Business Objective: Introduce a category arrangement that increases penetration and own-brand sales, while maintaining overall category sales. 

Business Functions Impacted:kelloggs-cereal-on-shelf-666c333.jpg
Category Management 
Own Brands
Merchandising

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 retailers own brand objectives in addition, they developed a hybrid shelf concept with the intent of also growing own brand sales.

ShopperMX™ Approach

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.

Vitamins_Shelf-853741-edited.pngResults 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
Customer ROI

Implementing the hybrid shelf resulted in $920K in incremental sales and $275K in category margin for the retailer.