Situation/ Challenge
Past acquisitions and continuous innovations at all levels (packages, flavors, sub-categories, etc.) resulted on a huge portfolio of overlapping brands and SKUs. The challenge: to build a ‘future state’ portfolio that better aligned with market trends and that would reduce redundancies/ complexity (drive both operational synergies and improved marketing resource allocation)
Approach
Developed a comprehensive assessment at 3 levels, to map and prioritize categories, brands and SKUs. Including category size, growth, profitability and company portfolio performance. Mapped brands based on their role in the overall portfolio, and identified synergies at a brand-geography level. Leveraged financial and market information to prioritize SKUs from a profitability and point-of-sale competitive perspective
Results
Over 20 brands/ sub-brands were discontinued or transitioned out, 2 brands were identified for acquisition and the SKU rationalization program (~200 discontinued) resulted on increased focus to the sales team and initial operational synergies of over $5M.
