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Analytics in Action - How Marketelligent Helped a Retailer Rationalize SKU's

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Improve Demand Forecasts. Sales up by $ 3MM, stock-outs down
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  A non-traditional approach to SKU rationalization wasundertaken. Rather than a Product-centric view andseeing which  SKU’s  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 ã Further, it was found that key style groups and colorsremained consistent year-on-year ã And that Customer repurchases on deleted style groups and colorswere not significantly impacted the following year ã 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. 5%5%5%5%11%10%8%6%11%11%11%10%10%11%11%12%26%25%26%28%30%30%31%30%0%20%40%60%80%100%2008-092009-102010-112011-1213%34%64%44%15%36%57%49%0%10%20%30%40%50%60%70% Reactivation Continued SKUsReactivation Discontinued SKUs   Customer Segment1Customer Segment2Customer Segment3Customer Segment4 ã Business had over 5000 SKU’s across a few unique Product Platforms. Each platform had SKU’s across many style groups and colors. ã Style groups and colors were investigated for marginal contributions to Revenues. ã 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 BlueGunmetalRedBlackBurgundyGreenRest   YOUR PARTNER FORDATA ANALYTICS SERVICES MANAGEMENT TEAMGLOBAL EXPERIENCE. PROVEN RESULTS. RoyK.CherianCEO 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. AnunayGupta,PhDCOO&HeadofAnalytics 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. BuckChintamaniEVP,StrategicInitiatives&BusinessDevelopment 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. KakulPaulBusinessHead,CPG 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. ADVANCED ANALYTICAL SOLUTIONS   MARKETELLIGENT, INC. 80 Broad Street, 5th Floor, New York, NY 100041.212.837.7827 (o) 1.208.439.5551 (fax) info@marketelligent.com CONTACT www.marketelligent.com IndustryBusiness FocusTools and Techniques Consumer Finance Investment OptimizationSAS, SPSS, R, VBACredit CardsRevenue MaximizationCluster analysisLoans and MortgagesCost and Process EfficienciesFactor analysisRetail Banking & InsuranceForecastingConjoint analysisWealth ManagementPredictive ModelingPerceptual maps Consumer Goods and Retail Risk ManagementNeuralNetworksCPG & RetailPricing OptimizationChaid/ CARTConsumer DurablesCustomerSegmentationGenetic Algorithms Manufacturing andSupply Chain Supply Chain ManagementSupport Vector Machines High Tech OEM’s SentimentAnalysis AutomotiveLogistics & Distribution
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