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Internship report of sales data analysis

Computer Science and Engineering (Dr. A.P.J. Abdul Kalam Technical University)

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Sales Data Analysis

Submitted in Partial Fulfillment of the

Requirement for the Degree of

Bachelor of Technology
In

Computer Science & Engineering

By

Hamid Saifi (2100900100045)

Under the supervision

of
Mr. Ayush Tripathi
(Assistant Professor)

IEC COLLEGE OF ENGINEERING & TECHNOLOGY, GR. NOIDA

AFFILIATED TO
Dr A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY, UTTAR
PRADESH, LUCKNOW

(September 2024)

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DECLARATION

We hereby declare that this submission is our own work and that, to the best of our knowledge
and belief, it contains no material previously published or written by another person nor
material which to a substantial extent has been accepted for the award of any other degree or
diploma of the university or other institute of higher learning, except where due
acknowledgment has been made in the text.

Name: Hamid Saifi

Roll No: 2100900100045
Date: Feb 12, 2024

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CERTIFICATE

This is to certify that Mini Project Report entitled “Sales Data Analysis” which is submitted
by Hamid Saifi (2100900100045) in partial fulfillment of the requirement for the award of
degree B.Tech in Department of Computer Science & Engineering of A.K.T.U is a record of
the candidate own work carried out under the supervision of Prof. Mr. Ayush Tripathi. The
matter embodied in this mini project is original and has not been submitted for the award of
any other degree.

Date: Feb 12, 2024

Prof. Mr. Ayush Tripathi

Supervisor

(Assistant Professor )
(Department of Computer Science & Engineering)

Prof. Ravinder Prof. Vipin Kr Kushwaha Prof. (Dr.) B. Sharan

MPIA Coordinator HoD-IT/CSE-AI&ML Dean Academics &
HOD (CSE)

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ACKNOWLEDGEMENT

It gives us a great sense of pleasure to present the report of the B. Tech Mini Project
undertaken during B. Tech. Fourth Year. We owe special debt of gratitude to Professor Mr.
Ayush Tripathi, Department of Computer Science & Engineering, IEC College Of
Engineering & Technology, Gr. Noida for his/her constant support and guidance throughout
the course of our work. His/her sincerity, thoroughness and perseverance have been a constant
source of inspiration for us. It is only his/her cognizant efforts that our endeavors have seen
light of the day.

We also take the opportunity to acknowledge the contribution for his/her full support and
assistance during the development of the project. We also would not like to miss the
opportunity to acknowledge the contribution of all faculty members of the department for their
kind assistance and cooperation during the development of our project. Last but not the least,
we acknowledge our parents and friends for their constant support throughout the project.

Name: Mohan Saxena

Roll No: 2100900100057

Date: Jan 15,2024

Name: Md. Yousuf Sayeed

Roll No: 2100900100056

Date: Jan 20,2024

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ABSTRACT

This project focuses on analyzing sales data from a retail company to extract meaningful
insights that can inform business strategies. Using Python libraries such as Pandas, NumPy,
Matplotlib, Seaborn, and MySQL, the analysis was performed on sales data retrieved from a
MySQL database. The goal was to identify sales trends, top-performing products, regional
differences, and the relationship between product quantity and revenue. Data preprocessing
steps included handling missing values, converting data types, and filtering irrelevant records
to ensure accurate results. Exploratory data analysis (EDA) revealed seasonal sales patterns,
with higher revenue during holiday periods. The analysis also highlighted a few products
driving most of the revenue, and certain store locations outperformed others in sales. A strong
positive correlation was found between the quantity sold and revenue generated. Based on
these findings, recommendations were made for inventory optimization, targeted marketing,
and regional strategy improvements. This analysis provides a comprehensive understanding of
sales performance, offering actionable insights to enhance decision-making and improve
business outcomes. Future work could involve predictive analytics and real-time data
integration for dynamic decision-making.

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TABLE OF CONTENTS Page

DECLARATION ................................................................................................... ii

CERTIFICATE ..................................................................................................... iii

ACKNOWLEDGEMENTS .................................................................................. 1

ABSTRACT ........................................................................................................... 2

Chapter 1: (Introduction)………………………………………………………… 4

Chapter 2: (Tools & Technologies) …………………………………...…….…… 5

Chapter 3: (Data Collection) ……………………………………...……………… 6

Chapter 4: (Data Preprocessing) ……………………………………….………… 7-8

Chapter 5: (Exploratory Data Analysis) …………………………..……………… 9-11

Chapter 6: (Key findings) ……………………………………………….…………12

Chapter 7: (Conclusion) …………………………………………….…………… 13

Chapter 8: (Recommendation) …………………………………………………… 14

Chapter 9: (Future work) ………………………………………………………… 15

Chapter 10: (References) ………………………………………………………… 16

Chapter 5: (Certificate of Internship) ….…………………………..……………… 17

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1. Introduction:

The objective of this project is to analyze sales data from a retail company to uncover trends
and insights that can support strategic business decisions. Using a combination of data analysis
tools and techniques, such as Python's Pandas, NumPy, Matplotlib, Seaborn, and MySQL, the
project focuses on identifying key patterns in sales performance, including seasonal trends,
top-performing products, and regional sales variations. The dataset, which includes sales
transactions, product details, and store locations, was retrieved from a MySQL database and
preprocessed for accuracy and consistency. Through exploratory data analysis (EDA), the
project aims to provide actionable insights that can improve inventory management, optimize
marketing efforts, and enhance overall sales strategies. By understanding the relationships
between different factors such as product quantity and revenue, this analysis helps in making
data-driven decisions that can lead to better business outcomes.

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2. Tools and Technologies:

This project employs a combination of tools and technologies to extract, process, and analyze
sales data effectively.

• Python: Python is the primary programming language used for data manipulation and
visualization.

• Libraries:

 Pandas: Essential for data manipulation, cleaning, and analysis. It provides

efficient data structures like DataFrames to work with structured data.

 NumPy: Used for numerical calculations and handling arrays, essential for
statistical analysis and complex data operations.

 Matplotlib: A plotting library used for basic visualizations such as line

charts and bar graphs to track sales trends and product performance.

 Seaborn: Built on top of Matplotlib, Seaborn simplifies creating advanced

visualizations such as heatmaps and pair plots for better understanding of
data relationships.

• MySQL: MySQL is the relational database management system used to store and
manage sales data.

• Jupyter Notebook: Jupyter Notebooks is used for interactive coding, testing, and
visualizing results within a single document, providing a flexible environment for
analysis.

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3. Data Collection:

The sales data was sourced from a MySQL database, where the data was stored in several
related tables. The main tables involved in the analysis are:

sales: Contains individual transaction details, including the date of sale, product ID, quantity
sold, and revenue generated.

products: Contains details about the products, such as product ID, name, category, and price.

stores: Information about different store locations.

SQL Query to Extract Data:

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4. Data Preprocessing:

The raw sales data was imported into a Pandas DataFrame using the `mysql.connector` library
to establish a connection with the MySQL database. After retrieving the data, the following
preprocessing steps were performed:

• Handling Missing Data: Checked for missing values in critical columns such as
‘quantity’, `revenue`, and ‘product_name’. Missing values were imputed or rows with
missing data were dropped if necessary.

• Date Formatting: The `date` column was converted into a datetime format for easier
time-based analysis.

• Data Type Conversion: Columns such as `quantity` and `revenue` were converted to
numeric types to ensure proper calculations.

• Data Filtering: Filtered out irrelevant records, such as returns or sales outside the
specified time range.

Code for Data Preprocessing:

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5. Exploratory Data Analysis (EDA)

The goal of EDA is to summarize the main characteristics of the data and identify patterns or
trends. Below are the key insights derived from the analysis:

5.1. Descriptive Statistics

A summary of the basic statistics of the sales data, including the total revenue, average revenue
per sale, and total quantity sold.

5.2. Sales Trend Over Time

Using Matplotlib and Seaborn, we visualized the sales trend over time to identify seasonal
patterns or trends.

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5.3. Product-wise Revenue Analysis

We performed a breakdown of total revenue by product category to identify the highest-selling

products.

5.4. Sales Distribution by Region

We explored how sales are distributed across different store locations. This helps in
understanding regional performance.

5.5. Correlation Analysis

We conducted a correlation analysis to see if there is any relationship between product quantity
and revenue.

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6. Key Findings:

• Sales Trend: The sales exhibited clear seasonal trends, with higher sales during certain
months (e.g., November and December, possibly due to holiday shopping).

• Top Products: A small number of products contributed the majority of the revenue,
indicating the potential for product focus and inventory management.

• Regional Performance: Some regions outperformed others, suggesting that targeted

marketing or resource allocation could optimize performance in underperforming locations.

• Quantity vs. Revenue: A strong positive correlation between quantity sold and revenue,
indicating that higher quantities generally led to higher revenue.

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7. Conclusion:

This analysis provides valuable insights into sales trends, product performance, and regional
differences. Businesses can leverage these insights for:

• Inventory Management: Focusing on high-performing products and understanding

demand fluctuations.

• Sales Strategy: Identifying peak sales periods and crafting marketing campaigns
around these times.

• Regional Optimization: Allocating resources more effectively to underperforming

regions.

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8. Recommendations:

Based on the sales data analysis, here are key recommendations for improving business
performance:

• Focus on High-Performing Products: Identify top-selling products and allocate resources

to promote these items through targeted marketing and optimized inventory management.
Consider bundling complementary products to increase overall sales.

• Leverage Seasonal Trends: If sales data shows seasonal fluctuations, plan marketing
campaigns around peak periods and offer discounts during slower months to maintain steady
revenue flow.

• Implement Customer Segmentation: Analyze customer purchasing behaviors and segment

them into groups (e.g., frequent buyers, high-value customers). Tailor marketing efforts and
loyalty programs to these segments to drive retention and repeat sales.

• Enhance Regional Sales Strategies: For regions with lower sales, identify barriers such as
delivery issues or lack of awareness. Customize strategies for each region, focusing on
targeted promotions or regional product offerings.

• Use Data-Driven Pricing Strategies: Adjust pricing based on demand patterns and
competitor analysis. Implement dynamic pricing or discount strategies to optimize sales,
especially during high-demand periods.

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9. Future Work:

For future work, the following areas can be explored to further enhance the sales data analysis
and decision-making processes:

• Advanced Predictive Analytics: Implement machine learning models such as Random

Forests or XGBoost to predict sales based on multiple variables like seasonality,
promotions, and customer behavior. This can improve sales forecasting accuracy and help
optimize inventory and staffing.

• Customer Lifetime Value (CLV) Analysis: Develop models to predict customer lifetime
value, allowing businesses to focus on acquiring and retaining high-value customers.
Understanding the long-term value of a customer can help in prioritizing marketing efforts
and resource allocation.

• Real-Time Data Analytics: Build real-time dashboards using tools like “Streamlit” or
“Power BI” to track key metrics such as sales, customer engagement, and inventory. This
would enable management to make quicker, data-driven decisions.

• Sentiment Analysis: Integrate customer feedback and reviews into the analysis to gauge
sentiment and understand product satisfaction. Sentiment analysis can provide insights into
customer preferences and guide product development or marketing strategies.

• A/B Testing and Experimentation: Set up A/B tests for different marketing campaigns,
pricing strategies, or promotional offers to assess their impact on sales. This can lead to
more effective, evidence-based decision-making.

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10. References:

[1] Python Documentation: [https://docs.python.org/](https://docs.python.org/)

[2] Pandas Documentation: [https://pandas.pydata.org/pandas-

[3] docs/stable/](https://pandas.pydata.org/pandas-docs/stable/)

[4] Matplotlib Documentation:

[4] https://matplotlib.org/stable/contents.html](https://matplotlib.org/stable/contents.html)

[5] Seaborn Documentation: [https://seaborn.pydata.org/](https://seaborn.pydata.org/)

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11. Certificate of Internship:

This Certificate is provided by Appwars Technologies located in Noida.

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