End caps and portable merchandising racks are critical to the sales performance across many CPG product categories. In the past, the design, development, and procurement of these high-cost items were accomplished within each business unit of our client’s brands or categories. This resulted in a higher cost, as well as less flexibility and opportunity for application across the enterprise as the final designs were often brand or category specific
Client Case Study
Innovative, Modular Redesign Drives Rack Rationalization Results for CPG Giant
IMS conducted an extensive audit of the existing client rack program across business units. As a result of the audit, IMS recommended 12 modular and adjustable rack designs with additional headers and wings for efficiency.
Our teams implemented dress-up kits by category and brand for each change-out program, or by season, or item category creating a multi-purpose rack for the field.
The rack rationalization solution decreased unit costs by spreading production across fewer SKUs and leveraging volume discounts at higher production quantities per unit.
Additionally, overall annual rack volume decreased due to the re-usable design which could remain in-store, which also made it easier for field teams to move units within the store or simply re-purpose them with the new period’s dress-up kit. Kit refreshes are now significantly low cost (relative to new racks) and change the look/feel as needed by brand or promotion