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Despite a steady growth of large modern retailers, traditional trade still represents a
significant share of retail sales in emerging markets. The key to growth is to empower
the field force with intelligent market information. The challenge, however, is to do so
in the absence of point-of-sale (POS) data to help identify consumer -buying behaviours
and patterns. Additionally, generating specific information for each unique outlet
becomes important. This can be a herculean task, considering the magnanimity of the
data.
Cross-Sell Recommendations: Customized predictive models are built using outlet -level
historic transactional data. The outcome is a score indicating the selling propensity of
a product that is currently not selling. Decisions made on the field can result in
assortment and revenue increases.
Stock-Out Analysis: The prediction of stock -outs is done based on the estimation of key
parameters, like closing stock and selling rate, to predict the stock avail ability on a
given day. Done with reasonable accuracy and undertaking proactive replenishment can
lead to significant growth in on-shelf availability.
FAST FACTS
Words of Wisdom
“No human being can look at data from a million and a half outlets and come up with the
answers; the designed logic is to build an algorithm and come up with certain
recommendations of the system.” — Nitin Paranjpe, CEO and managing director, Hindustan
Unilever
Data Differences
Emerging markets are characterized by a dependence on traditional trade, which does not
capture tertiary or POS data. Instead, data sources include secondary sales data; the product,
distributor and store masters; and field audit data for stock-out analysis.