Product Life-Cycle & Portfolio

Sunset Planning: When to Retire a Legacy SKU

Use evidence to retire SKUs that drain profit and focus the line on what shoppers value. This quiz tests triggers, cross‑functional steps and proofs that make rationalization accretive.

Which signal most consistently triggers sunset consideration for a legacy SKU?

One retailer requesting extra facings

Recent packaging update

High social media mentions regardless of sales

Negative contribution after complexity costs or persistently low velocity vs. portfolio thresholds

Sunset candidates typically destroy value once true economics include complexity and service costs, or they underperform persistently on demand and velocity.

What is the first step in a structured SKU sunset plan?

Announce the end of life on social media

Discount all inventory immediately

Switch factories without a plan

Decide the retirement case with SKU‑level economics and a consumer‑centric rationale

Start with facts and a customer‑oriented story so partners understand why the change benefits the portfolio and shoppers.

Which cross‑functional alignment avoids channel conflict during a sunset?

Coordinating last‑order dates, sell‑through incentives, and replacement assortment with key accounts

Only notifying PR teams

Cutting production without informing supply chain

Letting each market pick its own dates independently

Retailers and supply must agree on dates and backfill assortment to minimize gaps and write‑offs.

Which evidence convinces stakeholders that a sunset is value‑accretive?

Internal votes about brand heritage

Forecasts showing higher portfolio margin and simplified operations post‑retirement

Anecdotes from one store

Design awards for the packaging

Rationalization should lift portfolio economics and reduce complexity; quantify these effects in the business case.

A best practice for migrating loyal buyers off a retiring SKU is to ______.

hide the change to avoid attention

map attribute equivalence and signpost a replacement with offers or bundles

drop the price permanently on all other SKUs

leave shelves empty to force trading up

Clear migration paths retain customers and protect retailer performance during changeover.

What inventory tactic reduces write‑offs near end‑of‑life?

Raising price sharply to deter purchases

Bulk returns of unsold stock without a plan

Halting all shipments immediately

Phased production ramp‑down with targeted markdowns tied to store‑level velocity

Aligning run‑out with localized demand cleans inventory while protecting margins.

Which metric pair strengthens a sunset decision?

Gross revenue only and total followers

True contribution margin by SKU and measured cost‑to‑serve/complexity

Impressions and coupon downloads

Headcount and number of SKUs

Portfolio simplification depends on unit economics after service and complexity costs, not top‑line alone.

When should a sunset be delayed?

When packaging film stock is low

When brand mentions dip for a week

When the SKU anchors a key account’s set and removal risks losing shelf space

When one region has a surplus of shelf tags

Space and retailer relationships can outweigh near‑term economics; adjust sequence to protect distribution.

Which communication reduces consumer confusion during a sunset?

No in‑store messaging at all

Technical spec sheets posted online only

Only a corporate press release

Side‑by‑side shelf cards that point to the successor SKU and explain changes briefly

On‑shelf guidance catches shoppers at the decision point and preserves loyalty.

What post‑sunset check confirms the decision created value?

Ad recall scores rose temporarily

Awards for sustainability messaging

One store’s traffic increased

Net portfolio sales/margin improved controlling for seasonality and distribution

The test of success is portfolio lift and simpler operations, not isolated brand metrics.

Starter

You see when to prune; sharpen SKU‑level economics and migration playbooks.

Solid

Good on triggers and run‑out; strengthen retailer alignment and portfolio proofs.

Expert!

You design consumer‑centric sunsets that lift margin and simplify operations.

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