Case study: Category deep dive – Cheese

Company overview:

  • Top 4 UK Supermarket
  • Cheese category turnover £300m+
  • Mixture of leading brands and own label products

Business challenge:

The retailer was seeing significant decline in sales of cheese, both in terms of value and volume despite the overall market for cheese delivering growth. An in-depth category review was established through a ‘Cheese Hot House’ to understand category challenges align team on what steps needed to be taken to rectify performance.

Our approach:

  • Carried out a full benchmark of incumbent range with the market
  • Reviewed pricing and promotional effectiveness
  • Identified and implemented actions to fix ranging and pricing issues that were contributing to the sales decline

Value delivered:

  • New pricing and promotional strategy added +3.5% to total category margin rate
  • Within 6 weeks, volume sales increased +7%
  • Category LFL performance went from –4% to +2.5%
  • On shelf availability of KVI lines improved from 85% to 94%