Fewer products, better business
A small brand's product line was losing money and duplicating a sister brand. Consolidating it into the stronger brand cut the losers, fixed the margin and put the products where shoppers look for them.
The situation
A company carried two brands selling many of the same products. The smaller brand's line of 37 products brought in little revenue and ran at a loss overall. Low volume meant inefficient production runs, and the products duplicated what the stronger sister brand already sold. The stronger brand, meanwhile, sat in the center aisles, while the independent grocers its shoppers used shelved the category in the produce and meat departments.
The work
- Separated what was worth keeping. Ranked the line by sales and cut the slowest sellers.
- Moved the best sellers under the stronger brand. 11 products carried over with a quick packaging change, putting less than $20K in revenue at risk over three years.
- Put the products where shoppers look. Moved the stronger brand from the center aisles to the produce and meat departments at independent grocers.
- Filled real gaps instead of duplicating. Planned new blends for shopper needs neither brand covered.
- Fixed the margin. Found one sales region below the company's minimum margin because of freight costs and a few slow items, and corrected both.
The lesson
More products and more placements don't guarantee more revenue. A few well-differentiated products, done right, usually earn more.
Other case studies
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From one flagship event to a revenue program
A company's only hosted event paid for itself but never produced a return. A redesigned event program turned events into a sales channel.
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