Category Management Case Study

Our client is a manufacturer of a food product that comes in two segments.

Traditionally, set the shelf with Segment A, which can come in large containers, placed on the bottom two rows of the shelf. Segment B, in smaller containers, is usually set by brand on the next 4-5 shelves. We call this the OVER-UNDER set.

A competitor (who only makes a product in Segment A), convinced a major retailer that the two segments should be stocked SIDE-BY-SIDE, maintaining the same overall section length. This gave more space to Segment A (and their brand). Our client wanted to see if this new stocking arrangement actually produced better sales.

The results showed that shoppers bought more packages and spent more money on the category when the shelf was stocked as OVER-UNDER.

 

 

 

The OVER-UNDER set was actually better for sales of both segments, even though Segment A had been given more space.

 

 

 

 

Our client was glad to see this result because their products sold better in the OVER-UNDER configuration.

 

 

 

Our client was able to go back to the retailer with the data and convinced them to change back to the original OVER-UNDER layout.

 

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