How to shorten the lifespan of a product – Cerami Tiles case study

Description
In the Excel file you will find a model comparing different methods of shortening the lifespan of the product that is a Slow Moving Consumer Good (SMCG). By SMCG firm we mean firms like: smartphone producers, domestic appliance producer, fashion players (to some extent), car manufacturers, furniture producers etc. In this Excel file as an example we use ceramic tiles. The firm is considering 3 different methods to shorten the lifespan of their product: creating fad / fashion for more frequent change of ceramic tiles, lowering the costs of installing the ceramic tiles, simplifying the installing process. In the Excel file we compare the 3 options and we try to see which is better.

This Excel file will show you how to approach similar problems in other SMCG businesses where by shortening the lifespan of the product you can significantly increase your revenues.

This analysis is an example of analysis done during consulting projects for SMCG companies. You can adjust the model by changing the parameters that are in blue. SMCG business models as all consumer goods related businesses are very demanding in terms of sales and marketing. Consulting projects especially when it comes to Slow Moving Consumer Goods (SMCG) are pretty difficult in terms of analyses. This sort of model will help you make more rational decisions.