Dr Pepper Snapple category optimization gains big results

Category optimization not only impacts the customer loyalty, it enables collaboration between CPG and retailer partners to increase revenue.

Dr. Pepper Snapple Group logoBACKGROUND

With a brand heritage spanning more than 200 years, Dr Pepper Snapple Group’s portfolio includes more than 50 brands and hundreds of flavors of carbonated soft drinks, juices, teas, mixers, waters and other beverages, enabling them to compete across all major beverage categories. Dr Pepper Snapple Group has an annual revenue of over $6 billion, making it a Fortune 500 company.

CHALLENGE

While beverages such as waters, teas, sport drinks had been growing within the category, demand for carbonated soft drinks was in decline.  With the pressure on the center store already resulting in retailer partners actively reassessing what should populate this important retail floor space, Dr Pepper needed a solution that could help identify category growth opportunities and boost retailer revenue for new and traditional product lines. This also included the need to protect and grow their own share of shelf whilst delivering objective category performance focused recommendations.

SOLUTION

Having reviewed many other vendors, Dr Pepper Snapple Group ultimately chose sheld space planning, and in particular its aisle optimization technology.

“We got the results we were looking for, for us and the retailers.
 
Symphony RetailAI also gave us great support, not only using the tools, but also going to the retailer with us and offering a very unbiased view, which the retailers loved.
 
By using aisle optimization technology, we have increased our margin dollars by $1.4 million.”

John Williams, Director of Category Management, Dr Pepper Snapple Group

BENEFITS

Since deploying the aisle optimization technology, Dr Pepper have not only seen improved collaboration with their retailer partners, but also tangible results from project implementations. One of these projects was completed at a West Coast retailer, and after 1 year both the retailer and Dr Pepper Snapple Group have seen benefits:

  • Retailer: category growth across all beverages, allowing them to outpace competition
  • Dr Pepper Snapple Group: increase in margin dollars by $1.4 million