Retailers' SKU Rationalization Explained

Dr. Mark Young, the Founder and CEO of Jekyll & Hyde Advertising, a powerhouse agency that’s been helping challenger consumer brands break through the noise and scale into household names with billions of revenue and exits for nearly three decades.

He’s also the host of the CPG insiders podcast, the number 2 podcast in all consumer packaged goods niche.

Mark is also the author of a new book 27 Unbreakable Rules of Retail, how to build a $100M+ brand in brick and mortar

Mark is not your average marketer — his background blends neuroscience, persuasion, and behavioral psychology with decades of hands-on experience in CPG and direct-response advertising. Through his agency, Jekyll & Hyde, he’s helped hundreds of emerging brands launch, grow, and dominate retail shelves and online marketplaces.

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> Here’s a glimpse of what you would learn…. 

• Importance of brick-and-mortar retail in the consumer products industry.
• Challenges faced by e-commerce brands in a competitive market.
• Strategies for successfully entering physical retail spaces.
• The significance of product differentiation and authenticity in retail.
• The impact of traditional media, especially television, on brand awareness and consumer demand.
• The concept of SKU rationalization and its role in retail product selection.
• The necessity of creating consumer demand before approaching retail buyers.
• Understanding the economics of media buying and the Media Efficiency Ratio (MER).
• The principle of "Who Not How" in building a successful business team.
• The role of AI as a collaborative tool in enhancing business strategies.

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews Dr. Mark Young, CEO of Jekyll and Hyde Advertising. Mark shares his expertise on building $100 million consumer brands in brick-and-mortar retail, emphasizing that 80% of product sales still occur offline. He discusses the challenges of retail entry, the importance of unique, premium products, and the power of TV advertising to drive demand. Mark also highlights the value of expert partnerships and leveraging both human intuition and AI, offering actionable advice for e-commerce brands aiming to succeed in physical retail.

Here are the 3 action items that Josh identified from this episode:

1. Prove Demand Before Approaching Retailers
   Build real consumer pull through DTC + paid media (TV, social, influencers). Retail buyers want evidence of demand, not Amazon screenshots. Come in with a buyer-ready pitch showing how you'll drive traffic to their stores.
2. Position Your Product as a Clear Upgrade or Category Expander
   Ensure your SKU hits at least one winning lever:
   • Premium trade-up (higher-margin, innovative)
   • Demographic expander (brings new shoppers)
   • Category expander (increases consumption)
     If your product is a “me-too” item, it won’t make it onto shelves.
3. Build a Retail-Ready P&L With Strong Margins & Media Plan
   You need minimum 5:1 markup and a funded media strategy (TV recommended) to support retail sell-through. Retailers expect marketing that drives velocity—without it, your product risks getting cut during SKU rationalization.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com
• Amazon
• ChatGPT
• Shopify
• Helium 10
• IRI (Information Resources, Inc.)
• Meta Ads
• WRTV
• Jekyll+Hyde Labs
• CPG Insiders
• Thinking, Fast and Slow
• "Who Not How" by Dan Sullivan and Ben Hardy
• "The Science of Scaling" by Dr. Ben Hardy
• Primal Intelligence
• Walmart
• Shark Tank
• The Home Depot
• Dan Sullivan

Special Mention(s):

• Adam “Heist” Runquist on LinkedIn
• Kevin King on LinkedIn
• Michael E. Gerber on LinkedIn

Related Episode(s):

• “Cracking the Amazon Code: Learn From Adam Heist’s Brand Scaling Secrets” on the eComm Breakthrough Podcast
• “Kevin King’s Wicked-Smart Tips for Building an Audience of Raving Fans” on the eComm Breakthrough Podcast