Services
Assortment Optimization Maximize sales and margins with the optimal assortment of SKUs
In today’s competitive retail environment, understanding the shopper’s decision-making journey is paramount. Quantum Leap places the shopper at the core of every strategy, tailoring our approach to enhance the clarity and navigability of product categories. This focus is essential as shoppers, overwhelmed by choices and pressed for time, typically decide within seconds and often make purchases impulsively, directly at the shelf. Our strategic optimizations in product assortments and shelf positioning are designed to maximize shopper engagement, drive sales volume, enhance customer value, and increase profitability—all aligned with the shopper decision tree.
For Manufacturers:
How can we maximize volume, margins, and sales per point of distribution (SPPD) across our product range?
how can I maximize my SKU weighted & numeric distribution ( WD / ND ) to grow both my Value & Volume Market sahre (VMS%)
What strategies can increase our products’ visibility and presence on shelves?
Which products should be discontinued to streamline our offerings and improve category management?
Where are the most substantial growth opportunities within the market?
How do new products impact existing lines in terms of incrementality and cannibalization?
How can we strategically drive sales across the entire category while considering the shopper decision tree?
What is the ideal assortment for our category and brand to enhance shopper experience and maximize impact?
For Retailers:
How can we attract more customers and increase the frequency of their visits to increase basket size in value & Volume.
What strategies can be implemented to boost customer loyalty and encourage more frequent shopping, thereby improving return on space (ROS)?
Which product categories contribute the most value to our stores?
Which categories should be expanded or reduced to optimize our product mix and profitability?
In which categories should we introduce or expand private label offerings to better align with the shopper decision tree?
Quantum Leap’s Assortment Optimization utilizes Dynamic Competitive Modelling to meticulously predict and respond to market demand shifts. This data-driven approach ensures significant enhancing to the shopping experience and maximizing category sales. Our sophisticated analytics provide manufacturers and retailers with the crucial insights needed to optimize shopper frequency, improve category clarity, and achieve substantial growth in both segment and overall category performance.
Price Pack Architecture Optimize product variations to improve margins and grow category share
Consumers engage with products differently depending on their shopping occasion and needs. For instance, the choice of pack size, channel preference, and price sensitivity can vary dramatically between a routine monthly stock-up and an immediate consumption scenario or when purchasing for travel. Price Pack Architecture (PPA) is a sophisticated analytical methodology that enables brands to align their product offerings with consumer expectations and willingness to pay, ensuring the right mix of product attributes at optimal price points. This strategic approach leverages consumer insights to drive innovation and align product features with market demand.
Strategic Questions for Price Pack Architecture:
What price are consumers prepared to pay for the current features of our products?
For which product features or benefits are consumers willing to pay a premium?
Is the premium sufficient for the convenience provided by smaller pack sizes?
Which consumer segments are most likely to be drawn to new product offerings?
How should new products be priced to maximize sales across the entire brand portfolio?
What is the competitive interplay between new products and existing ones?
To what extent will new products cannibalize sales from the current portfolio?
Quantum Leap’s Price Pack Architecture solution employs either Discrete Choice Modeling or Dynamic Competitive Modeling to help brands fine-tune their pricing strategies and product configurations. This enables brands to drive growth and strengthen their value proposition to consumers effectively.
Key Features & Benefits of PPA:
Strategic Price Pack Innovation: Utilizing insights from PPA analysis, brands can refine key attributes within their existing product lines, optimizing for higher margins and cost-effective innovations. This strategic focus facilitates quick wins without the extensive time and resource commitment typically associated with new product development.
Identify Optimal Pricing Across Channels: PPA empowers companies to pinpoint the most effective pricing strategies across different sales channels, tailoring product configurations to meet the diverse needs of various consumer types and purchase occasions. This targeted approach helps attract new segments of consumers previously beyond the reach of traditional marketing efforts.
Confident SKU Management Decisions: With PPA, companies can make well-informed decisions regarding SKU continuance, discontinuance, or alteration, identifying opportunities to enhance margins, attract new customers, and expand category growth.
This comprehensive approach positions Quantum Leap at the forefront of market innovation, enabling brands to adapt dynamically to evolving consumer preferences and maximize their competitive advantage in the marketplace.
Optimize pricing and trade promotions, always-on analytics
Our advanced analytical tools offer real-time insights into the dynamics of pricing and promotional strategies, ensuring that your brand remains agile and responsive to market changes.
Key Analytical Questions:
How responsive is my product group or brand to pricing changes?
What are the volume and value impacts of a price increase or decrease?
How effective are my in-store promotions, such as features, displays, and combination strategies?
Which promotional mechanics yield the highest sales volume and value?
To what extent do my brands cannibalize sales from my own product portfolio?
Looking to refine your pricing strategies across key channels and accounts, aiming to understand price elasticities and determine the optimal approach to either align with or diverge from competitors’ pricing tactics?
Solution: Quantum Leap developed a sophisticated pricing simulator to project the effects of price adjustments on volume and value for different Promoted Price Groups (PPGs). Our analysis encompassed:
Assessing price sensitivity across various retailers, both offline and online, and examining price interactions between these channels.
Analysing the impact of in-store promotions and enhanced merchandising support.
Evaluating competitor pricing effects on sales and formulating strategic recommendations regarding competitive pricing strategies.
Impact:
Optimized Promotions: Our analytics enabled the optimization of promotions to maximize ROI across brands, customers, channels, and geographies. The insights revealed that potential volume losses from price increases could be offset through strategic in-store promotional activities.
Through Quantum Leap’s Experts driven analytics, brands can confidently navigate the complexities of market dynamics, optimizing pricing and promotional strategies to drive sustainable growth and competitive advantage.
Our prowess extends to transforming Electronic Point of Sale (EPOS) data into dynamic growth strategies and initiatives, crafted to bolster market share and foster growth. With a suite of comprehensive services, we deliver a spectrum of analytics that informs and empowers:
Market Share Trends: We decode the dynamics of market share to identify trends and fuel growth strategies.
Promo & New Product Analysis: Expert evaluation of the effects of cannibalization and incrementality propels our clients’ portfolio to new heights.
Rotation Analysis: Our insights into sales per point of distribution (SPPD) and stock holding (SHISH) optimize inventory turnover and profitability.
Gap Analysis and White Space Identification: We reveal untapped opportunities and guide clients to capitalize on them.
Store Level Action: We pinpoint underperforming stores and devise targeted strategies for turnaround.
Pricing Analysis: Our comprehensive price point assessments underpin profitable decision-making.
Executive Summaries: Each department receives tailored insights for strategic alignment and action.
Sell-In – Sell-Out Analysis: We balance inventory flow to enhance the supply chain efficacy.
Tail Management: Our strategic analysis ensures product assortments are lean and performance-driven.
CATMAN Selling Stories: Engaging narratives that sell, backed by data-driven insights.
Unified EPOS Analysis: A harmonized view of key account data provides a holistic perspective of the modern trade landscape.
Our methodology is engineered to afford our clients a complete 360° outlook, delivering the critical edge required for competitive dominance across the Middle East & Africa.