Barry Schwarz in his 2004 book “The Paradox of Choice - Why More Is Less” outlines the negative impact that too much variety can have on consumer’s decisions especially in terms of their overall utility. Furthermore, the 80-20 rule, which is observationally evident in many CPG categories, underlines the fact that the majority of sales are driven by a small portion of the items carried
Manufacturers must constantly innovate their product portfolio in response to changing market trends and patterns in order to capture share of wallet and mind. The challenge then lies in maintaining a lean, efficient portfolio that not only resonates with shoppers but also aligns with retailer strategies and needs.
Kantar Retail’s portfolio rationalization capability SKURat enables brand and category managers to drive the right decisions regarding the size and composition of their portfolio of products.