INSIGHTS: A shopper Decision Hierarchy study of Italian Sauce captured new and unique product groupings that identified the changing nature of the category. Behavioral research verified the strong interaction between Store Brand and several Value Brands, the appearance of an upscale segment and the blurring of lines among brands due to deep promotional spending.
INNOVATION: Significant new approaches were developed for Assortment recommendations and Shelving to reflect the revised shopper segmentation of Italian Sauce.
• Assortment: both depth and breadth were adjusted to align with consumer trade-offs in terms of Brand, Flavor and Price.
• Shelving: new configuration optimized adjacencies based on brand cross purchases with focus on trade-up opportunities.
IMPLEMENTATION: Edgewood Consulting worked with the client's account teams to customize the approach by retailer. Ultimately several accounts agreed to test the new shelving strategy and adjust their SKU mix to evaluate the impact on category performance and profitability.