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At a glance

The Client
A leading company in the beer industry.
The Objective
To develop a PPA strategy that would simplify the product portfolio, extract more value, and better align with consumers, ultimately driving profitable growth.

Challenges

  1. Broad set of SKUs set against significant cost price inflation and a relatively low margin per litre.
  2. Lacked the resource and expertise to make recommendations to reshape their portfolio.
  3. The need for accelerated insights to align with internal strategy timelines.

Solution

The Acumen team determined the optimal selection of products to meet consumer needs at prices they are willing to pay, in order to drive profitable growth.

Client journey

  • Situation analysis – Develop deep understanding of pressures & key performance drivers of the existing PPA & defining picture of success
  • Pack Price Portfolio assessment – Identify opportunities to address Consumer/Shopper needs
  • PPA optimization opportunities – Identify the opportunities to extract more value
  • Validate PPA hypotheses – Assess business impact for each of these identified opportunities
  • Build business case – Design PPA strategy
  • Prepare implementation – Define a multi-year implementation plan & set up tracking scorecard / review process
  • Selling story – Create internal & external selling stories to support the implementation

Project outcomes

Specific guidance on removing sub-optimal SKUs and promotions
Provided deep analysis of shopper behaviours and switching tendencies, so areas of strength and weaknesses are known
Aligning pack sizes to occasions and identified consumer trends, leveraging momentum for “triple win” outcomes
Focused, channel-appropriate range restructure, providing clear “good – better- best” signposting to shoppers
We built a pressure-tested delivery plan to activate initiatives and lock in increased benefits of +27% profit

"The work and insights were incredibly powerful and have given us a lot to consider and implement. The insights were at the right level—principles we can take multiple actions against, rather than niche specifics we will only use once."

UK RGM Director