A non-traditional approach to SKU rationalization wasundertaken. Rather than a Product-centric view andseeing which
 were contributing marginally tooverall revenues and profits, a Customer-centric viewwas implemented. This framework reduced businesscomplexity, while maintaining Customer Satisfaction.Approximately 30% of SKUs were rationalized withminimal impact to revenues, profitability & Customerretention.
SKU Rationalization
Reduce business complexity with minimal impact to Revenues, Profitability and Customer Satisfaction
Further, it was found that key style groups and colorsremained consistent year-on-year
And that Customer repurchases on deleted style groups and colorswere not significantly impacted the following year
Recommendations made to rationalize marginal style groups and colors, leading to approximately 30% SKU reduction and significant cost savings in business complexity and working capital.
Reactivation Continued SKUsReactivation Discontinued SKUs
Customer Segment1Customer Segment2Customer Segment3Customer Segment4
Business had over 5000 SKU’s
across a few unique Product Platforms. Each platform had
SKU’s across many style groups
and colors.
Style groups and colors were investigated for marginal contributions to Revenues.
It was found that only a few key style groups and colors accounted for over 90% of revenues
Client : A leading B2B Retailer of Personalized Gift Products
Roy has over 20 years of rich experience in marketing, advertising and mediain organizations like Nestle India, United Breweries, FCB and FeedbackVentures. He holds an MBA from IIM Ahmedabad.
Anunay has over 15 years of experience, with a significant portion focusedon Analytics in Consumer Finance. In his last assignment at Citigroup, he wasresponsible for all Decision Management functions for the US Cardsportfolio of Citigroup, covering approx $150B in assets. Anunay holds anMBA in Finance from NYU Stern School of Business.
Buck has extensive experience working with global clients across sectors.He was an early employee at Infosys, a founding team member at supply-chain software startup - Yantra, and part of the management team at RFIDsector startup - Reva. Most recently, he was the Vice-President for ServicePartner Strategy and Programs at product lifecycle management softwarecompany, PTC. Buck has an MBA from IIM Ahmedabad.
Kakul has over 6 years of experience within the CPG industry. She waspreviously part of the Analytics practice as WNS, leading analytic initiativesfor top Fortune 50 clients globally. She has extensive experience in whatdrives Consumer purchase behavior, market mix modeling, pricing &promotion analytics, etc. Kakul has an MBA from IIM Ahmedabad.
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