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Analytics Services
Product Network Analysis -Amazon.com Case Study
Introduction Document
March, 2013
Disclaimer: Public Amazon.com data is used for illustration and results can not be used for commercial purposes.
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What is PNA? Product Network Analysis (PNA) is the automated discovery of relations as well as key products and their roles within a product portfolio
Most commonly purchased item within “Parenting Books”.
Must have / loyalty builder for “Parenting Books”.
An item of interest for purchasers of both “Healthy Baby Products” and “Parenting Books”.
Effective in cross-category sales triggering.
An isolated item, creating limited synergy with portfolio. Evaluated in rationalization and new category build-up.
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Targeted Promotions Sourcing & Assortment
Layout & Shelf Management Product Pricing
Increased cross-sales opportunities and micro-category loyalty management
Optimized product line-up, maximizing relevance and increasing impulse purchase
Optimized prices, incorporating cross-sales and loyalty impact of products
Increased efficiency in product portfolio and new category development opportunities.
PNA
Why use PNA? PNA provides ability to identify hidden, untapped opportunities across merchandising and marketing activities, increasing customer loyalty and sales as the ultimate impact
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PNA Case Study – Amazon.com As a showcase, our PNA model discovered 6,370 product clusters from Amazon.com product data from 2006, including over 350K books, video and music items
2418
989
582
418 310
249 204 127 100 92 78 67 40 36 24 38 24 18 33
523
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 +
Size of Product Clusters vs. Number of Items
Portfolio Rationalization Opportunities
Cross-sales & Bundling Opportunities
Micro-Category Development Opportunities
Source: Forte Consultancy Analysis on product recommendation data of Amazon.com.
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Sample Product Clusters Discovered (1 of 3) PNA provides ability to fine-tune and sub-categorize product categories managed by retailers…
Cluster # 57 (Art of Music)
Products in Cluster 1659
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Sample Product Clusters Discovered (2 of 3) …and provide opportunity to discover less traditional and overlooked micro-categories…
Cluster # 65 (Witchcraft)
Products in Cluster 2215
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Sample Product Clusters Discovered (3 of 3) …which can be quite sizeable in some cases
Cluster # 62 (Troubled Family)
Products in Cluster 4092
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Sample Isolated Products Discovered In addition, PNA facilitates identification of isolated products, which point out to merchandising rationalization and enrichment opportunities
Isolated Cluster (# 1)
Boston University Hockey
Isolated Cluster (# 2)
Everything about Zippo
Isolated Cluster (# 3)
Discovering Houston
Isolated Cluster (# 4)
Gender Specific Mentoring
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