Creating an assortment that works: How Unilin uses advanced predictive analytics to transform its assortment strategy
How do you make changes to a successful product portfolio to stay in touch with market trends, yet without hampering current sales? Learn how we helped the team at Unilin manage their bi-annual update of a product line with data-driven insights and confidence.
Client Introduction
Product Manager, Unilin
- Industry: (B2B) Retail
- Role: Product Manager
- Company Size: 2.7 Billion in Revenue, 8200 people strong
Unilin stands out in the global manufacturing sector with its diversified portfolio that includes laminate flooring, engineered-wood flooring, and melamine panels. The company harnesses the strength of over 8,200 employees across more than 105 locations, achieving a robust annual turnover of €2.7 billion in 2021.
The Challenge of Evaluating & Updating a Successful Product Line
Tasked with the critical role of managing product lines and innovations, the Product Manager's duties are pivotal in aligning strategic goals with market demands. The bi-annual update of the successful Unilin Evola collection is a complex, high-stakes task that involves balancing a vast array of products to meet diverse consumer preferences without overwhelming them.
If the available products in the assortment are placed incorrectly, the demand for these products may vary drastically. If less-popular items are mixed in with popular items, for example, they could detract from the more popular items' appeal. Or, if the assortment is too vast, customers may have difficulty finding the item they are seeking. Overwhelming clients with too many buying options can also be counterproductive and discourage customer engagement.
Given the above, the Product Manager must have the right insights to decide which items to retain, discontinue, or introduce—each choice potentially impacting sales and customer satisfaction of the successful product line significantly.
Solution Outline
Crunch Analytics developed a comprehensive analytics solution to provide the proper insights and streamline the process. This multi-faceted approach included:
Data Collection and Integration:
- Automated Web Scraping: Developed to collect images for design feature analysis from the Unilin Evola website.
- Data Integration: Utilizing advanced tools to merge data from various sources (ERP system, product master data, customer data) for a unified analysis platform.
Advanced Data Analytics:
- Key Metric Development: Creating and calculating metrics to evaluate sales volume, profitability, and product uniqueness among other factors.
- Color Analysis for Uniqueness: Employing color histograms and dominant color comparisons within decor categories to assess design uniqueness.
Predictive Modeling and Optimization:
- Pareto Frontiers Algorithm: Used to identify underperforming products by assessing multi-dimensional performance metrics.
- Predictive Machine Learning Model: A tree-based model to forecast new design performance and support data-driven design decisions.
Decision Support System:
- Power BI Tool: A custom-built dashboard to visually summarize data insights, trends, and model predictions for easy interpretation and decision-making by Unilin's team.
Results
The adoption of Crunch Analytics' solutions led to vast improvements:
- Efficiency: Reduced the time needed for data analysis from weeks to mere days, enabling quicker market responsiveness.
- Confidence in Decision-Making: Enhanced the accuracy of assortment decisions, boosting confidence among product managers and designers.
- Market Innovation: Supported the introduction of products that were better aligned with current trends and customer expectations, thereby improving market presence and competitive standing.
Conclusion
Crunch Analytics streamlined Unilin’s assortment planning process, providing the team with better insights to make the right decisions with regard to an already successful product. This case study exemplifies how leveraging advanced analytics and machine learning can profoundly impact business strategy and outcomes, providing guidance and instilling confidence.
Interested in learning more about how data-driven solutions can transform your business? Visit Crunch Analytics’ Case Studies for more inspiring examples, or follow us on LinkedIn for the latest updates and insights. For a personalized consultation or to discuss how we can assist your company, please contact us.
