Case Study

Tuning the Ecommerce Growth Engine
for a Global CPG company by
leveraging Data & science

Business Objective

Sales through physical stores is worth USD 10B+ of business for our client. On the other and, ecommerce, currently a small percentage of revenues is expected to contribute almost all of the company’s growth in the near future (this is the mostly the case for the CPG industry as a whole as well). While availability of all relevant data for ecommerce posed a constraint, the client imperative was: “How can we accelerate our ecommerce growth further through data & insights driven decisions?”

Challenges

  • Multiple ecommerce platforms with different granularity
  • Lack of robust industry level view from traditional data providers

Solution Methodology

We enabled our client to work around data constraints and gain competitive advantage by leveraging advanced analytics.
Ecommerce Data Management at Scale

  • Operated as part of a multi-disciplinary team including the client, data partners and ecommerce retailers in the design and build of a data platform that brought together ecommerce sell- through data (from 12+ retailers/etailers), search rankings and content effectiveness.
  • Helped address data challenges by:
    • — Rolling up different hierarchies to a common level at which total market/category picture could be effectively analyzed without losing granularity.
    • — Applying machine learning techniques to derive product attributes from product descriptions where master data coverage/data quality was low, and incorporating seasonality adjustments for products with limited historical data.

Advanced Analytics for Ecommerce effectiveness

  • Developed category P&Ls for the ecommerce channel, as well as analysis around brand/category level share of sales (volume & value).
  • Developed insights to understand opportunity loss due to out of stock/unavailability in online stores across retailers.
  • An ecommerce promotion spend optimization engine was built for use by account teams collaborating with ecommerce partners to decide on optimal allocation of spend dollars across multiple promoted product groups.

Business Impact

  • Built category P&L for ecommerce sales worth USD 500MM, covering for 200+ categoryx ecommerce partner combinations
  • Identified optimization opportunities to improve return on spend by 30% on ecommerce promotions in key categories.
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