Toddler University Inc. is the name of a shoe company that makes children’s footwear. The company grew from almost nothing to sales exceeding $25 million. The secret of Toddler University’s success, according to some industry observers, is a unique product design that can drastically reduce retailers’ inventory requirements. In regular children’s shoes, there are 11 sizes and 5 widths—so, to have a complete selection, retailers would have to stock 55 pairs of shoes for each particular model. But Toddler University has patented a shoe that allows the use of a one-width shoe with five shoe inserts of varying widths, thus drastically reducing the retailer’s inventory requirements. Comment on this development in light of what you believe to be the relevant product strategy and channel management strategy interface.
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