LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of category management solutions, has announced the completion of their latest success story on calculating price awareness score and ranking SKUs for a CPG company with the help of a category management strategy.
The company wanted to optimize pricing and improve profitability by identifying key value categories (KVCs) and key value items (KVIs). The key objectives they aimed to achieve through this engagement are mentioned below:
- Objective 1: The company wanted to devise an effective category management strategy to analyze product categories and increase category sales.
- Objective 2: They also wanted to identify infrequently bought products so that they could accurately rank SKUs within those categories.
- Wondering how you can identify key value categories and devise strategies to increase category sales? Request a free proposal to gain free access to our category management solution portfolio.
“Retailers and CPG companies today require effective category management strategies to reach customers, increase category sales, and maintain market dominance,” says Srinivas R, Procurement Manager at SpendEdge.
If you are finding it challenging to devise an effective category management strategy and increase market share, get in touch with our experts now!
Key findings and solutions offered
In collaboration with SpendEdge, the client – a leading CPG company in Europe – developed a robust category management strategy and identified 50 KVCs that accounted for more than 50% of the total sales. The solution offered helped them to:
- Analyze key value items within the KVCs to ensure that the final of KVIs covered a broad and representative set of categories.
- Calculate price awareness score and optimize prices depending on the competitive environment.
- Identifying KVCs is crucial for companies to optimize prices accurately. Request a free demo to access our web-based platform and manage multiple category spend areas.
Outcome: The category management strategy helped the CPG company to determine the products that often appear in baskets alongside other price-sensitive items by analyzing the transaction and loyalty-card data. Based on the frequency of purchases, that client calculated price awareness score and ranked SKUs within their categories. This helped them to benchmark their assortment and prices against competitors and increase profit margins by 11%.
To gain detailed insights into the category management solution offered by our experts, request more information.
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