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Product Analysis

Cost Analysis & Optimization:

Profit margin is an important attribute to product success. Potential activities for improving profit margins include:

  • Establishing and meeting initial product cost targets
  • Product cost reduction opportunities for existing products

    o reformulation
    o ingredient modifications
    o production efficiencies

  • Product line consolidations

AA&T evaluates product ingredients and manufacturing efficiencies to determine where high costs are concentrated.

AA&T then determines the most beneficial way to develop cost effective new products or reduce existing product costs, without compromising product integrity or customer satisfaction.

AA&T utilizes sensory testing to support consumer acceptance of product changes.

AA&T also conducts product line consolidations, as required, due to product line similarities and over-extended product lines.


Key Benefits:

  • Anticipated profit margins are met for new products—appropriate product costs and manufacturing efficiencies are delivered

  • Improves profit margins realized through reformulation of existing products and implementation of manufacturing cost efficiencies

  • Increases revenue with improved customer satisfaction

  • Maximizes efficiencies and minimized inventories i.e. ingredients, SKU’s, packaging materials, after consolidations

  • Lowers manufacturing costs from decreased change-over times and consolidated processes