Assortment Collaboration

Manufacturer-Retailer Assortment Collaboration Increases Sales and Share

ISSUE

A major food and beverage manufacturer set a goal to increase its share of shelf at a major retailer. To do so, it needed to sell in a strategic aisle reinvention plan at the retailer, which involved drastic changes to the shelf. The manufacturer needed to elevate the in-aisle shopping experience among category enthusiasts at each location.

INSIGHTS

Supported by IRI, the client developed a holistic strategy for improving shelf assortment. Using IRI Assortment Optimization, the team identified products with lower incremental contribution to category sales as candidates to remove from the shelf. Next, they identified distribution voids that could be added based on their ability to create the most incremental growth to the category. Lastly, they simulated the incremental opportunity of adding in the manufacturer’s innovation. Using the simulation results, the manufacturer both identified opportunities for its own brands and provided a full aisle assortment recommendation to the retailer that would benefit the entire category. This allowed the manufacturer and retailer to derisk the decision to make a significant change to the shelf.

IMPACT

The compelling use of IRI analytics contributed to the manufacturer earning the retailer’s coveted 2019 “Vendor of the Year” award across all food and beverage.
 

Additionally, the recommendations created category and brand growth. Beyond gains by other on-trend national and local brands, the manufacturer benefited by gaining item void closures and increased shelf presence to accommodate shopper demand. Post-launch, category sales in the market increased by +4.1% and market share by +1.4 points versus the same time frame a year ago.

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