What is product mix in SAP IS-R - SAP for Retail?

SAP Term: product mix

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail The combination of products offered for sale by a location, which takes into account both the variety and quantity of goods. The product mix is more than just inventory. It defines the location's niche in the market and the personality of the brand. The product mix is often used to attract a certain demographic of shoppers to a location.

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• Key Concepts: 
  Product mix is a term used in SAP for Retail to refer to the combination of products that a retailer offers for sale. It is the combination of products that a retailer chooses to stock in order to meet customer demand and maximize profits. The product mix includes both physical and non-physical products, such as services, warranties, and other add-ons. 
  
  How to use it: 
  In SAP for Retail, product mix is managed through the Merchandise Management module. This module allows retailers to manage their product mix by creating product categories, setting up product hierarchies, and assigning products to categories. Additionally, retailers can use the Merchandise Management module to set up pricing rules and promotions for their product mix. 
  
  Tips & Tricks: 
  When setting up a product mix in SAP for Retail, it is important to consider customer demand and preferences. Additionally, retailers should consider the cost of stocking each product and the potential profit from selling it. This will help ensure that the product mix is optimized for maximum profitability. 
  
  Related Information: 
  The Merchandise Management module in SAP for Retail also allows retailers to manage inventory levels and track sales performance. Additionally, retailers can use the module to analyze customer buying patterns and make informed decisions about their product mix.