Roll out in merchandising refers to the release of a product by batch or by area. By employing this method, production is not stepped up to full capacity, and the risk of loss, should the product not take off, is minimized. Since the first release serves as a test, this can help the company decide whether to continue and push through with a full release.
Roll out can also refer to the process that takes place when a change is introduced in a company or in the market. This takes place in stages. It is important that the end goal is clear.
In marketing, since a roll out takes place progressively, it usually starts with a product that is both low-cost and relatively easy to sell. The objective is to let consumers know that this product offers high value for money. In this way, the company is able to start building a relationship with a group of clients.
As the company goes through each stage of the roll out, it will be important to determine profits made for each group of customers and determine when an area has reached its saturation point. This makes it easier to allocate resources to areas which still generate profit.
The process of rolling out a product is not restricted to geographical considerations. The phases of a roll out can also be determined by marketing methods or media to be used, especially in the context of online marketing. For instance, a company may start with pay-per-click search engines then move on to banner campaigns and the use of opt-in emails eventually.
