What are some typical customer CTM responses?

Now let’s imagine we are a customer in charge of the category and the contribution to margin (CTM) calculations for the brands in our category are as follows. Brand A is a well known and clear category leading brand however although Brand A contributes two thirds of the category sales revenue it only contributes a third of my overall category margin. As a customer I am looking for any increases in either sales or margin % to grow my total category margin.

Brand

% Sales

% GM

CTM

CTM %

Brand A
60
5
3.0
35.7
Brand B
20
7
1.4
16.7
Brand C
10
10
1.0
11.9
Brand D
4
15
0.6
7.1
Private Label
6
40
2.4
28.6
TOTAL
100%
8.4
100%


We are going to think about some likely customer responses!

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