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Should we launch the full range of assortment in a new product launch?
Many companies launch the full planned assortment in the first tranche itself. They feel it would give consumers more choice. While consumers do get a bigger choice, distributing the whole range to various retail outlets is difficult. Since the demand is uncertain (let’s say unproven), retailers may not like to invest in the full assortment.
Demand for individual skus in the range turns out to be far more unpredictable, leading to stockouts and surplus inventory in pockets. Launching the full range in an online channel is still ok, especially if fulfilment is done from a limited number of locations.
Companies have found it prudent to launch a limited assortment, test consumer response, check velocity and acceleration in different geographies, and get the replenishment parameters right. Only then they would expand the range for successful launches.