Product proliferation is bad for household goods companies
Whale Curve: 20%–30% of products typically generate 300% of profits.
After years of line extensions, unfocused product and service expansion, and poor product lifecycle management practices, food and beverage businesses are drowning in too many products and services. The result: inflated costs, high levels of working capital, poor execution, and lack of focus. Customers suffer too—they’re on the receiving end of poor service levels and left to navigate an overwhelming portfolio. Getting your portfolio right is as much about keeping and growing your customers as it is about becoming a more profitable business.