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The Planet Sports Case

How we build a global digital marketing infrastructure

PLANET SPORTS - OMNICHANNEL RETAILER OF SPORTS AND STREETWEAR

Planet Sports is a leading provider of action sports and streetwear products. Based in Munich and with 20 years of company history, the company has 12 retail stores and operates an international online shop (omnichannel approach). 

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A global company with limited decision transparency

When OMMAX began working with Planet Sports, transparency about dependencies between decisions in procurement, logistics, or marketing created limited visibility of potentially “toxic” customers and transactions.

Collaborating with Planet Sports, OMMAX’s objective was to set-up a holistic decision-making tool that would increase company profitability and improve data analyzation. Furthermore, the tool would allow detailed scenario-based financial models to analyze the impact of product assortment optimization and digital distribution channels.

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The creation of a holistic decision-making tool

OMMAX worked together with Planet Sports in making their future procurement, logistics, and marketing decisions more data driven.

Constricted transparency surrounding decision dependency served as the major challenge for Planet Sports. Data remained isolated in silos, restricting the knowledge about actual profitability of products, customers, and marketing channels. As a result, Planet Sports obtained limited visibility on potentially “toxic” customers and transactions, i.e., customers that have never been profitable in their customer lifetime at Planet Sports and should have never been acquired in the first place.

To achieve a holistic picture of the Planet Sports shop, OMMAX experts developed an integrated data model and based on this, an interactive tool in Tableau. The comprehensive tool was built on the consolidation of all relevant data buckets (transactions, customers, marketing, logistics) and allowed for the determination of holistic analyses concerning the profitability of the product range, inventory turnover/days inventory out (DIO), customer groups with high return rates, customer profitability, marketing channels, and overall efficiency of marketing spending. To consolidate all data and determine well-rounded solutions, OMMAX’s Tableau design focused on 5 key decision-making areas: product assortment, returns, customer profitability, and marketing channel efficiency.

Planet Sports’ business profitability drivers, across all product groups, received an attractiveness ranking. Similarly, the profitability drivers for brands in the main product groups were reviewed. Customer profitability and marketing channel efficiency included a cohort analysis of period and product basis, including customer acquisition costs and profitability. Equally, the model considered customer cluster and segmentation. 

The discovered results were discussed, and the creation of operational recommendations was considered with all involved Planet Sports employees, to include focus sessions on procurement and marketing.* Additionally, further financial models were created based on toxic revenue analyses, which resulted in a significant profitability increase. 

*All overlaps between the analyses were considered in the development of recommended action. 
 

planet sports case study

Make strategic and operational decisions on an overall data basis...

The model developed by OMMAX and the reporting suite based on it enable us to make strategic and operational decisions on an overall data basis and no longer optimize individual silos without keeping an eye on the overall result. The model is now being used by several departments on a daily basis.

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Holger Hansen Founder & CEO Planet Sports

What We Have Achieved

 

  • OMMAX supported Planet Sports’ international digital transformation and the successful analyzation of 10 data silos

  • The set-up of the analytics tool and execution of the digital strategy involved 8 departments and resulted in +16.9 pp EBIDTDA margin uplift

  • Digital initiatives resulted in -16 % toxic revenue cut for Planet Sports 

“As with most E-Commerce companies, the data quality at Planet Sports was solid. The big value-add was therefore to link the various data sources and set up a dynamic reporting suite in Tableau based on this consolidated database. The model enables the various functional teams at Planet Sports, such as performance marketing, onsite, existing customer marketing, logistics and procurement, to make data-driven decisions in their daily operations in the individual areas but also across departments.”