One of the brand in grocery category is not selling and has stock left which is soon to expire. Specify all the possible reasons for it and also suggest solutions for each of the reasons.
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in Problem Solving by (32 points) | 103 views

1 Answer

+2 votes

First I will ask clarifying questions to better understand the situation.

Then I will brainstorm possible reasons and suggest solutions for each reason.

Clarifying Qs

1. Which grocery category? Dairy, fruits/veggies, meat, canned goods, beverages, cereals, snacks (cookies & chips), breads, or anything I missed? Snacks

2. Which brand in that category? Oreos

 3. Where is this grocery located? What country, state, city, neighborhood (urban, suburban)? Mom and pop grocery store in a suburban neighborhood

4. How long has the brand "not been selling?" Are other brands in this category or in other categories not selling that I should be aware of? Two months, no other brands are suffering

5. How soon will it expire? In a year, but it should have sold already. Packaged snacks have a lont shelf-life.

6. How much stock is left? Too much.

7. Any internal factors I should be aware of? Oreos are on a high/low/unaccessible shelf, price unusually high, other items in that category better featured or at better prices, new competitor for Oreos, new shop management? No

8. Any external factors I should be aware of? Crime in shop local, inclement weather conditions, new grocery shop opened nearby, change in consumer preferences? Yes, trend towards healthier foods

Brainstorm possible reasons and suggest solutions for each reason

Reason: Global trend towards healthier foods, people want to eat nutritious snacks and are consuming less junk food.

Solution: Follow the trend, do not fight it. Offer Oreos at a discount to get rid of them quickly before the expiration date or give them away for free. 

Moving forward, work with distributers to stock more healthy snacks and less unhealthy snacks to meet consumer needs. To stay on top of trends in the future, poll consumers periodically and stay informed of current events by reading news, watching TV and observing. 

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by (48 points)
+1

Clarifying questions were awesome..I thought more reasons and solutions would make this a great answer.

Probable reasons and solutions:

1) I would like to understand the user personas buying this product and quickly look at the data - because its a low involvement product and sometimes there will be no trend - whether these users shifted to similar products in other brands or new product release from same brand (Cannabalization) -  surge in those products revenue from same user persona

Solution: Bundling, discounts, see the averge ticket size of that particular user persona and offer giveaways 

2) You already mentioned about shelf space - I would like to understand whether there is any change in the shelf space for that product or is there any change in the customer journey due to shop remodelling / renovation

Solution: If it is so, I will try to do A/B testing by changing the location and also I will place this product at the check-out counter to have a look by customers before they finally move out of the shop

 3) Any negitive news (like Maggi) recently popped out about that product

Solution: Discouts heavily by talking to manufacturer or ask them to recall the product

Let me know the feedback if any

0
Good answer Bella. Also, nice/valid points made by Krishna. One thing to notice is that if there is a healthy-eating trend picking up, why is it only impacting Oreos? - This surely means that the sales of Oreos are getting impacted by some other internal/external factors as well - And this is where Krishna's suggestion of AB testing will come handy.
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