Business Case Studies & Business Publications

Supreme Mart: Understanding Product Mix

Palomba, Anthony, ...

Case

Supreme Mart: Understanding Product Mix

Palomba, Anthony; Garcia-Rada, Mauricio

M-1051 | Published September 11, 2024 | 6 pages Case

Collection: Darden School of Business

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This case examines Supreme Mart, a leading specialized retailer in Peru. The company, which has shifted its target market from upper-class to lower-middle-class consumers, faces challenges in optimizing its product mix and store performance. Colosseum Consulting has been engaged to improve Supreme Mart's valuation through tactical actions, focusing on operational, commercial, and financial effectiveness. The case centers on the commercial effectiveness workstream led by Antonio Benavides, who is tasked with improving profitability at the store level. Benavides must develop metrics to control for store size, analyze the relationship between product mix and store performance, and evaluate the true profitability of the bike category. The case highlights the complexities of retail strategy, product mix optimization, and the interplay between retail and financial services in a specialized retail context. Moreover, this case is built to help students further hone their Tableau skillsets surrounding cluster analysis, scatter plots, and creating specialized tables for further data analyses. Two datasets accompany this case.