The Math Behind Pivoting Well

Pivoting has and will continue to be about selecting 3-6 hero UPCs amidst your current mix and pivoting the strategy for growth to those UPCs. The investments will all head toward supporting these hero UPCs. A managed removal of the others becomes something you can use simple planning math to accomplish.

After locating your HERO UPCs, the ones growing velocity organically, the math to manage a pivot is as simple as a simple Excel table.

  1. Set up an Excel table with all your UPCs as rows and 4 years of monthly columns or 13 retailer periods
  2. Hero UPCs get set to 6% period-over-period growth
  3. Phased delisting of small UPCs over two years or so to minimize harm to topline growth
  4. Declining UPCs get set to existing slope of velocity decline until they hit the buyer’s floor velocity

If this intrigues you, please join us on Feb. 9 for my Pivoting for Exponential Growth webinar.

Dr. James Richardson

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