Business Objective: Introduce a category arrangement that increases penetration and own-brand sales, while maintaining overall category sales.
Business Functions Impacted:
Business Situation: During the category review, the category captain presented a new shelf arrangement which would improve penetration, while maintaining or growing sales, a mutual goal.
To address the retailer's own brand objectives in addition, they developed a hybrid shelf concept with the intent of also growing own brand sales.
The retailer had recently implemented a practice of using ShopperMX™ Indicators to evaluate all significant category changes prior to in-market execution. The category buyer worked with a cross functional team to visualize the current planogram, the captain's initial recommendation and the buyers hybrid own brand planogram. A shelf indicator was used to evaluate the two test versions relative to the current concept.
Results showed the category captain's recommendation increased penetration by 1.4%, but the hybrid showed a 1.6% increase. Upon further investigation, the hybrid version performed better on other KPIs:
- 7% increase in category sales
- 14% increase in private label sales
- 5% increase in units per buyer
Implementing the hybrid shelf resulted in $920K in incremental sales and $275K in category margin for the retailer.
Top Ways to
Win at Retail
- Maximize Your Investment in Promotional Marketing
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