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One of the brands in the grocery category is not selling and has stocks left that are soon to expire. Specify all possible reasons for it and also suggest solutions for each of the reasons.

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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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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

1
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Clarify 

  1. Define " not selling" - was it selling before, now paused or never picked up? 
  2. What was the reason behind the introduction of this brand?
  3. Define " soon" - how much time, how much qyt, how many days of stock basis current sell rate, how much we need to sell to avoid expiry 
  4. About the category and brand 
    1. What is the customer trigger to buy? 
    2. What qty they buy and how frequently?
    3. Where do they buy from ?
    4. What factors decide where they buy from? 
  5. Any external factors - regulatory, GT-MT dumping or competition liquidating their inventory at rock bottom prices?
  6. How is the overall category doing- is the brand an anamoly 
 
Solve : Lets look at customer journey
  1. Awareness - how do these metric look compared to category and largest competitor 
    1. Impressions Served 
    2. CTRs
    3. Search rank trending 
  2. Consideration 
    1. Price & Offers
    2. Product Description 
    3. Ratings- customer and seller 
    4. Views given to brand and eventually bought by competitor : Co Browsing loss? 
  3. Purchase 
    1. Views 
    2. GV to sales
    3. % Delivery quality issues/ Customer complaints 
    4. % Abandoned Cart
    5. Time to deliver is worse off than promised
    6. Repeats % 
To solve 
- look at customer cohort which bought. Is the buying need different? How is the competition communicating and selling this product?
- We can do RTV or run flash sales basis saliency of time of day, day of week/ month for the category
- Adjacency push- display ads and search ads 
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Clarifying Questions:

1. Which grocery category? Snacks

2. Is it an online shop or mom and pop grocery? Online shop

3. 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

4. How soon will it expire? In six month

5. How much stock is left? Too much.

 

We can interview some people who bought other brands to figure out the exact reasons, but generally my assumptions are:

1.this brand's products are not displayed because of tech problems

2. this brand's products are displayed in the last page of products and no one see them

3. Very bad comments have been written about it

4. It has a higher price than similar products

5. The purchase option for this brand has a bug

6. Users boycotted this brand for some reason

Solutions:

1.communicate with engineering team to solve the problem

2.communicate with engineering team to show this brand's products in the first pages

3.read those comments carefully and remove them if they are unreal

4.negotiate with the its company to offer some discounts

5.communicate with engineering team to solve the problem

6.ask the company for advertisement and rebranding and also offer discounts

 

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Possible ReasonSolution
Brand not well known, brand perception has gone down Brand needs to improve/add content to promote its products as well as use advertising to promote its product. Provide suggestions to brand on how to improve its content based on similar listings (ex: keywords, images). 
Product category/categories too saturated Increase promotion of products by suggesting discount/sales that the product can join or ads that the brand can use to boost sales
New, emerging brands appeared that brand did not foresee so has extra stockHelp brand position itself against competitors through new content suggestions
External factors (ex: COVID-19 where products without certain attributes didn't sell as well)Offer brand to provide free add-ons to existing orders to help complete stock and promote product usage

 

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