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HRCP Case Study: Retail Relief

Situation

A leading national over-the-counter drug brand was suffering from some retail pain points that were hampering growth. Its category was poorly defined at retail, where the shelf had become buried with too many SKUs and too many brands. In the face of these challenges, the company had no defined role for trade spending. Meanwhile, its retailers were starved for business building strategies.

Challenge

Henry Rak Consulting Partners was asked to develop both a retailer shelf management strategy and a national trade promotion strategy. In addition, HRCP was tasked with developing comprehensive presentations for the top five customers, representing half of all brand volume nationally.

HRCP Advantage

Based on its Consumer Decision Tree, Pricing Strategy and Optimal Assortment analyses, Henry Rak Consulting Partners:

Clearly defined consumer behavior, finding that shelf strategies were not aligned with actual consumer shopping behavior.
Provided a fact-based customer strategy, including shelf flow-gram and assortment and rationalized SKUs, properly aligned with consumer usage.
Recommended trade promotion changes, driven by consumer behavior and clearly identifying trade promotion’s role with the customer.
Developed sales-ready presentation to help retailers understand the purchase behavior driving category change, outlining category opportunities, with price/promotion principles, assortment direction, and other key performance drivers.

Results

Changes to trade promotion generated an improvement in ROI.
Top 5 customers adopted recommended shelving plans.
Based on HRCP recommendations, Wal*Mart is providing category movement and in-depth promotion analysis for shelving plans.

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Competitive Frame:

Identifying the sources of growth

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