Making smart decisions about what is in your product mix is, of course, always important to success. As we look forward to 2021, it’s clear that customers will continue adapting their shopping habits and preferences. As more people shift to online ordering and purchasing of everyday goods and groceries (among other things), distributors are going to be highly vigilant over what they stock. And, as a result, retailers are going to be scrutinizing what’s on their shelves more heavily, as they look to fulfill evolving needs and make the most of the precious space they have.
All of this points to one thing: Greater sensitivity among consumers and sellers (online or brick and mortar) to having the right products available in the right places. For those who manufacture and produce these products it means making hard decisions about what to keep and what to discard in order to meet the needs of the market.
All of this points to one thing: Greater sensitivity among consumers and sellers (online or brick and mortar) to having the right products available in the right places.”
Companies in all categories need to stay close to their customers to determine what is essential to structuring their portfolios for ongoing success. There has been a sea of change out there that warrants a fresh look at this situation.
What does that mean for your brand? Taking one or more of these three essential steps can help you identify what changes you should make, if any:
1. Revisit your customer journey to see what people are reacting to in your category, how they are navigating it, what they are prioritizing, and what their mindset is when purchasing in your space.
For example: The cleaning space has changed dramatically in a matter of months. Our clients in this space are looking closely at how this has changed the customer journey so they can deliver the right products in the right places and promote them in the right ways.
2. Combine sales data with customer feedback to help you see which of those mid-tier to low-tier performers can safely be removed without losing share.
For example: With personal care products being heavily impacted during this time, our clients that play in the grooming space have been tasked with streamlining their portfolios to meet demand in the most efficient way possible. They’ve used a mix of shelf evaluations and choice-based approaches to do this.
Companies in all categories need to stay close to their customers to determine what is essential to structuring their portfolios for ongoing success. There has been a sea of change out there that warrants a fresh look at this situation.”
3. Consider the opportunity landscape to see if there are priority needs and benefits that customers are seeking which your portfolio is currently not fulfilling, and then turn that into an innovation or brand stretch initiative.
For example: As purchasing habits are changing, some of our financial services clients are using priority scoring (an approach to identify new and emerging benefits that they can focus in on for future development) to provide services that will best cater to new ways of behaving.
Want to discuss potential challenges to your product line-up in more detail?