Optimization of the product portfolio in a relatively simple way allows one to maximize sales profit and improve competitive position of the company. It is also one of the most important methods to optimize revenue streams and eliminate unnecessary sales costs.
What can we gain by working with a product portfolio?
We have a wealth of experience, proven research methods and documented hard results. We determine the optimal product portfolio for the Customer for specific markets (segments, channels). We obtain specific results by sorting out the assortment and adjusting sales activities:
- we improve profitability, sales volume and dynamics of the highest profit– making products and those with the greatest potential
- we eliminate unnecessary costs in the area of sales and logistics,
- we obtain hard data based on which executives can model their portfolio of products: strengthen profitable products, withdraw unprofitable ones,
- we increase the strength of product brands and their share in the category at all points of sale,
- in the company we create space for the development and implementation of effective customer loyalty programs and incentive programs for sales representatives.
How do we work:
We obtain data which is transformed into pure profit ...
When optimizing product portfolio we take into account several dimensions:
- market (who is the customer, in what situations, what are his/her motivations, what are the segments),
- strategy (in which direction should the organization, its products and sales develop),
- finance (what are the financial possibilities and financial constraints, what goals should be achieved).
Analysis – we draw conclusions on the basis of hard data
Portfolio optimization starts from the analysis, the aim of which is to collect necessary data to determine the potential as well as the strengths and weaknesses of particular products. The analysis is multidimensional (market, strategy, finance, product potential, sales channels) and includes the so– called shopper (decision tree, consumer behaviour) and merchandising analysis (placement on the shelf, brand strength, share in the category, etc.).
The analysis gives us hard data, based on which we formulate conclusions and recommendations. We indicate, among other things:
- how to exploit the potential of the strongest products (higher margin, higher turnover),
- which products may be withdrawn (low potential, unprofitable products)
- how to optimally place goods on the shelves at various points of sale,
- what tools may be used by sales reps in effective work (including what arguments they should use),
- where are unnecessary costs in the sales and how to eliminate them,
- how can one improve indicators, including the rate of Sales (ROS).
Working in teams
When we sort out portfolios we go beyond product analyses. Involvement of people is the key issue – at all levels of sales and marketing. That's why projects are supported by workshops, usually organized for the combined forces of sales and marketing and for sales teams. Our work is based on obtained results, we clarify real goals and we assist teams in establishing actions which help to attain them.
Workshop work in teams often uncovers potential new challenges (sometimes problems) of an internal nature (cooperation, work organization, management style) or external nature (market, distribution).
Implementation for specific results
Collaborative development of common goals brings important benefits:
- it strengthens cooperation leading to the attainment of common objectives,
- everyone understands goals and better identifies with them.
Teams receive from us guidance and tools for operational work in sales and marketing thanks to which they are certain that products placed on shelves translate into the best results possible (we place products with the highest rotation, profitability and potential).
Sales representatives receive, among other things, sales optimizer and sales rep's manual (behaviour paths and arguments for particular products), distribution matrix and the Next Best Line tool. At the same time, as part of the project, we implement merchandising standards, measures for achieved objectives, merchandising quality principles and we make a segmentation of points of sale.
The result of our work is an optimized portfolio of products across all channels and points of sale and the implementation of an efficient system of monitoring and activities measurement – to maximize margins and revenues generated in the future.
Within the project we also conduct training for employees at all levels of the organization.