Tell me about a time when you had to decide to discontinue or significantly reduce investment in a brand or SKU because the data showed it was underperforming. What data did you use, and how did you make the case?

Situation

In my role as brand manager for a personal care line, one of our mid-tier shampoo SKUs had been declining in sales volume for three consecutive quarters despite promotional support. Our P&L showed its contribution margin was negative after accounting for trade spend.

Task

I had to make a recommendation to either revamp the SKU or discontinue it, and if discontinuation was the right call, manage the exit without alienating our retail partners or leaving loyal consumers stranded.

Action

I gathered data: sell-out data from retail audits, consumer panel data showing a permanent shift to another brand, and a brand health tracker indicating declining brand relevance for that variant. I built a P&L scenario comparing the cost of keeping it (with necessary reformulation) versus discontinuing and reallocating resources to our faster-growing premium range. I presented the case to the marketing director with clear numbers: discontinuation would free up 15% of our trade marketing budget and improve category profitability by 5% overall. I then worked with sales to develop a phase-out plan, offering a limited-time transition pack, and communicating with top retailers to replace the shelf space with our new line.

Result

The SKU was phased out within two quarters. The freed-up budget helped accelerate the premium line, which grew by 20% in the following year. We retained all key retailer relationships and experienced no negative PR.