Presentation created for University of Pittsburg & Dick's Sporting Goods' Co-hosted Business Analytics Competition

1. Dick’s Slam Dunk
Alma Semock, Sravya Vemulapati, Jaffer Razvi, Chandrika Bodduru

2. Agenda
Current Situation
The Strategy
Wall: Our Approach
Marketing
Utilizing IoT
Vendor Analysis
Final Recommendations
Appendix

3. Current Situation
DSG has cut down the number of brands offered for basketballs for the 2018
holiday season due to customer complaints on the overwhelming number of
choices.
To satisfy customer needs, DSG must decide on:
● What basketballs should be offered
● How to attract and retain loyal customers
● Manage vendor relations

4. Strategy Overview

5. Proposed System - 5x6

6. Men & Replica
Women & Replica
Juniors & Mini
Our Approach Stretch Level
Above 6ft.
Eye Level 4-5ft.
Touch Level 3-
4ft.
Stoop Level
Below 3ft.

8. Driving Sales Physically
1. Hands on - Are YOU a Big Baller?
2. Sales can increase by 200% or more when an item is sampled
3. Train associates to promote the wall and the demo
4. Psychological Association - positive brand recollection
5. Run promotion campaigns that focus on the wall
6. Human Relationship!

9. Driving Sales Digitally
1. Use age, gender, and other information to tailor ads, emails, and other
content to prospective customers
2. Automated emails, push notifications to supplement remarketing
3. Tracking with conversion focused campaigns - where do disconnects
occur?
4. Take advantage of Team Sports HQ platform to promote wall & demo
5. Try it now!

10. Utilizing IOT

11. Refill System
Why: Bridge the gap between supply and demand
Current Approach:
● Lost sales and Unhappy customers
● Inconsistent Inventory Management
How
1. Sensor alerts to store management
2. Study the current trends in demands for the product
Benefits
● Improved Sales and Minimize Gap between Supply & Demand
● Eliminate Human Error

12. Business Processes Model

13. Internet Of Things
Customer reactions:
● 31% buy the product: Different
store or online
● 26% buy a cheaper alternative
● 19% buy the same brand but a
different variant/size
● 15% buy the product at a later date
● 9% buy nothing
4% loss in sales
Over $10million sales in basketball
$400,000 loss in sales
Cost to implement per store: $1000

14. Vendor Relationship Management
General pitfalls
1. Assumptions
2. Inconsistencies in the process
3. Misleading information

15. Vendor Relationship Management
Goal: Achieve long-term, sustainable supplier relationships that mitigate
risks and perform continuous improvements
1. Joint Planning
2. Data Sharing
42% 32%

16. Bottom line: Human Interaction

17. THANK YOU

18. Appendix

19. Assumptions
Customers aren’t knowledgeable - not professional basketball players.
Checkout% is the number of units sold for every 100 units.
There are many (2600+) negative values in the inventory data, we assumed that
this was miscalculated inventory and thus our IOT solution - to aid with that.

21. Basketball Models
Excel

22. Justification for # of Bballs displayed
Reason 1: “Crest lost market share... as soon as there were 50 Crest toothpastes, its market share dipped to 25 per
cent and fell behind Colgate.” When they had one product they captured above 50% of the market.”
(https://www.retaildoc.com/blog/retail-sales-training-too-much-choice)
Reason 2: Jam study
(https://faculty.washington.edu/jdb/345/345%20Articles/Iyengar%20%26%20Lepper%20(2000).pdf)
Reason 3: Too many choices leads to bad decisions, anxiety, stress, dissatisfaction, depression (lol). Each decision
comes with trade-offs, affecting our level of satisfaction. We are less satisfied with our decision because our
imagination makes us think the grass is always greener.
Too many options makes all options look unappealing, leading to people less likely to make a decision.
(http://www.businessinsider.com/how-too-many-choices-are-screwing-us-up-2016-11#too-many-options-can-lead-us-
to-make-bad-decisions-4)

23. Risk
In store demo: Basketballs could be stolen, needs to be supervised
Components of VRM (1.joint planning: possibility of unsuccessful meetings-
ensure specific topics are covered in each meeting to ensure success 2. Data
sharing software: careful w/ sharing sensitive data (could lead to pressure to
lower price), confidentiality(avoid data leaks), information sharing could lead
to violation of anti-trust laws, split cost of tech)

24. IoT Technical Architecture - Context Diagram

25. How can DSG partner with vendors to drive sales, purchase
large amounts of product, and ensure good customer
experience?
The best solution for data inaccuracy is continually ensuring that vendor and retailer records match.
Aligning data between the two partners has a proven impact on lowering OSS
(https://www.askuity.com/insights/7-root-causes-out-of-stock-retail-intelligence-addresses-industrys-
enduring-problem/)
Stores with accurate inventory records have an average OOS rate of 4.1%, cutting the usual rate by
half. Integrating data streams from various points on the supply chain can move companies toward
this goal.
In other words, comparing historical data to data visualized in real-time allows savvy vendors and
retailers to estimate the impact of lost sales from unobserved OOS and integrate those figures into
their demand forecasting.

26. Other factors for why DSG chose certain brands over others?
Better deals with certain brands.
Higher profit margin.
Some brands have better reputation/recognizability.
Communication- Vendors that communicate in a timely fashion are much
more desirable.
Priorities and Goals - What does DSG see as a priority or goal and do vendors
share the same view?
Respect - key to a long, mutually beneficial relationship

27. Critical Supplier Capabilities
1. Customer Insights Management
2. Merchandising Strategy
3. End-to-end Process Management
4. Nimble Supply Chain

28. Vendor Relation Management
Proof of 40%, 49%: http://www.mypurchasingcenter.com/purchasing/industry-articles/what-is-srm-and-why-does-it-
matter-to-the-retail-industry/
Joint Planning:
https://hbr.org/2017/07/stop-the-meeting-madness
Cloud-Based Savings: http://multichannelmerchant.com/blog/building-case-retailer-vendor-data-sharing/
https://www.sigmoid.com/retail-analytics/supplier-analytics/

29. VRM Success Factors
Balance of dependency; nobody is taking advantage of the other party
Align incentives of those who interact with suppliers so they are aligned with
goals and drivers of enhanced collaboration
Invest in development of soft and technical skills required for vendor collab
Implement long-term contracts w/ key suppliers that outline processes,
principles, and collaboration meetings
Clarify roles to increase coordination with respect to all parts of the
organization that deal with vendors

30. Citations
http://www.mypurchasingcenter.com/purchasing/industry-articles/what-is-srm-and-why-does-it-
matter-to-the-retail-industry/
https://hbr.org/2017/07/stop-the-meeting-madness
http://multichannelmerchant.com/blog/building-case-retailer-vendor-data-sharing/
https://medium.com/@giaphualihua/eye-level-is-buy-level-the-principles-of-visual-merchandising-
and-shelf-placement-5f2fd8f7f298
http://www.mypurchasingcenter.com/purchasing/industry-articles/what-is-srm-and-why-does-it-
matter-to-the-retail-industry/
https://www.pwc.nl/nl/assets/documents/pwc-supplier-relationship-management.pdf