“Range Rationalisation” usually makes FMCG suppliers nervous.
Fair enough: Unplanned deletions can have a major impact on in-year sales delivery, factory volumes, inventory, and even brand support plans. However, a proactive, category-centric range rationalisation process can have positive outcomes for suppliers alongside retailers, creating more efficient ranges, improved shopping experiences, greater impact of innovation at shelf and streamlining cost and management effort for both parties.
Whilst others argue, wheel and deal to try to rescue each and every vulnerable SKU, stepping back to consider the bigger growth picture, and helping your buyer to navigate through the process, could help you become a standout partner and supplier of choice within your category.
Remember, retail buyers are also tasked with achieving profitable growth within the operational challenges they’re faced with, so they will be anxious about making the right decisions too! Working together during a rationalisation period can be a great partnership opportunity.
So, what are the keys to successfully navigating range rationalisation?
1. Align on where profitable future growth will come from
2. Lean-in on uncomfortable internal conversations
3. Rationally evaluate through the lens of category shoppers
Shape the Future, don't be Shaped by It
Whilst this approach won’t save all your SKUs in your portfolio today, it does give you a clear runway for future range development and set you up for longer-term range review success.
The earlier you can embark upon an aligned strategic category approach with your customers, the better. Range reviews are busy and stressful times for retail buyers and if you've left it until the review, you've left yourself little time to explore and align perspectives this time around. However, Strategic Category Management in FMCG is a journey, not a destination, and if you haven't started yet, there is never a better time than now.
Why Real World Marketing?
Our experienced consultants and trainers are FMCG leaders who have guided some of the brightest minds in our field. With deep-rooted expertise in the consumer goods industry, we are well-placed to support you and your teams as trusted coaches and mentors, tailored to your unique requirements.
If you need assistance with how to get started with a Category Strategy, please reach out to one of the team at Real World Marketing.
We’re here to help you navigate complexity and achieve your business goals.