Retailers are seeking to drive dramatic growth by introducing new products and services while aggressively and proactively paring down or deleting low profit and non-strategic categories. This work must be done at the highest level in the organization in order to fully capture the cross-functional impacts and ensure solid execution. This work requires exacting research, shopper insights and absolute objectivity. Retail winners are architecting the portfolio of tomorrow today and constantly pushing up store and ecommerce sales productivity.
What We Do
TPG’s team of retail merchandising and marketing experts who take a fresh and incisive look at the productivity of product categories as well as retail services from the shopper and financial perspective. Portfolio Optimization identifies new revenue streams that extend the retailer’s value proposition to their most valuable shoppers while also driving increased share of wallet and sales and profit per square foot and creating competitive advantage. A partial list of our portfolio optimization consulting services include:
- Shopper Opportunities Study: Blueprint of the existing most valuable shopper (MVS) and identification of highest loyalty categories to seek new “adjacent” categories or services that can be added for profitable growth. Work identifies the shopper ‘Value Profile’ and need states where potential expansion into new products and services could exist.
- Opportunity Mapping: Moving from one Big Idea to Multiple Platforms, from Shopper Needs to Opportunity. This work uses “Vector Maps” of multiple retail platforms (concepts/revenue streams) which are developed during ideation sessions.
- Value to WIN: For select platforms, From MVS perspective, defining and force ranking factors that create shopper value. Additional work is done to forecast the cost, scale and overall benefit to adding key concepts to the retail portfolio.
- Platform validation testing: Using real time customer feedback and concept testing to generate the final list of pressure-tested platforms (categories, products, services) to extend value, deepen value and satisfy identified need states
- Mobilization Plan: An implementation plan that includes a critical path with milestones, stakeholder enrollment, external and internal communication and “activation” owners.