Using AI to Deliver Strategic and Actionable insights for the Category Management Team

Business Objective

Our client is a leading American multinational manufacturer and marketer of home appliances. The Category Management team is responsible for generating growth for new and established product portfolios/brands, maintain good relationships with the retail channel partners to get better quality products and price, develop exit plans for products with uncertain future.

The following high-priority analytic solutions were identified

• Market Cluster Analysis to identify similar markets as most of the portfolio/spend decisions are taken at the market level

• Assortment planning to recommend SKUs to be assorted on the floor of retail stores along with planogram-level insights for selected retailers

• SKU rationalization recommendations to discontinue the appropriate SKUs and reduce inventory and manufacturing costs, after factoring in lost sales versus recovery through “good cannibalization”

  • Lack of access to competitor POS data
  • Lack of visibility of floor capacity for some retailers
  • Convincing the retailers on the recommended assortments
  • Friction from brand/product managers on SKUs recommended for elimination

Solution Methodology
  • Identified key Market Differentiators from available Market Attributes (Census, Store & weather attributes)
  • Developed clusters based on identified Key Market Differentiators
  • Automated the process of extracting Planogram data from the website of specific retailers
  • Built an Assortment Planning Engine to maximize Revenue/Margin for user-selected/recommended assortment profiles, controlling for Floor Spots & Price
  • Recommendations for SKU(s) to be discontinued were generated by learning from patterns of historical SKU removals and the corresponding demand redistribution behavior
Business Impact
  • ~8-10% increment in sales due to assortment optimization

  • SKU rationalization has helped in reducing manufacturing and product management cost

Copyright © 2023 Tiger Analytics | All Rights Reserved