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SUCCESS STORY

Perfetti Van Melle’s Sweet Supplier Success

Sweet Success through Better Retail Relationships

Working with a content management services partner that has the data expertise to help them deliver category growth…

THAT’S THE PERFETTEI VAN MELLE STORY.

As an innovative leader in the confectionary category, Perfetti Van Melle (PVM) believes in working closely with their retailer trading partners in order to create category programs that increase sales and margins for all parties.

In a category dominated by larger industry players, PVM recognizes the importance of building and supporting retailer relationships to help them drive more sales in the category.

THE CHALLENGE

PVM faced a particular challenge in that one of their category competitors, a major player, had suggested to a retailer the idea of creating new shelving arrangements to grow the retailer’s sales in the category. This would have had the negative consequence of reducing PVM’s shelf facings, potentially reducing their sales, but more importantly would not have served the best interests of the category for the shopper.

Their retailer trading partner requested an additional point of view from PVM to gain insights into the optimal shelf configuration. PVM looked to Syndigo’s Category Management Services team to access the capabilities they needed to analyze the data and develop an objective category view that would ultimately benefit both parties and the shopper.

After analyzing data and existing shelf space, Perfetti Van Melle, with Syndigo’s team determined that the competitor’s shelf sets removed some of the most profitable items in the category. By adding these critical items back on the shelf, the team saw a potential increase to the overall category sales.

— Perfetti Van Melle

THE SOLUTION

Syndigo’s expertise goes beyond core merchandising and online content. With nearly half a centruy of designing efficient floor, shelf and cooler arrangements for their retailer and brand clients, Syndigo is able to create and maintain the optimal product assortment sets for their clients.

A critical factor to successful in-store shelf and space management is accuracy. PVM entrusted Syndigo to ensure that the category item dimensions for ALL products were measured with laser-accuracy to ensure the optimal arrangements on shelf.

In addition, PVM wanted to certify the items on the shelves had the most profitable sales for their retailer partner. Using sales data from their scanning partners, Syndigo and PVM were able to calculate the best way to assemble the most profitable mix of products for their category.

Finally, Syndigo’s extensive library of more than 1,000,000 active consumer goods items made it easy to incorporate all product images to provide the retailer client with an accurate and easy means to re-configure their shelves.

THE RESULTS

After analyzing the data and existing shelf space, PVM, with Syndigo’s team, determined that the competitor’s shelf sets removed some of the most profitable items in the category. By adding these critical items back on the shelf, the team saw a potential increase to the overall category sales, while also incorporating a better mix of PVM and competitor items.

The Syndigo team also focused on item placement within shelves. By grouping a few items into new area on the shelf, the team was able to incorporate more SKUs, more effectively, to ultimately help their retailer trading partner gain more category sales.