Analytics in Retail Sector

Research Methodology Project Report

Challenges, Opportunities and Outlook of Analytics in Retail Industry

Submitted By: Group 7 ROLL NUMBER | NAME | 65 | Vishal Nigam | 57 | Shveta Dang | 48 | Riju Mathew | 38 | Padmanava Gupta | 36 | Nidhi Babbar | 27 | Kavita Chatterjee |

Date: 23rd April, 2013

Contents 1. Executive Summary 2. Introduction 3.1. Analytics and Retail Industry 3.2. Indian Retail Industry – An overview 3. Prerequisites of Analytical Retail 4. Current Status of Implementation of Analytics in the Retail Industry 5. Hypothesis 6. Methodology 7.3. Sample Questionnaire 7. Future Prospects 8. Conclusions
References and Acknowledgements

1.
EXECUTIVE SUMMARY
Analytics have become one of the most powerful tools available to retailers, and are being used for a broad variety of purposes. Organized retail has typically used analytics to optimise various aspects of their business, including Customer Experience Management, Product Assortment, Pricing Optimization, Loyalty program management etc. There are a variety of business questions, where analytics can be used to provide quick and accurate solutions.
Analytics have become one of the most powerful tools available to retailers, and are being used for a broad variety of purposes. This report summarizes trends in the use of analytics in retail across eighteen different categories, as well as several more emerging analytical activities. It is based on interviews with major retailers, retail analytics experts, and the published literature.

At every stage, analytics can be used as an aid to take key decisions for
1. Right Prospect / Customer – based on estimates of Lifetime Profitability
2. Right Channel – based on estimates of response rates & ROI
3. Right Message – based on resonance with target customer group
4. Right Offer /Promo – based on estimated response rates & ROI

This whole process is

References: and Acknowledgements To analyse major analytical trends facing retailers, the trade press and academic literature on retail analytics were reviewed. In which a research team had contacted major retailers and telephone interviews with a wide variety of retail firms and executives, including grocery, apparel, outdoor, fast food, and home improvement firms were conducted. Interviews with supply chain, marketing, and IT executives, online catalogue, and “bricks and mortar” retailers were also conducted. In each interview, executives were asked to describe the trends in analytics and data that most affected their businesses. Interviews conducted for experts in retail technology and analytics, including consultants, vendors, and academics. For each major trend area, a section describing the trend, its underlying rationale, the management issues involved in taking advantage of the trend, and the key exemplars of the trend among major retailers and their partners are described.