A non-traditional approach to SKU rationalization was

undertaken. Rather than a Product-centric view and

seeing which SKUs were contributing marginally to
overall revenues and profits, a Customer-centric view
was implemented. This framework reduced business
complexity, while maintaining Customer Satisfaction.
Approximately 30% of SKUs were rationalized with
minimal impact to revenues, profitability & Customer
retention.
SKU Rationalization
Reduce business complexity with minimal impact to
Revenues, Profitability and Customer Satisfaction
Further, it was found that key style groups and colors remained consistent year-on-year
And that Customer repurchases on deleted style groups and colors were 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.
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%
2008-09 2009-10 2010-11 2011-12
13%
34%
64%
44%
15%
36%
57%
49%
0% 10% 20% 30% 40% 50% 60% 70%
Reactivation Continued SKUs Reactivation Discontinued SKUs
Customer
Segment1
Customer
Segment2
Customer
Segment3
Customer
Segment4
Business had over 5000 SKUs
across a few unique Product
Platforms. Each platform had
SKUs 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
Blue
Gunmetal
Red
Black
Burgundy
Green
Rest
YOUR PARTNER FOR
DATA ANALYTI CS SERVI CES
MANAGEMENT TEAM
GLOBAL EXPERIENCE.
PROVEN RESULTS.
Roy K. Cherian
CEO
Roy has over 20 years of rich experience in marketing, advertising and media
in organizations like Nestle India, United Breweries, FCB and Feedback
Ventures. He holds an MBA from IIM Ahmedabad.
Anunay Gupta, PhD
COO &Head of Analytics
Anunay has over 15 years of experience, with a significant portion focused
on Analytics in Consumer Finance. In his last assignment at Citigroup, he was
responsible for all Decision Management functions for the US Cards
portfolio of Citigroup, covering approx $150B in assets. Anunay holds an
MBA in Finance from NYU Stern School of Business.
Buck Chintamani
EVP, Strategic Initiatives &Business Development
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 RFID
sector startup - Reva. Most recently, he was the Vice-President for Service
Partner Strategy and Programs at product lifecycle management software
company, PTC. Buck has an MBA from IIM Ahmedabad.
Kakul Paul
Business Head, CPG
Kakul has over 6 years of experience within the CPG industry. She was
previously part of the Analytics practice as WNS, leading analytic initiatives
for top Fortune 50 clients globally. She has extensive experience in what
drives Consumer purchase behavior, market mix modeling, pricing &
promotion analytics, etc. Kakul has an MBA from IIM Ahmedabad.
ADVANCED ANALYTICAL SOLUTIONS
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80 Broad Street, 5th Floor, New York, NY 10004
1.212.837.7827 (o) 1.208.439.5551 (fax) info@marketelligent.com
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www.marketelligent.com
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