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PRODUCT PROFITABILITY OPTIMIZATION

Recommended the most profitable product and market distribution mix based on an extensive revenue and cost analysis for over 100 individual products.

Project Description

Identified fixed, quasi-fixed, and variable costs for all retail and industrial food products. Determined revenue for each product and evaluated product profitability by market.

Methodology and Approach

Resources

  • Internal cost reports and operating plans
  • Operations and marketing personnel
  • Nielsen data
  • Internal databases

 

Analysis

  • Financial modeling
  • Cost analysis
  • Market assessment

 

Recommendations

  • Identified those products not contributing a positive contribution
    positive contribution margin
  • Recommended the phase-out of those products

 

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Front Line Strategic Consulting, 1850 Gateway Drive, Suite 600, San Mateo, CA 94404

Phone: 650-525-1500 Fax: 650-525-2727