CHALLENGE: Various leading CPG (Consumer Product Goods) companies: two Beverage, one Beer, three Snack, and one Smokeless Tobacco companies, hired BrightStar to evaluate the financial relationship with their Convenience Retail Chain customers.
Specifically, they wanted to understand how valuable each retail chain was versus the concessions they provided for retail space.
METHODOLOGY: We created a proprietary model profiling the Top 100 Convenience retail (The BrightStar 100) chains to reflect which were most profitable to each of the various CPG companies.
RESULT: The CPG companies each greatly revamped their economic relationship with each of the Top 100 based on the application of our financial and business value model.
For example, the top ranked chain retailer for 3 different CPG companies ranking dropped from #1 to #’s 15, 21 and 29 respectively in the BrightStar model. In essence, the top chain retailer in this example was given the greatest financial concessions simply based on the number of retail outlets they had nationwide.