User's Challenge

「I want to optimize the product lineup」

I am in charge of product planning at a general goods manufacturer with 80 employees. Our challenge is to review our product strategy; we have over 500 SKUs, and best-sellers are mixed with slow-moving items. I want to organize the lineup to improve the profit margin.

Selected Approach

Product Portfolio and Profitability Improvement Framework

Strategy

Organize over 500 SKUs from the perspectives of profitability and growth potential to identify products where resources should be concentrated.

Ideal when you have a large number of SKUs and want to visually understand which products are straining profits.

Other Candidates:SKU Slimming & Efficiency Matrix·Customer Value x Brand Alignment Analysis
01

Extraction of Categories and Products for Analysis

To efficiently organize over 500 SKUs, first list the "product categories" that will serve as the units of analysis, as well as "representative SKUs" that you feel are particularly problematic.

Extraction of Categories and Products for Analysis - Canvas

AI Insight

Key findings from this step

02

Evaluating Products by Sales and Profit Margin

Place the products listed in Step 1 on two axes, "Sales Volume" and "Profit Margin," to determine the priority for maintenance, improvement, or withdrawal.

Evaluating Products by Sales and Profit Margin - Canvas

AI Insight

Key findings from this step

03

Detailed Evaluation of Low-Profit, Low-Sales Products

For products identified as "low-profit, low-sales" in Step 2, we will evaluate them in detail from the perspectives of maintenance costs and inventory risk to clarify the priority for consolidation.

Detailed Evaluation of Low-Profit, Low-Sales Products - Canvas

AI Insight

Key findings from this step

04

Formulating an Action Plan

Based on the evaluation results, determine the status of each product (continue, improve, or withdraw) and the specific execution steps.

Formulating an Action Plan - Canvas

AI Insight

Key findings from this step

Summary and Next Steps

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