Analyses of Market size  for Ready to eat food items for one of our clients.

                                                          ANALYSIS OF PROJECTED SALES/ MONTH (VOLUME) USING HYPOTHESES- THROUGH SHOPRITE

Financial Optimization Tree

Hypotheses – It is financially viable to go ahead and do massive turnover

• Have to focus on product awareness- On & offline marketing, merchandising, sampling, consumer promotion
• Analysis of competitors, substitutes to set the right price
• If margin is contracting needs to optimize variable cost
• Increasing margin to ShopRite to get gondola and more shelf space

Cons to work with private labeling

• Saving cost on marketing and promotion
• Peace of mind
• Relatively high profit margin
• No risk of brand damage
• etc

Cons to work with private labeling

• Risk of losing business to competitors
• Little awareness of market dynamics
• No or limited sales growth
• etc

Recommendations

• Analyze African market for its further optimization in terms of sales turnover
• Sell Shoprite your own brands – Shoprite buys directly
• Selection of go to market strategies
• Implement brand awareness strategies
• Invest on marketing in local markets
• Optimize variable costs
• Analyze substitutes and competitors to set right pricing 

Click for Download  Market Sizing and cost optimization