The Value Add – Simplifying a Product Range to Increase the Value of Your Offerings

Following a beneficial partnership on a wide range of products with a Mexican supermarket, Amrosia, in tandem with our partner sought to reevaluate the value of the manufactured items being supplied in order to generate more revenue for both parties, while increasing the value that the supermarket was able to offer their customers.

Upon completing research to identify opportunities to add value to the customer’s product orders, the team at Amrosia found several areas where the customer could leverage existing assets, as well as by adding some new ones to increase revenues and further promote their business by increasing their value proposition. These areas included finding products that were in line with the supermarket’s existing brand, improving existing successful product offerings and promoting them accordingly, focusing on trending markets, laying out a timeframe through which to order seasonal items and finally, removing items that were low revenue generating, expensive and time consuming products as well as buzz items from orders.

Based on our research, we found that by adding products to the chain’s existing brands, they would be able to leverage the value of the brand to increase sales while providing higher value products that met consumer needs and ultimately driving brand awareness for the business as a whole.

At the same time, by improving, where necessary, and further promoting previously successful ‘big ticket’ products, the brand was able to save on the costs of sourcing new items, having ordered them before, mitigate the risk of stocking a new, unproven product and further drive revenue.

We also saw an opportunity for the company to take advantage of trending markets in the automotive, telecommunications and consumer electronics sectors, to further expand their product portfolio and by positioning themselves to benefit from the organic rise of the market.

Being able to predict future, seasonal orders also allowed our partner to save critical lead time and capital by making orders in a timely fashion.

Finally, by illuminating items that were not generating the desired revenue, as well as those items that were both heavily time and cost consuming and short term “buzz items” enabled the business to save costs and speed up delivery times of those items proven to generate revenue.

Following Amrosia’s research, broached with our partners respectfully, many of our conclusions were taken on board and implemented, allowing our partners to increase revenue while saving a great deal on the cost of package design and marketing for products that were low revenue or short term revenue generating items.

This was ultimately very beneficial for both parties, giving our partners increased revenue, enabling them to further benefit from their relationship with us.

 

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