In light of the recent pandemic, many CPG manufacturers are reviewing their assortment and looking to simplify SKUs – this couldn’t be more relevant for global food, snack and beverage manufacturer Pepsico.
In this video, Pepsico’s European Head of Perfect Store, Paul Nash, discusses why assortment is an important execution lever and how they are looking to simplify SKUs.
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- Read Video Transcript
As a business, the big focus is how do we play a leading role in developing the growth of the category and essentially to do this, we know that we need to evolve with that with the digital age and the transformation that’s happening across the industry.
Arguably the assortment is the most important execution lever to get right. It’s the most tangible aspect of any business that is quite simply what the shopper sees on the store shelf. It’s the most important to get right. Also feel on the flip side, it’s probably the most complex.
The complexity not only lies in the proliferation of brands and products that are emerging on shelf, but also in the variation of flavors, pack formats, and packaging materials as well. As a business, given the importance of assortment, we’ve been focusing on how do we drive growth through simplification, which also ties into our response to COVID. What this means is as a business we’ve been looking at, how do we look at the hero SKUs? So these are the SKUs that have the highest potential to win with our shoppers and customers. These are the most important and most relevant and most productive SKUs that we believe will help the category to grow as well.