Product lines represent a constant trade off between variety and volume. You want the correct number and selection of products in a line to maximize revenue while minimizing SKUs.
Faced with limited shelf space and retailers' constant effort to optimize category mix, manufacturers need to be smarter about their line composition and provide retailers with a research-based rationale for taking on new products.
Line optimization can tell what SKU combinations will produce the greatest sales, share, or profitability in light of the competitive set. For instance, a regional retail chain wanted to develop the appropriate line of store-brand soda pop. Potential varieties included cola, diet cola, cherry cola, root beer, lemon lime soda, orange soda and grape soda. By having consumers take part in discrete choice exercises, Affinnova was able to identify the volume of sales that would be produced by different configurations of the store-brand soda product line.
What makes our line optimization unique?