Problem Statement:
Analyse Promotions and Provide Tangible Insights to Sales Director
Domain: FMCG
Function: Sales / Promotions
AtliQ Mart is a retail giant with over 50 supermarkets in the southern region of India. All their 50 stores ran a massive promotion during the Diwali 2023 and Sankranti 2024 (festive time in India) on their AtliQ branded products. Now the sales director wants to understand which promotions did well and which did not so that they can make informed decisions for their next promotional period.
Sales director Bruce Haryali wanted this immediately but the analytics manager Tony is engaged on another critical project. Tony decided to give this work to Peter Pandey who is the curious data analyst of AtliQ Mart. Since these insights will be directly reported to the sales director, Tony also provided some notes to Peter to support his work.
Recommended Insights:
Store Performance Analysis:
- Which are the top 10 stores in terms of Incremental Revenue (IR) generated from the promotions?
- Which are the bottom 10 stores when it comes to Incremental Sold Units (ISU) during the promotional period?
- How does the performance of stores vary by city? Are there any common characteristics among the top-performing stores that could be leveraged across other stores?
Promotion Type Analysis:
- What are the top 2 promotion types that resulted in the highest Incremental Revenue?
- What are the bottom 2 promotion types in terms of their impact on Incremental Sold Units?
- Is there a significant difference in the performance of discount-based promotions versus BOGOF (Buy One Get One Free) or cashback promotions?
- Which promotions strike the best balance between Incremental Sold Units and maintaining healthy margins?
Product and Category Analysis:
- Which product categories saw the most significant lift in sales from the promotions?
- Are there specific products that respond exceptionally well or poorly to promotions?
- What is the correlation between product category and promotion type effectiveness?