How to optimize the private label portfolio ?
A leading food retailer wants to analyse the performances of its Private Label innovations and use it to optimize its strategy.
Private Labels contribute to around 20 to 30% of the market sales
They are becoming a major stake in the retailer’s strategy, even more, with the everchanging purchasing power of the very same customers shopping in stores.
(Data Memory 2022)
In order to analyze and optimize the performances of Private Labels innovations, Memory implements tools based on shopper data. Two complementary approaches are used: a thorough performance analysis and a constant performance tracking.
1. Analyze in depth the innovations performances :
- Overall analysis (AWS, ND…);
- Shopper analysis (customer’s profiles, frequency…);
- Evolution over time, taking into account the overall market trends;
- Identification of the innovation profile (i.e define if the innovation has potential, is successful, or if it needs to be challenged or questioned)
- Proposition of an action plan: whether the innovation needs to be distributed in more or fewer stores, to be promoted (discount, display…), or potentially be reworked.
2. Frequent follow up of the innovations performance, and comparison with the objectives set at the product launch.
100% of the Private Labels innovations were analyzed and a specific action plan recommended for each sku: increase numeric distribution for 40% of skus, decrease numeric distribution for 50% of skus and phase-out for 10% of skus. It delivered a 12% sales increase on the overall product scope
The tool created by Memory translates into a platform providing a comprehensive understanding of the innovations performance, benchmarking vs the market performance and vs. the initial sales targets.