No room on the shelf? New research technique to change the way CPG companies make product range optimisation decisions

‘SURF’ from MMR Research Worldwide can identify the likely impact on sales of range rationalisation and extensions and help brands survive increasing retailer pressure to reduce SKUs

MMR Research Worldwide has developed a new range optimisation tool that helps consumer packaged goods (CPG) brands decide on their optimum product ranges in terms of both size and structure. ‘SURF’, standing for Steal and Unduplicated Reach and Frequency, measures ‘power to displace’ and sources of steal and calculates the predicted impact on sales of any change in the product line-up. This makes it an ideal tool for range extension, rationalisation and optimisation decisions, particularly for brands with multiple SKUs within the same category. Because it provides a more involved, choice-based process for respondents, feedback is more considered and therefore more representative of in-store purchase decisions. SURF significantly advances the current industry-standard method, TURF (Total Unduplicated Reach and Frequency) which relies only on ‘appeal’ to assess overlap and breadth of interest as a basis for ranging decisions. The technique was devised by MMR Research Worldwide in response to demand from its food, drink and personal care clients, who are experiencing increasing pressure from retailers to limit the number of SKUs stocked per range. “There is a real need for better, more detailed information to help facilitate accurate range selection decisions,” says Mat Lintern, MMR Research Worldwide managing director. “As well as delivering its primary results in the form of highly actionable potential change in sales figures, SURF answers important questions such as; from which product is an SKU stealing? How likely is a new SKU to cannibalise the existing range? To what extent are incremental sales driven by new users or increased frequency amongst existing users?” MMR has proven SURF with clients in savoury snack, breakfast cereal, baby food and personal care categories, where it has been adapted to suit the needs of small right through to the largest product ranges. It has been designed to be incorporated into existing concept and product testing protocols, allowing clients to maintain consistency of approach whilst only requiring a small additional outlay relative to an equivalent TURF project. The flexible approach can be used from the early flavour screening stage of product development, right through to range rationalisation for long established brands. While primarily created to support its CPG clients, SURF can be used to equal effect by retailers to aid their understanding of how to allocate shelf space. - ends - About MMR The MMR Group is an innovative research agency which provides creative and scientifically robust research for its global blue chip clients. The MMR Group comprises MMR Research Worldwide, specialising in the food, drink and personal care sectors; Qubiq, a leading-edge provider of interactive research in the FMCG and service sectors; HRW, leaders in healthcare market research; and UKFS, the one-stop solution for UK based qualitative and quantitative fieldwork. The MMR Group has developed a variety of unique research assets including Brandphonics® -- a new emotion-based approach to identify what influences consumer choice – an in-house sensory facility, and MMR Pulse, a food and drink trend-tracking information resource. Founded in 1989 by Professor David Thomson, the Group employs in excess of 100 people. It is headquartered in Oxfordshire, UK and has a rapidly growing business unit based in New York, US. www.mmr-research.com Press Enquiries Claire Dumbreck, Propel Technology, Bloxham Mill, Barford Road, Bloxham, Banbury, Oxfordshire, UK, OX15 4FF. +44 (0)1295 724130 / +44 (0) 7768 773857 claire@propel-technology.com MMR Group SURF_CPG app

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