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CLIENT
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Our comprehensive
work showed that our client's unpopular products really had
very low consumer interest and that opportunities for increasing
volumes were also few. That being the case, the situation that
the client was in, made no sense at all, at least not from a
longer term profit perspective.
Our recommendations therefore, were for the client to:
a) cease coercing distributors into taking the less popular
products
together with the popular one, and
b) raise prices on the unpopular ones.
The effects were as expected. Distributors were once again free
to order (and receive only) quantities of what they needed,
while for a brief moment, profitability on the less popular
products actually rose. |
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