[Date] Business Report
STUDENT NAME
UNIVERSITY NAME
TABLE OF CONTENTS
INTRODUCTION............................................................................................................................................. 2
DATASET OVERVIEW..................................................................................................................................................2
COMPANY STORY.....................................................................................................................................................2
DATA MODELING.....................................................................................................................................................3
DATA STRATEGY..................................................................................................................................................... 3
PROFIT OVERVIEW....................................................................................................................................... 4
CUSTOMER OVERVIEW............................................................................................................................... 9
THE PROBLEM............................................................................................................................................. 11
LOW PROFIT MARGINS...........................................................................................................................................12
DISCOUNTS CAN AFFECT PROFIT AND LOSS............................................................................................................13
CONCLUSION AND RECOMMENDATIONS.............................................................................................. 14
REFERENCES...................................................................................................................................................... 15
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TABLE OF FIGURES
FIGURE 1 THE TREND OF SUM OF PROFIT FOR ORDER DATE WEEK ...............................................................................4
FIGURE 2 THE TREND OF SUM OF PROFIT FOR ORDER DATE MONTH...........................................................................5
FIGURE 3 BAR CHARTSUM OF PROFIT FOR EACH CATEGORY.......................................................................................6
FIGURE 4 MAP BASED ON STATES OF USA DETAILS IS SHOWN FOR CITY...................................................................7
FIGURE 5 BAR CHART SUM OF QUANTITY FOR EACH PRODUCT NAME........................................................................7
FIGURE 6 SCATTER PLOT SHOWS SUM OF SALES VS SUM OF PROFIT...........................................................................8
FIGURE 7 PROFIT RATIO DETAILS ARE SHOWN FOR CUSTOMER NAME.......................................................................9
FIGURE 8 DONUT CHART SHOWS NON PROFITABLE CUSTOMERS AND PROFITABLE CUSTOMERS................................10
FIGURE 9 SUM OF PROFIT FOR EACH SUBCATEGORY..................................................................................................11
FIGURE 10 DISCOUNT FOR EACH SUBCATEGORY........................................................................................................12
Introduction
Dataset Overview
Superstore dataset is an e-commerce platform that provides customers with a convenient online
shopping experience.
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The company has been in business for over two decades and has built a strong reputation for
providing high-quality products and excellent customer service. Superstore’s product offerings
include books, toys, clothes, shoes, food, furniture, and other household items.
Company Story
Superstore is a family-owned business with two owners who are committed to providing
customers with the best possible shopping experience.
The company has a small data analytics team that is responsible for analyzing sales data and
identifying areas for improvement. As part of its expansion plans, Superstore is looking to
significantly expand its data analytics team and is seeking candidates with strong analytical
skills.
Over the years, Superstore has experienced steady growth in its online sales, thanks to its
commitment to providing customers with high-quality products and excellent customer service.
However, with the increasing competition in the online retail space, the company recognizes the
need to stay ahead of the curve by leveraging data to gain valuable insights into customer
behavior and preferences.
The company hopes to gain a better understanding of its customers and improve its business
operations.
Data Modeling
The Superstore's approach to data management has been one of the key factors contributing to its
success. The company uses a relational data model, where data is organized into tables with
connections between them. The data is categorized into different areas such as orders, customers,
products, returns, and more, making it easier to store and access data as required.
Superstore has adopted a data-driven approach in managing their data. This means that they rely
heavily on the data collected to make informed decisions. The data is analyzed to identify
patterns, trends, and insights into customer behavior, sales performance, and other business
metrics. This approach also helps in evaluating the effectiveness of marketing strategies and
optimizing inventory management.
The use of key performance indicators (KPIs) is one of the strengths of Superstore's data
approach. KPIs are used to monitor and measure business performance and provide a way to
track progress over time. For instance, Superstore uses KPIs such as sales revenue, gross profit
margin, inventory turnover rate, and customer retention rate to assess the success of their
business strategies and identify areas for improvement.
To make data more accessible and understandable to different stakeholders in the organization,
Superstore uses data visualization tools such as charts, graphs, and dashboards. These tools help
represent data visually, which makes it easier to interpret and analyze and communicate business
insights to various stakeholders in the company, including the management team, sales team, and
marketing team.
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However, one limitation of Superstore's data approach is that it may not capture all the data
required to make informed decisions. For example, while the data model provides a good
overview of sales performance, it may not capture customer feedback and satisfaction levels,
which are also essential in understanding customer behavior. Additionally, the data approach
may rely too heavily on historical data and may not be flexible enough to adapt to changing
market conditions.
Data Strategy
Data Collection: Collect relevant data on Superstore company's financial performance, sales,
customer base, and other relevant metrics.
Data Analysis: Analyze the data to identify key trends, patterns, and insights that can provide
valuable information on the company's performance, customer behavior, and other important
metrics. Use visualizations and statistical techniques to explore the data.
KPI Identification: Identify key performance indicators (KPIs) that are relevant to the Superstore
company's business objectives, such as sales growth, profit margins, customer acquisition, and
retention.
Problem Identification: Identify any problems or challenges faced by the company based on the
analysis of the data. These could include issues with profitability, customer satisfaction, or
market share.
Solution Identification: Based on the identified problems, propose solutions or recommendations
to address them. These could include strategies to increase sales, reduce costs, improve customer
service, or expand into new markets.
Reporting: Present the findings and recommendations in a clear and concise report format, using
visualizations tool (Tableau) help stakeholders understand the insights and implications of the
analysis.
Profit Overview
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Figure 1 The trend of sum of Profit for Order Date Week, Color shows sum of Profit
The data output provided shows the total profit sum for each week starting from December 28,
2014, to the end of July 2016, with the color scale representing higher profits with darker colors.
Analyzing the data, we can identify some interesting trends and patterns. There was a gradual
increase in profits from December 2014 to January 2015, with a significant spike in the second
week of January, indicating a seasonal trend during the New Year period. February 2015 saw a
dip in profits, primarily in the third and fourth weeks. In March 2015, there was a sharp increase
in profit in the third week, which then gradually declined over the following weeks. April and
May 2015 saw high-profit values, suggesting a surge in sales, possibly due to seasonal trends or
promotions. From August 2015 to January 2016, there were fluctuations in profit, and in March
to May 2016, there were no significant patterns. This data can be beneficial to businesses in
informing marketing strategies and cost reduction measures.
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Figure 2 The trend of sum of Profit for Order Date Month. Color shows sum of Profit. The data is filtered on Order Date Year,
which keeps 2018.
The output shows the monthly sales for the year 2018, with some interesting trends and patterns.
March and August 2018 had the highest sales of $13,674 and $12,576, respectively. These
months were likely the peak sales periods due to seasonal trends, promotions, or marketing
campaigns.
December 2018 shows a negative value of -$7,339, which means that the company incurred
losses during this month. This could be attributed to various factors such as a decline in sales,
increased expenses, or poor performance in the market. It is important for the company to
investigate the cause of the negative sales and take appropriate measures to prevent such losses
in the future.
February, June, and July 2018 had relatively low sales, with values of $245, $5,723, and $4,110,
respectively. These months could be considered low sales periods, and it would be helpful for the
company to understand the reasons behind these dips in sales.
The monthly sales data can help the company to identify peak and low sales periods, which can
inform future marketing strategies, inventory management, and budget planning.
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Figure 3 Sum of Profit for each Category. Color shows sum of Profit. The marks are labeled by sum of Profit. The data is filtered
on State, which keeps Iowa.
This output presents the sum of profit for each category, filtered by the state of Iowa. The data is
visualized using color and labels to indicate the sum of profit. The analysis reveals that the
furniture category has the highest sum of profit with $521.00, followed by office supplies with
$346.00, and technology with $319.00.
This suggests that the business may be generating higher profits from sales of furniture and
office supplies in Iowa, compared to technology. This information can be useful for the business
to identify which categories are performing well in Iowa and which ones need improvement.
Further analysis can be done to investigate the reasons for the higher profits in furniture and
office supplies. For instance, the business can check if there is a higher demand for furniture and
office supplies in Iowa or if there are certain promotions or discounts that are driving sales in
these categories.
This output can help the business to make informed decisions about its product offerings and
marketing strategies in Iowa, ultimately leading to increased profitability.
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Figure 4 Map based on States of USA Details is shown for City. The data is filtered on Max Profit city, which keeps True
The data shows the profitability of different cities based on their location. The tool can be used to
identify the most profitable cities in a state or region and make informed decisions based on that
data. For example, a business could use this tool to identify potential locations to expand their
business or to prioritize which locations to invest more in.
Figure 5 Sum of Quantity for each Product Name The context is filtered on Category and Order Date Year. The Category filter
keeps Furniture. The Order Date Year filter keeps 2016. The view is filtered on Product Name, which keeps Electrix Architect's
Clamp-On Swing Arm Lamp, Black, Harbour Creations Steel Folding Chair, Hon Deluxe Fabric Upholstered Stacking Chairs,
Rounded Back, Hon Olson Stacker Stools and KI Conference Tables.
The result reveals that the KI Conference Tables and Hon Olson Stacker Stools have the highest
sum of quantity, both with 20 units. The Electrix Architect's Clamp-On Swing Arm Lamp,
Black, Harbour Creations Steel Folding Chair, and Hon Deluxe Fabric Upholstered Stacking
Chairs, Rounded Back, all have a sum of 18-19 units. This information is helpful for
understanding which furniture products are in high demand and can be useful for inventory
management, pricing, and procurement decisions.
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Customer Overview
Figure 6 Scatter plot shows Sum of Sales vs sum of Profit, Color shows Profit Ratio, Size shows Profit Ratio, Details are shown
for Customer Name.
The data reveals that some customers are making a profit while others are operating at a loss. For
example, Bobby Elias, Brendan Dodson, and Brendan Sweed all have Profit Ratios above 30%,
which suggests that they are generating significant profit margins. On the other hand, customers
such as Barry Franz, Barry Gonzalez, and Becky Martin all have negative Profit Ratios,
indicating that their sales are not generating profits and are instead resulting in losses.
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Figure 7 Profit Ratio (color). Details are shown for Customer Name.
This graph provides insight into the profitability of each customer and can be useful for
identifying which customers are generating the profits and which customers generates loss.
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Figure 8 donut chart Color shows details about Non profitable customers and Profitable Customers. The marks are labeled by
Non profitable customers and Profitable Customers.
The donut chart above illustrates the distribution of customers into two categories: Non
profitable and Profitable Customers. The chart is color-coded to distinguish between these two
groups, with Non profitable customers depicted in one color and Profitable Customers in
another.
As per the chart, it appears that 79.70% of the customers fall under the Non profitable category
while the remaining 20.30% fall under the Profitable Customers category.
It is essential to note that the chart only provides information on the distribution of customers
and does not provide any details on the reasons behind their categorization. Further analysis is
required to determine the factors that lead to customers being classified as either non profitable
or Profitable Customers.
20.30 % of Customers are non-Profitable so why?
The problem
The problem in this situation is that there are customers who have a high volume of sales, but
they are not generating enough profit or are generating losses for the business.
There could be several reasons why some customers are generating losses despite high sales
volume. Some of the possibilities include:
1) High product costs
2) High discount rates
To address this problem, can analyze some customer data to identify patterns and trends in
customer behavior
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Figure 9 Sum of Profit for each Subcategory broken down by Customer Name. Color shows Profit Ratio. The marks are labeled
by sum of Profit. The data is filtered on Category, which keeps Technology. The view is filtered on Customer Name, which keeps
6 of 793 members.
Low Profit Margins
Many of the products listed have negative profit margins or low profit ratios, indicating that the
cost of producing and selling the product is greater than the revenue generated from it.
The 4 customers on the left who has negative losses for the business.
The 2 customers from the right have most profit for the business
For example, Machines sold to Cindy Stewart had a profit ratio of -130.92%, meaning the
company lost money on that sale.
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Figure 10 Discount for each Subcategory broken down by Customer Name. The data is filtered on Category, which keeps
Technology. The view is filtered on Customer Name, which keeps 6 of 793 members.
Discounts can affect profit and loss
in different ways, depending on the specific circumstances. In general, discounts can reduce the
revenue generated from sales, which can lower the gross profit margin. However, discounts can
also help to increase sales volume, which can offset the reduction in revenue and lead to higher
overall profits.
Looking at the provided data, we can see that some customers are receiving discounts on their
purchases of various sub-categories of products. For example, Cindy Stewart is receiving a 70%
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discount on binders, a 70% discount on one of her machine purchases, and 20% discounts on
accessories and supplies.
Grant Thornton is receiving discounts on binders, machines, appliances, and tables.
Becky Martin is receiving discounts on binders, machines, art, appliances, chairs, and storage.
Sean Miller is receiving discounts on binders, machines, art, paper, furnishings, accessories,
supplies, storage, and fasteners.
Raymond Buch is receiving discounts on binders, art, furnishings, accessories, storage, and
phones.
Tamara Chand is receiving discounts on binders, envelopes, and copiers.
For example, customers who receive large discounts on their purchases, such as Cindy Stewart's
70% discount on binders and machine, are likely to generate lower revenue and therefore lower
profits. On the other hand, customers who receive smaller discounts, such as Grant Thornton's
20% discount on appliances, may still generate enough revenue to offset the reduction in price
and result in higher profits overall.
Furthermore, if discounts help to increase sales volume significantly, this can lead to higher
overall profits, even if the profit margin on individual sales is lower. For example, if Sean
Miller's discounts help to increase the total number of items sold, this could lead to higher profits
overall.
Conclusion and Recommendations
After analyzing the data provided, it is clear that the discounts offered have a significant impact
on the profit margin of the business.
Specifically, the large discounts offered on Binders and Machines to customers like Cindy
Stewart and Sean Miller resulted in low or negative profit margins for those items.
It is recommended that the business reevaluates its discount strategy and considers offering
smaller discounts or targeting discounts to items with higher profit margins.
Additionally, it may be beneficial to analyze customer purchasing patterns and offer personalized
discounts to customers who frequently purchase items with higher profit margins.
Finally, I recommend that Superstore should expand its data analytics team to gain a better
understanding of its customers and improve its business operations. The analysis of the
company's sales data can provide valuable insights to inform its marketing strategies, inventory
management, and budget planning.
In my report, I have identified key strategic components of the company and key performance
indicators (KPIs) that need to be considered and evaluated to add value to the company. The
report highlights some interesting trends and patterns in Superstore's sales data that can be used
to inform marketing strategies and cost reduction measures.
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For instance, the report identifies peak and low sales periods that can inform future marketing
strategies, inventory management, and budget planning. Additionally, the report suggests that
Superstore may be generating higher profits from sales of furniture and office supplies in Iowa,
compared to technology. This information can be useful for the business to identify which
categories are performing well in Iowa and which ones need improvement.
Superstore can use the report's valuable insights to make informed decisions about its product
offerings, marketing strategies, and expansion plans. It is crucial that the company continues to
leverage data to gain valuable insights into customer behavior and preferences to stay ahead of
the competition. Expanding its data analytics team will help Superstore to continue to analyze its
sales data and identify areas for improvement.
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