Opportunities and Outliers: Finding New Revenue without a New Item Launch
Bedrock Key Takeaways
- If CPG vendors want to identify new revenue opportunities, they must look at the sales performance of existing products in a different way.
- Opportunity gap reports analyze retailer offerings to suggest where manufacturers might expand distribution or apply a price increase.
- Outlier reports compare sales velocity with the total number of locations carrying a product to determine where your item has an edge.
Finding new opportunities in the CPG market doesn’t always require a new product launch. More often than not, generating revenue is about getting more from your existing line-up — usually a new technique to defend your space, close distribution gaps, or optimize your promotional strategy. In all cases, identifying new revenue opportunities starts with looking at your sales data differently.
Bedrock’s data reports help you do just that. Our platform takes in your syndicated data and exports actionable visualizations and insights. Let’s take a closer look at two specific reports that make sure you’re not leaving money on the table:
Opportunity gap report
Opportunity gaps are the spaces within a brand line-up that you can fill by expanding coverage within retail categories. CPG analysts measure them in terms of your distribution within a given category or in relation to competing brands. Whatever the case, opportunity gaps point to unmet demand for products within a retailer that your brand could fill.
Bedrock’s opportunity gap report identifies these holes in terms of potential revenue. Let’s say you have a dairy-free yogurt, and you’re looking for new opportunities within the category. This report will analyze relationships between ACV, prices, sales velocity, and other metrics to find gaps in your current retail offerings. The result will tell you whether your yogurt has room to expand in terms of distribution or even a price increase. Whatever the results, you benefit from a richer understanding of your revenue opportunities.
Outliers refer to products where the sales performance differs at one storefront compared to the average performance. These results can be positive or negative, but what’s important is that it stands apart from other channels in terms of expected revenue. When outliers are consistent over time, they can tell us a great deal about local customers, promotions, and other factors.
Bedrock’s outlier report helps analysts by comparing sales velocity with the total number of stores carrying the product. This visualization takes the form of a quadrant map comparing your product with that of competitors. With this information, you can find competitors who are outliers at one location and present your item as a reliable alternative within that space. Alternatively, you can identify high-performing outliers and create new strategies to replicate that success in other channels.
Any CPG vendor can act on revenue opportunities or respond to outliers, but only if they know that they exist. At Bedrock Analytics, we use business intelligence and data visualization tools to give you a richer understanding of your category and spot emerging trends across all your markets and channels. These tools are expressly designed to be used by everyone on your team, regardless of their analytic skills, so you can focus on leveraging insights as effectively as possible.
If you want to see these reports in action, you can book a demo with us!