Product/Service Rationalization

We help review and evaluate a company’s portfolio of products or services to determine which ones should be promoted, enhanced, maintained, or discontinued. The aim is to optimize resources, improve profitability, and align offerings more closely with market demand and strategic business goals.

Key Client Challenges

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How can we identify and phase out underperforming products or services without alienating our existing customer base?
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What steps can we take to ensure our offerings are aligned with evolving market demands and customer preferences?
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Why are we struggling with operational inefficiencies tied to managing a complex range of products or services, and how can we simplify it?
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How can we prioritize resources toward higher-margin or higher-growth opportunities within our portfolio while mitigating risks?
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Should I keep or cut low-performing SKUs?

Our Process

Portfolio Performance Review

1

Portfolio Performance Review

Conduct a comprehensive assessment of the current product or service lineup, analyzing sales, margins, growth trends, and contribution to overall profitability.

Market & Competitive Analysis

2

Market & Competitive Analysis

Evaluate market demand, customer trends, and competitor offerings to determine relevance, positioning, and differentiation of each product or service.

Profitability & Contribution Analysis

3

Profitability & Contribution Analysis

Identify low-performing offerings that consume resources but deliver minimal financial return or strategic value.

Strategic Fit Assessment

4

Strategic Fit Assessment

Evaluate each offering’s alignment with the organization’s long-term goals, brand strategy, and core capabilities.

Resource Utilization Review

5

Resource Utilization Review

Analyze production, marketing, support, and operational resources tied to each offering to assess opportunity cost and return on investment.

Customer Value Assessment

6

Customer Value Assessment

Gauge customer reliance and satisfaction with each offering to avoid eliminating products/services that are strategically important to key segments.

Rationalization Decision Framework

7

Rationalization Decision Framework

Establish clear, data-driven criteria for retaining, enhancing, phasing out, or consolidating offerings—considering financial, strategic, and customer dimensions.

Investment Reallocation

8

Investment Reallocation

Redirect marketing, sales, and development resources to high-potential offerings with stronger market opportunities or margins.

Phasing Out & Transition Planning

9

Phasing Out & Transition Planning

Develop a controlled exit plan for retiring offerings, managing contract obligations, inventory, and customer transitions.

Communication Strategy

10

Communication Strategy

Proactively communicate portfolio changes to stakeholders—customers, employees, suppliers—with clarity on rationale, timing, and benefits.

Post-Rationalization Tracking

11

Post-Rationalization Tracking

Monitor key metrics (e.g., profitability, market share, customer retention) to assess the impact of changes and validate strategic assumptions.

Ongoing Portfolio Optimization

12

Ongoing Portfolio Optimization

Implement a recurring review cycle to ensure the offering portfolio evolves in line with market shifts, innovation opportunities, and business priorities.

Speak to one of our product or service rationalization experts today.

Contact Us

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