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To solve the problem, THE MARKETING ANALYSTS offers proactive marketing research techniques to determine if the amount of differentiation of a new SKU offers incremental value. This type of research provides extremely valuable results when planning a SKU based on new flavors, colors, scents, sizes, etc.). Our marketing research techniques provide answers to questions like "What is the best set of product combinations (SKU's) that will maximize profitability?", "What is the most efficient combination of SKUs to offer that maximizes the differences between SKU's and avoids perceived similarity?" and "What should the priority be when offering new SKU's?" Most importantly, our approach provides manufacturers with the answers they need before investing in product development and marketing launch strategies.

A mid-sized manufacturer of HVAC equipment was experiencing flat sales and profitability. A small number of items in their product line contributed to the bulk of the company's unit sales and profitability. The slow movers contributed to manufacturing and supply chain inefficiencies. Solution: An analytical marketing research study designed for customer focused product line rationalization was conducted by THE MARKETING ANALYSTS. The findings from the study identified a number SKU's where customers saw little product differentiation. As a result, the manufacturer was able to reduce the number of SKUs in the product line without upsetting their customer base. In addition to improving profitability, THE MARKETING ANALYSTS developed new product development procedures that the company adopted to prevent future product proliferation.