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Introducing Private Label Products: A Retail Case Study

The Company

An international multi-line retailer with over 1,000 locations

The Challenge

The retailer planned to introduce a new line of private label products, but was unsure of how it would affect overall sales. The client also needed to know in which of the two merchandising formats would the launch be more effective. Format A was more modest, with a narrow range of SKUs, and Format B carried the company's entire product range.

The Solution

The retailer chose APT's Test & Learn™ software to conduct a rigorous analysis of the private label product launch and the associated merchandising options. The software found that the cannibalization impact of the Private Label product was smaller than expected, suggesting an aggressive promotion strategy that might spur additional sales of the new item. Test & Learn™ also identified a significant difference between merchandising formats A and B. Together, these insights helped the retailer customize its launch strategy according to the various needs of different stores.

The Results

The retailer’s Test & Learn™ analysis created actionable insights regarding its merchandising strategy. The client was able to roll out in-store signage and end-cap displays tailored to the unique needs of each store.
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