Joint category business planning (Coffee category)

Joint category business planning (Coffee category)

Client Challenge

A $7.5 billion northeast-based retailer experienced coffee sales decline of over 6% over a recent 52 week period. This represented a 9% gap versus the rest of the market.

This performance gap required a new, comprehensive 3-year strategic plan for the category to address the customer merchandising approach and more accurate (and obtainable) financial objectives.

Radian’s Impact

Radian established a formal business planning process with defined roles for the manufacturers and retailer to better align and optimize category investments.

Developed a turnaround strategy including a three-year plan and detailed, optimal banner-level and store-level plan-o-grams.

Improved “shop-ability” by moving from a “Good / Better / Best” flow to vertical blocking throughout (mainstream and premium as well as vertical brand flow).

Identified opportunities in the market such as creating a distinct single-cup segment, additional single-origin, and organic items.

Significantly enhanced own-brands offering and positioning within the category.

Results

Achieved a +12% revenue and +28% profitability improvement in the category after the new business plan and shelf reset.

Produced weekly analytics and insights; comparing pre vs. post implementation impact in terms of units, sales, margin, and share of market changes.

Actively trained the Category Manager on category strategy development, interpreting data and consumer insights, and financial implications of category merchandising decisions.