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Home > Our Clients > Success Story
"Using Opportunity Finder to Provide Unbiased Insights and Recommendations during a Category Review"
Situation
A major consumer products manufacturer was challenged by a regional grocer to improve category profitability by innovating new merchandising strategies. The grocer was concerned because it had seen competitors using clustering techniques to identify specific growth areas according to demographics for categories. The grocer wanted to use unbiased POS data to develop action plans. Specifically, the grocer wanted to cluster stores according to level of income: high, medium, low.
Task
We identified an opportunity to add extra value by using Opportunity Finder to quantify sales opportunity at the category, product, and SKU level and provide actionable recommendations on how to capitalize on those areas of potential growth. Clusters were to be developed according to the income based on the client's specifications.
Action
We worked with the manufacturer to craft a Category Review plan. The clusters that were initially developed based on income did not yield any insight. Therefore, we created store clusters based on consumer profiles using the retailer POS data, consumer demand, and the competitive environment. Once the clusters were established, we identified key items by cluster based on the opportunity gaps and potential sales quantified for each quadrant to ensure profitable growth.
Result
The grocer was thrilled with the results of the clusters and praised the client for the initiative and effective modeling of insights to develop new solutions at retail that went beyond the initial request of income clusters. The grocer was confident the recommendations would increase profitability upon implementation and appreciated the unbiased approach to their shelves.
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