RETAIL CASE STUDY GROUP 3

FRESH & NICE SUPERMARKET

• Assistant Manager Merchandising-Health and Beauty Category

• Health and Beauty category received maximum number of SKUs and
phaseouts.
• 1500 SKUs to be accommodated in 6 bays.
• space constraint for products.
• large number of launches – which products to keep.
• 117 products added in last 2 months.
• Low margins.
• No place in store.
PROBLEM STATEMENT

New Product Optimal Product Mix

Introduction Policy
 APPROACH

• Cumulative sales and Gross Margin

• Merchandising policy – Broad & Shallow
• First analyze the cumulative sales value
• List out cumulative sales value percentage
• Classify sales of the products as a percentage of cumulative sales value(Up to 50%,
50%-80% and above 80%).
• Check the individual margin against average margin from selected out products.
• If the individual margin is less than the average margin, remove the product from
the inventory.
 CATEGORY ROLE MATRIX

Flagship Cash Machine Maintain & Grow

Avg GM %
GM%

Core Traffic Under Fire Rehabilitate

Cumulative Sales (%)

NEW PRODUCT INTRODUCTION POLICY

PROMINENT PLAYER HIGH MARGINS

(CORE TRAFFIC OR FLAGSHIP) (CASH MACHINE OR FLAGSHIP)

INNOVATIVE PRODUCTS NICHE PRODUCTS

(CASH MACHINE OR MAITAIN & GROW) (MAINTAIN & GROW)