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Thursday, May 27, 2010

'SKUs me: category reviews, sku rationalization & private label

Category reviews are increasing in frequency and intensity. And for good reason.

The number of new items introduced annually has increased tenfold vs. a decade ago. But shelf space has not.

Private label brands are gaining significant momentum. 35% of shoppers are trying store brands for the first time and 90% plan to remain loyal once the recession is over.

Unless you can make the case for consumer demand for your product, defend its position vs. leading competitors---and now store brands---and support claims for uniqueness and value, you are at risk.

Increasingly, retailers are looking to keep the top two brands in a category and add their own house/private label as a third. If you're not in the top two, you need to find out why not.

Chances are, your item has untapped consumer demand and more potential than you or the trade have been able to tap. Certify that demand and identify ways to close the gap between you and the top two.

Don't hesitate, though. This is a fast-moving initiative.
Skuuber is fast moving for this very reason!

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