Variety Reduction Definition

In business, variety reduction is the process of reducing the number of different products or services that a company offers. The goal is to simplify the company’s product line so that it can be more easily managed and marketed.

There are several reasons why a company might choose to reduce its product line. One reason is to save money on inventory and production costs. When a company has fewer products, it can order larger quantities of each item and get discounts from suppliers. Another reason is to make it easier for customers to find what they’re looking for. A streamlined product line makes it simpler for customers to comparison shop and understand what they’re buying.

Variety reduction can be a controversial strategy, because it usually involves discontinuing some products that may have a loyal following among customers. In some cases, this can lead to a decline in sales. However, if done correctly, variety reduction can help a company focus its resources on its most successful products and improve overall profitability.