Striking the right balance on assortment mix
How Land O'Lakes regained distribution with data deep-dive.
During Kroger's KOMPASS review process, Land O'Lakes lost distribution of three small tub butter items as it was believed these SKUs were duplicative of the larger sizes that we also on the shelf. Shortly after the new planogram was implemented, the team recognized butter tub households declined by 400k.
Land O'Lakes leveraged their 84.51° Stratum Platinum subscription to understand the common purchase behavior metrics along with Trial & Repeat, Exclusivity and Sourcing to understand the decline the segment was experiencing. Through this work, Land O'Lakes learned the small butter tubs provide customers with an entry point to the segment along with serving Kroger's more price sensitive households.
“Leveraging the 84.51° Stratum Platinum subscription demonstrated the importance the Land O’Lakes Small Tub line was to the shopper and made the difference in regaining distribution. The 84.51° Stratum tool showed that the trial, repeat, and exclusivity were strong, which created a robust story to regain distribution at Kroger.”
*Robin Malloy, Senior Category Manager, Land O’Lakes *
Kroger reintroduced two of the items back into limited distribution. After seeing strong trial & repeat, Kroger expanded the distribution to additional divisions. The reintroduction of these items resulted in an increase of $2.9MM annually for Land O'Lakes.