Project Details

Project information

  • Category: Retail Sales
  • Client: Campany
  • Project date: 19 January, 2025
  • Report: 6 Dashboard Pages
  • Creation Time: 15 Hours
  • Tools: Power Bi
  • Project URL: https://lnkd.in/dzsRRTNA

Recommendations:

1. Inventory Management:

Stock up on large quantities of products in late August and October to meet the high demand in September, November, and December.

2. Boost Sales During Slow Periods:

Increase advertising campaigns, promotions, and discounts at the end of January and throughout February to counteract the drop in sales.

3. Focus on High-Demand Products:

Maintain a robust inventory of office supplies, especially binders and paper, as they are the most in demand.

4. Enhance Technology Products:

Invest in the quality of technology products, focusing on copiers, which yield the highest profitability.

5. Revise Pricing for Underperforming Products:

Adjust prices for tables and certain office supplies to minimize losses.

6. Increase Sales in the Southern Region:

Launch targeted marketing campaigns and offer competitive pricing in the Southern region, considering the lower average income levels.

7. Address Losses in Philadelphia:

Reassess product pricing and improve sales strategies in Philadelphia to mitigate losses.

8. Expand in High-Growth Cities:

Open new branches in cities like New York, Los Angeles, and San Francisco, which consistently generate the highest sales and profits.

9. Reducing Returns:

Investigate the causes behind the increase in returns in 2017 and address them to prevent future occurrences.

10. Category-Specific Strategies:

Focus on improving product quality and customer service in categories with higher return rates to reduce returns.

11. Improving Shipping Classes:

Enhance the customer experience for Standard Class shipping to reduce returns, particularly by focusing on packaging and delivery quality.

12. Product Monitoring:

Regularly monitor the most frequently returned products to identify the causes and make necessary adjustments to design, pricing, or quality.

13. Seasonal Management:

Reduce returns during February by improving service quality during this period and offering clear and flexible return policies.

14. Regional Focus:

Implement targeted strategies to reduce return costs in the Western region and Brentwood, such as improving pre-shipping inspection processes and refining return policies.

15. Impact of Discounts:

Moderate discounts enhance financial performance by increasing sales, whereas high discounts lead to reduced profits and rising losses. It is recommended to avoid offering discounts above 27% to

16. Categories and Discounts:

Technology products receive the lowest discounts but achieve the highest profitability, highlighting the importance of minimizing discounts on high-demand or highly profitable items.

17. Shipping Preferences:

Standard Class shipping is the most preferred option among customers, significantly contributing to increased sales and profits. To maintain this success, it is recommended to ensure timely deliveries and improve service quality for this shipping category

Objectives

1. Comprehensive Analysis for 2014-2017:

Determine total sales, profits, quantities sold, and profit margins during the period.

2. Category-Specific Analysis:

Evaluate total sales, profits, and quantities sold for each product category individually

3. Daily and Monthly Insights:

Ensure easy access to sales data for any specific day, month, or year.

4. Peak Sales Seasons:

Identify high-demand sales periods and peak times, with actionable recommendations for maximizing benefits.

5. Low Sales Seasons:

Recognize periods of low sales and devise strategies to bridge these gaps.

6. Regional Performance:

Determine the best and worst-performing regions in terms of sales and profitability.

7. Expansion Strategy:

Identify the best geographical locations for opening new branches.

8. Total Returns:

Identify the total number of returned orders.

9. Return Costs:

Calculate the total cost of returned products.

10. Category Analysis:

Identify the category with the highest return rate.

11. Shipping Class Analysis:

Determine the shipping class with the highest return rate.

12. Product Returns:

Identify the most frequently returned products.

13. Timing of Returns:

Determine the peak times for returns throughout the year.

14. Regional Analysis:

Analyze the cities and regions with the highest return rates and associated costs.

15. Evaluate the impact of discounts on sales and profits and compare the effects of varying discount rates.

16. Determine whether high discounts positively or negatively affect profitability.

17. Identify the category receiving the largest discounts.

18. Analyze the preferred shipping method among customers and its effect on sales and profitability.

Key Observations:

• Profitability:

Profit margins exceed 12%, surpassing the company’s target of 10%.

Year-over-year growth in profit margins highlights management efficiency.

• Product Categories:

The Technology category leads in both sales and profitability.

Office Supplies are the most preferred by customers, with the highest quantities sold.

• Sales Seasons:

Sales peak in September, November, and December.

February records the lowest sales.

• Top and Low-Performing Products:

Binders and Paper lead in quantity sold.

Copiers generate the highest profits.

Phones and Chairs drive the highest sales.

Tables and certain office supplies incur significant losses.

• Regional Insights:

The Western region achieves the highest sales.

The Southern region has the lowest sales, despite its high population density.

New York City ranks as the top-performing city in sales and profitability.

Philadelphia incurs substantial losses despite a high sales volume.

• Return Number and Costs:

A total of 800 orders were returned, with a total cost of 23,230.

• Increase in Returns:

There was a significant rise in returns in 2017, with the number of returned orders doubling from 197 in 2016 to 289 in 2017. The associated costs increased more than sixfold from 2,610 to 15,730.

• Return Rate Distribution:

Return rates across categories were relatively similar, ranging between 32%, 33%, and 34%.

• Shipping Classes:

The Standard Class shipping option had the highest return rate, which is expected due to its higher sales volume.

• Frequent Returns by Products:

The most frequently returned products had only four returns each, a pattern observed in two different products.

• Seasonal Timing:

February had the highest number of returns, which corresponds with its status as the month with the lowest sales.

• Regional and City Analysis:

More than half of the returns occurred in the Western region, making it the highest in return rates. The city of Brentwood had significantly higher return costs compared to other cities.

• High discounts negatively impact profits, with sales declining and losses increasing when discounts exceed 30%.

• Moderate discounts boost sales and improve profitability.

• Technology products receive the lowest discounts compared to other categories.

• Approximately 60% of sales are made using the Standard Class shipping option, making it the most popular among customers.

• Standard Class shipping generates the highest sales and profits, with profit margins exceeding 50%.

Working time .. The project was completed in about 15 hours over 3 days.