In my example, using real data, here's what happened to "B" items next year.
- 6% graduate to "A" status.
- 58% remain in "B" status.
- 23% slump to "C" status.
- 4% slump to "D" status.
- 2% slump to "F" status.
- 7% of items are discontinued.
The key thing to analyze is the ratio of items that graduate to items that slump:
- 6% graduate.
- 58% remain static.
- 36% slump or are discontinued.
So that's a problem.
Items are in a continual state of erosion.
This means we need a steady diet of new/winning items.
And you, the marketer, are in a prime position to help move new items into winning status. Do your job and give exposure to new merchandise, starting today, in low-cost channels.