Retail Business challenge Cosmetics are an easy way to tap into the latest trends—but what if that new lipstick sells out before you can buy it? To keep its customers in style, Grupo Boticário must predict demand accurately. Transformation Grupo Boticário has grown into the world’s largest perfumery and cosmetics franchiser by helping its customers look good—which means it always needs to keep the hottest new products in stock. IBM Analytics helps the group understand what customers want, before they even know they want it—enabling smarter sales, marketing and production planning. . Donald Neumann Demand Manager, Groupo Boticario “IBM Analytics solutions are helping us understand the myriad factors that make consumers choose one product over another.” —Donald Neumann, Demand Manager, Groupo Boticario Business benefits: 20% Increase in accuracy of demand forecasts over traditional approaches Balances Stock and service levels of the most desirable products, boosting sales Enhances Corporate agility by enabling real-time insights into consumer demand Group O Boticario Predicting consumer demand for cosmetics with insight that is more than skin-deep Solution components IBM® Cognos® TM1® IBM DB2 ® IBM SPSS ® Collaboration and Deployment Services IBM SPSS Modeler IBM Business Partner: CTI Global Client Name Grupo Boticário Company Background Grupo Boticário can trace its roots back to a small pharmacy in Curitiba, Brazil, which opened in 1977. Since then, it has grown to become one of the largest beauty groups in Brazil, and the leading perfumery and cosmetics franchiser in the world. Through four business units, O Boticário, Eudora, quem disse, berenice? and The Beauty Box, Grupo Boticário employs over 7,000 people directly and 22,000 indirectly, with a presence in 1,750 cities across Brazil. Business challenge Cosmetics are an easy way to tap into the latest trends—but what if that new lipstick sells out before you can buy it? To keep its customers in style, Grupo Boticário must predict demand accurately. Transformation Grupo Boticário has grown into the world’s largest perfumery and cosmetics franchiser by helping its customers look good—which means it always needs to keep the hottest new products in stock. IBM Analytics helps the group understand what customers want, before they even know they want it—enabling smarter sales, marketing and production planning. Results Increasing forecast accuracy by 20 percent over traditional time-series approaches, the solution enables Grupo Boticário to better align supply with demand—reducing stock-outs and lifting sales. Pull Quote “IBM Analytics solutions are helping us understand the myriad factors that make consumers choose one product over another.” —Donald Neumann, Demand Manager, Grupo Boticário Solution components BM® Cognos® TM1® IBM DB2® IBM SPSS® Collaboration and Deployment Services IBM SPSS Modeler Case study Links Case study landing page: http://ibm.co/2ijuw5F Digital version: http://ibm.co/2ifFtoK Grupo Boticário can trace its roots back to a small pharmacy in Curitiba, Brazil, which opened in 1977. Since then, it has grown to become one of the largest beauty groups in Brazil, and the leading perfumery and cosmetics franchiser in the world. Through four business units, O Boticário, Eudora, quem disse, berenice? and The Beauty Box, Grupo Boticário employs over 7,000 people directly and 22,000 indirectly, with a presence in 1,750 cities across Brazil. Share this