CRS conducts many Line Optimization studies each year across varied industries. There are many uses and implications from a Line Optimization study. The primary use is to identify current products or attributes such as colors, sizes, etc. in a line that do not add incremental reach (candidates to delete) in an effort to streamline the line and reduce product overlap.
Another use of Line Optimization is to determine which new products work best together to maximize profits or sales while offering the fewest number in the line.
In both cases, CRS uses Total Unduplicated Reach and Frequency (TURF) Analysis to determine the optimal combinations to offer. This streamlined product line will not only be able to maximize sales and profits while ensuring variety, but will also create new product development opportunities.
An optimization model is created which helps identify the fewest number of products in the line that reach the maximum number of unduplicated consumers. We then layer in profit and/or sales information in order to optimize the line that yields the greatest profit or revenue.
We will often create an easy to use simulator so clients can conduct their own “what if scenarios” to determine what happens to profits and revenues as products are added or removed from the line.
If you would like a whitepaper on this approach, please let us know using the Contact Us form or call us at the office 770-246-0298.