The challenge permalink
This new brand had skyrocketing sales at launch with over 16,000 retail doors in 3 months. After the initial surge, however, growth fell off, velocities slowed, and retailers began to drop the product from plan-o-grams.
The Virtuoso approach permalink
Our analysis identified an issue with the sales incentives that rewarded expansion into new doors with no accountability to drive velocities in current doors.
We renegotiated promotional plans with distributors to reduce pantry loading and low compliance during promo periods, and rationalized SKU lineup to eliminate exposure to low performers and invest in stronger products. We also initiated a study to understand consumer perception to inform new product development.
The results permalink
- Cost-savings from SKU rationalization and SG&A efficiencies lowered the breakeven point of the business
- Pulling back on national footprint to focus on performance in the brand's 'backyard' helped rebuild confidence with retailers
- Overall business improvements led to a round of financing from the company's original investors
Now is the Time permalink
Virtuoso Strategic Group is a boutique consulting firm formed to deliver extraordinary value to its clients. We pride ourselves on alignment with the fortunes of our clients and an unwavering commitment to their success. We welcome you to start the conversation today.