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Product Management Root Cause Analysis Question: Grocery brand facing sales decline and expiring stock

One of the brands in the grocery category is not selling and has stocks left that are soon to expire. Specify all possible reasons for it and also suggest solutions for each of the reasons.

Problem-Solving Data Analysis Strategic Thinking Retail FMCG Supply Chain
Root Cause Analysis Supply Chain Inventory Management Grocery Retail Consumer Behavior

Introduction

The grocery brand's stagnant sales and impending stock expiration present a complex challenge requiring immediate attention. I'll approach this issue systematically, identifying potential root causes and proposing targeted solutions. My analysis will cover various aspects of the product lifecycle, from supply chain to consumer behavior, ensuring a comprehensive evaluation.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • What's the specific timeframe for the sales decline?

  • Has there been any recent change in pricing or positioning?

  • Are there any particular SKUs or product lines affected more than others?

  • How does this brand's performance compare to competitors in the same category?

Why these questions matter:

  1. Timeframe: Helps distinguish between seasonal fluctuations and systemic issues.
  2. Pricing/positioning: Recent changes could explain the sales drop.
  3. SKU specifics: Identifies if the problem is widespread or localized.
  4. Competitor comparison: Determines if this is a brand-specific or industry-wide trend.

Hypothetical answers and impact:

  1. Sales decline observed over the past 3 months. Impact: Suggests a recent shift, not a long-term trend.
  2. No significant changes in pricing or positioning. Impact: Rules out pricing as an immediate cause.
  3. All SKUs affected, but perishables more severely. Impact: Indicates a broader issue, possibly related to inventory management.
  4. Competitors showing stable sales. Impact: Points to brand-specific problems rather than market-wide challenges.

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