Streamlining Grocery Retail for Today’s Consumer
Grocery Retail | Marketing Strategy | Cost Reduction
Our client is a regional grocery chain based in the northeastern United States, with a strong presence in the grocery retail market.
The client faced challenges with an overly complex product assortment and rising operational costs. They needed a strategy to streamline their product offerings, improve profitability, and reduce operational complexity while maintaining customer satisfaction.
OUR APPROACH
We collaborated with the client to create a comprehensive three-year marketing and pricing transformation plan. This plan aimed to reduce the SKU count by over 25% while enhancing overall profitability and customer experience. Our work included:
Analyzing current product assortment and identifying underperforming SKUs.
Developing a marketing strategy to highlight streamlined product offerings and maintain customer loyalty.
Implementing a pricing strategy that balanced profitability with competitive pricing in key categories.
OUR APPRENTICESHIP
Throughout the project, we employed our apprenticeship approach to ensure the client’s team gained hands-on experience:
Client personnel worked alongside our team in data analysis and pricing model development, gradually taking the lead in key work-streams.
We involved the client in the creation of the marketing and pricing strategy, allowing them to drive decision-making and implementation efforts.
“They approached the problem in a way we wouldn’t have tried. Now we can replicate that.”
Senior Manager, Pricing
OUR RESULTS
The transformation plan was successfully launched, leading to a more efficient product assortment, reduced operational complexity, and improved profitability.
Additionally, through our apprenticeship approach, the client’s team gained essential skills in marketing, data analysis, and pricing strategy, positioning them for continued success in implementing future initiatives.
OUR RECOMMENDATIONS
SKU Reduction
We recommended reducing the SKU count by over 25%, focusing on eliminating low-performing products while optimizing high-margin categories.
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Marketing & Pricing Strategy
We developed a pricing strategy to boost margins while maintaining competitiveness and a marketing strategy to communicate the changes to customers effectively.