---
# Category assortment optimization with planogram drives higher retail sales
**URL:** https://www.sigmoid.com/case-studies/category-assortment-optimization-with-planogram-drives-higher-retail-sales/
Date: 2024-05-17
Author: Sigmoid
Post Type: page
Summary: Category assortment optimization with planogram drives higher retail sales Recommended the best assortment mix and shelf positioning to improve category sales at...Read More...
Featured Image: https://www.sigmoid.com/wp-content/uploads/2024/05/Category-assortment-optimization-Thumbnail.jpg
---
# Category assortment optimization with planogram drives higher retail sales
Recommended the best assortment mix and shelf positioning to improve category sales at a large retailer.
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### Business Scenario
The client is an American consumer health company, operating 25+ leading proprietary brands globally across multiple categories such as self-care, essential health, skincare, and beauty. The brand being a leader across 5 product categories, was required to design a precise merchandising strategy to achieve the desired growth while dealing with multiple constraints like case pack adherence and DOS compliance. Each planogram reset involved 3-4 months of manual analysis of national-level sales and trying out multiple shelf arrangement scenarios which became time-intensive and rudimentary over time.
### Sigmoid Solution
We undertook a consulting exercise to deeply understand the value chain and identify growth avenues for the brand such as shelf optimization. We created an [ML-based assortment optimization](/case-studies/ml-based-assortment-lifecycle-cpg-industry/) solution to automate the creation of planograms for the retail stores. The solution analyzed the store and category-specific shopping behavior of the consumers and identified the placement areas for maximum sales. Multiple data sets were pre-processed together to form store clusters using unsupervised clustering methodology. For each of the 42 distribution centers (DC), store clusters were created to improve the assortments for maximum sales.
[Download case study](/wp-content/uploads/2024/05/Sigmoid_case-study_planogram-optimization_CPG-industry.pdf)
### Business Impact
Sigmoid optimized the shelf placement for the brand with space-aware and localized planograms ensuring maximum category sales. The solution identified opportunities to introduce new SKUs and increase visibility for the brand.
>2% points increase
in the brand's share of shelves
50% savings
for retailer labor hours
8% uplift
in sales projected in the market-leading category
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