a brand for the company.