AtliQ Mart: Recommendation for Future Promotions

based on Diwali 2023 & Sankranti 2024 promotions analysis

Codebasics Resume Project Challenge #9

Presented by:
Gerald Simanullang
 Table of Content
1 Introduction to AtliQ Mart

2 Background of the Project

3 Objective of the Project

4 Overview of the Dataset

5 Business Request

6 Visualization, Analysis & Insights

7 Recommendations for future Promotions

 Introduction to AtliQ Mart
Stores distributions: Products and Categories:
P01: Masoor Dal
P02: Sonamasuri Rice
P03: Sunflower Oil Grocery & Staples
P04: Farm Chakki Atta
P05: Scrub Sponge for Dishwash
P06: Fusion Container Set of 3 Home Care
P07: Curtains
P08: Double Bedsheet Set
P09: Body Milk Nourishing Lotion
P10: Cream Beauty Bathing Soap
Personal Care
P11: Doodh Kesar Body Lotion
P12: Lime Cool Bathing Bar
P13: High Glo 15W LED Bulb
Home Appliiances
P14: Waterproof Immersion Rod
P15: Home Essential 8 Product Combo Combo 1
 Background of the Project
&

Diwali Sankranti AtliQ Mart

12 – 18 Nov 2023 10 – 16 Feb 2024

(festive events in India)

25% 33% 50% ₹500 BOGOF

Discount Discount Discount Cashback “Buy one get one free”

Data
 Objective of the Project

Step 3
Give recommendations of promotion strategies for
next period of promotions, based on the analysis.

Step 2
Visualize, analyze and present insights to Sales
Director. (Dashboard with Power BI)

Step 1
Write SQL queries to generate report that answers
5 business questions posed by Senior Executives.
 Overview of the Dataset

fact_events dim_stores
event_id store_id
dim_campaigns store_id city
campaign_id campaign_id
campaign_name product_code dim_products
start_date base_price product_code
end_date promo_type product_name
quantity_sold(before_promo category
)
quantity_sold(after_promo)
1. Business Request
Write SQL queries to generate report that answers
5 business questions posed by Senior Executives.
Business Request 1
Provide a list of products with a base price greater than 500 and that are featured in promo type of ‘BOGOF’.
This information will help us identify high-value products that are currently being heavily discounted, which can be useful for evaluat -
ing our pricing and promotion strategies.

USE retail_events_db;

-- 1. Products with a base price greater than 500 that have a 'buy one get one free' (BOGOF) promotion
SELECT DISTINCT
fe.product_code AS 'Product Code',
dp.product_name AS 'Product Name',
fe.base_price AS 'Base Price (₹)',
fe.promo_type AS 'Promo Type’
FROM fact_events AS fe
INNER JOIN dim_products AS dp ON fe.product_code = dp.product_code
WHERE fe.promo_type = 'BOGOF' AND fe.base_price > 500
ORDER BY fe.base_price DESC;

Output:
Business Request 2
Generate a report that provides an overview of the number of stores in each city. The results will be sorted in descending order of store
counts, allowing us to identify the cities with the highest store presence. The report includes two essential fields: city and store count,
which will assist in optimizing our retail operations.

-- 2. Number of stores in each city, sorted in descending order by store count

SELECT
city AS 'City',
COUNT(store_id) AS 'Store Count’
FROM dim_stores
GROUP BY city
ORDER BY COUNT(store_id) DESC;

Output:
Business Request 3
Generate a report that displays each campaign along with the total revenue generated before and after the campaign. The report
includes three key fields: campaign_name, total_revenue(before_promotion), total_revenue(after_promotion). This report should help
in evaluating the financial impact of our promotional campaigns (Display the values in millions)

Formulas for Revenue After Promo

Discount Discount-based:
50% 33%
25%
25% : x = 0.25 | 33% : x = 0.33 | 50% : x = 0.5

500 Cashback:
₹500
Cashback

BOGOF:
BOGOF
“Buy one get one free”
Business Request 3
Generate a report that displays each campaign along with the total revenue generated before and after the campaign? The report
includes three key fields: campaign_name, total_revenue(before_promotion), total_revenue(after_promotion). This report should help
in evaluating the financial impact of our promotional campaigns (Display the values in millions)

Notes and Logic in calculating Revenue After Promotion for BOGOF

• The values of quantity after promo are NOT INCLUDING the bonus. We could simply knew this because many of the
quantity after promo are not in even number. It means we’re NOT dividing the quantity by 2.

• Because this promo type sacrifices the cost of one product, and we don’t have the data of product cost, we CAN’T make
any decrement to the price,

Based on the logic above, the revenue formula for BOGOF is just the base price multiplied by quantity sold after promo.
Business Request 3
Generate a report that displays each campaign along with the total revenue generated before and after the campaign? The report
includes three key fields: campaign_name, total_revenue(before_promotion), total_revenue(after_promotion). This report should help
in evaluating the financial impact of our promotional campaigns (Display the values in millions)

-- 3. Total revenue before and after promotions for each campaign

SELECT
dc.campaign_name AS 'Campaign Name',
SUM(fe.base_price * fe.`quantity_sold(before_promo)` / 1000000) AS 'Total Revenue Before Promotion (million ₹ )',
SUM(
CASE
WHEN fe.promo_type = '50% OFF' THEN (fe.base_price * fe.`quantity_sold(after_promo)` * (1 - 0.5))
WHEN fe.promo_type = '33% OFF' THEN (fe.base_price * fe.`quantity_sold(after_promo)` * (1 – 0.33))
WHEN fe.promo_type = '25% OFF' THEN (fe.base_price * fe.`quantity_sold(after_promo)` * (1 – 0.25))
WHEN fe.promo_type = '500 Cashback' THEN ((fe.base_price – 500) * fe.`quantity_sold(after_promo)`)
WHEN fe.promo_type = 'BOGOF' THEN (fe.base_price * fe.`quantity_sold(after_promo)`)
END / 1000000
) AS 'Total Revenue After Promotion (million ₹ )’ 171.5M
FROM fact_events AS fe
INNER JOIN dim_campaigns AS dc ON fe.campaign_id = dc.campaign_id
GROUP BY dc.campaign_name; 124.1M

82.6M
Output:
58.1M

Diwali Sankranti
Business Request 4
Produce a report that calculates the Incremental Sold Quantity (ISU%) for each category during the Diwali Campaign. Additionally,
provide rankings for the categories based on their ISU%. The report will include three key fields: category, isu%, and rank order.
This information will assist in assessing the category-wise success and impact of the Diwali campaign on incremental Sales.

-- 4. Incremental Sold Quantity (ISU%) of each category during the Diwali campaign
SELECT
DENSE_RANK() OVER (ORDER BY isu_pct DESC) AS 'Rank',
ctgy AS 'Category',
isu_pct AS 'ISU (%)',
SUM(qty_before) AS 'Quantity Before Promotion',
SUM(qty_after) AS 'Quantity After Promotion’
FROM (
SELECT
dp.category AS ctgy,
SUM(fe.`quantity_sold(before_promo)`) AS qty_before,
SUM(fe.`quantity_sold(after_promo)`) AS qty_after,
SUM((fe.`quantity_sold(after_promo)` - fe.`quantity_sold(before_promo)`))
/ SUM(fe.`quantity_sold(before_promo)`) * 100 AS isu_pct
FROM fact_events AS fe
INNER JOIN dim_campaigns AS dc ON fe.campaign_id = dc.campaign_id
INNER JOIN dim_products AS dp ON fe.product_code = dp.product_code
WHERE dc.campaign_name = 'Diwali'
GROUP BY dp.category
) AS isu_calc
GROUP BY ctgy;
Business Request 4
Produce a report that calculates the Incremental Sold Quantity (ISU%) for each category during the Diwali Campaign. Additionally,
provide rankings for the categories based on their ISU%. The report will include three key fields: category, isu%, and rank order.
This information will assist in assessing the category-wise success and impact of the Diwali campaign on incremental Sales.

Output:
Business Request 5
Create a report featuring the Top 5 products, ranked by Incremental Revenue percentage (IR%), across all campaigns. The report will
provide essential identify the most successful products in terms of incremental revenue across our campaigns, assisting in product
optimization.

-- 5. Top 5 products with their category, ranked by Incremental Revenue Percentage (IR%)
SELECT
DENSE_RANK() OVER(ORDER BY ir_calc.ir DESC) AS 'Rank',
dp.product_name AS 'Product Name',
dp.category AS 'Category',
ir_calc.ir AS 'IR (%)',
ir_calc.total_rev_before / 1000000 AS 'Total Revenue Before Promotion (million ₹)',
ir_calc.total_rev_after / 1000000 AS 'Total Revenue After Promotion (million ₹)’
FROM (
SELECT
product_code,
((SUM(rev_after_promo) - SUM(rev_before_promo)) / SUM(rev_before_promo) * 100) AS ir,
SUM(rev_before_promo) AS total_rev_before,
SUM(rev_after_promo) AS total_rev_after
FROM (
SELECT
*,
base_price * `quantity_sold(before_promo)` AS rev_before_promo,
CASE
WHEN promo_type = '50% OFF' THEN (base_price * `quantity_sold(after_promo)` * (1 - 0.5))
WHEN promo_type = '33% OFF' THEN (base_price * `quantity_sold(after_promo)` * (1 - 0.33))
WHEN promo_type = '25% OFF' THEN (base_price * `quantity_sold(after_promo)` * (1 - 0.25))
WHEN promo_type = '500 Cashback' THEN ((base_price - 500) * `quantity_sold(after_promo)`)
WHEN promo_type = 'BOGOF' THEN (base_price * `quantity_sold(after_promo)` * (1 - 0.5))
END AS rev_after_promo
FROM fact_events
) AS rev_calc
GROUP BY product_code
) AS ir_calc
INNER JOIN dim_products AS dp ON ir_calc.product_code = dp.product_code
ORDER BY ir_calc.ir DESC
LIMIT 5;
Business Request 5
Create a report featuring the Top 5 products, ranked by Incremental Revenue percentage (IR%), across all campaigns. The report will
provide essential identify the most successful products in terms of incremental revenue across our campaigns, assisting in product
optimization.

Output:
2. Visualization, Analysis and Insights
Visualize, analyze and present insights to Sales Direc-
tor. (Dashboard with Power BI)
Visualization Dashboard

https://shorturl.at/xEHX9
 Campaigns Overall
Campaigns Revenue Growth:
• Both campaigns succeeded in boosting overall revenue to more than twice the revenue before the promotions. The
Diwali campaign achieved a revenue growth of 107.6%, while the Sankranti campaign scored an impressive 113.6%.
• However, the revenue-increasing events for both campaigns were below 50%, indicating that there were more failed
events than successful ones. The percentage of successful events during the Diwali campaign was only 39.1%, and
for Sankranti, it was 48.7%.

Campaigns Sold-unit Growth:

• Both campaigns were successful in increasing the number of units sold. The Sankranti campaign showed exceptional
growth with a score of 155.3% in sold-unit growth, whereas the Diwali campaign achieved a sold-unit growth of only
66.2%.
• In terms of sold-unit-increasing events, both campaigns achieved a good score. The sold-unit-increasing events for
both campaigns were exactly the same at 73.3%.
 Store Performances
Aggregation of Both Campaigns

• All the stores were succeeded to increase their revenue. Store STCHE-7 from Chennai came out with the highest
revenue growth at 142.7%, and the lowest was store STMYS-0 from Mysuru at 67.4% revenue growth.

• The Madurai city came out with the highest average of revenue growth which was 120% from their 4 stores. All of
their stores grew their revenue above 100%. The highest was store STMDU-0 with 139.2% revenue growth (rank 5
from all stores), and the lowest was STMDU-3 with 109.2% revenue growth.

• Lowest average of revenue growth came from Visakhapatnam city with score 94.4% from their 5 stores. The best-per-
forming store from there was STVSK-0 with 112.7% revenue growth, and the least-performing store was STVSK-3
with 69.5% revenue growth (rank 49 from all stores).

• There were distinctive characteristics of the top 10 stores by revenue growth. First, their revenue growth exceeded
130% (the 11th place had 117.3%). Second, their BOGOF promotions worked exceptionally well and increased rev-
enue by more than 300% (which means four times the previous amount).

• The bottom 10 stores by revenue and sold-unit growth were the same stores. Their characteristic were revenue and
sold-unit growth uptick stayed below 100%, indicating progress but not surpassing twice the previous amount. Like
the top 10 stores, they also engaged in BOGOF promotions. Although effective, these promotions couldn't quite
match the prowess of the better-performing stores, scoring below the 200% threshold.
 Promotion Type Analysis
25% Discount:
• The 25% discount never worked. Each campaign had 200 events of this promo type and not a single event suc-
ceeded to increase the sales.
• In aggregation of both campaigns, this promo type decreased the number of units sold by 13% and decreased the
revenue by 34.6%.
33% Discount:
• The 33% discount always increased the number of units sold, but sometimes failed to increase the revenue.
• Each campaign had 100 events of this promo type, in Diwali 43 events increased the revenue and in Sankranti only
15 events did.
• In aggregation, this promo type increased the Sold-unit by 43% but decreased the revenue by 4.3%.
• This promo was only applied to product P01 and P02 in both campaign.
50% Discount:
• The 50% discount also always increased the number of unit sold, but never succeeded to increase revenue.
• During Diwali there were 200 events of this promo type and during Sankranti there were 100 events.
• This promo type increased the number of unit-sold by 32.6% but decreased the revenue by 33.6% in aggregation.
 Promotion Type Analysis
₹ 500 Cashback:
• This promo type always succeeded to increase sold-unit and revenue significantly especially in Diwali campaign with
sold-unit increase at 202.4%. During Sankrati campaign, it grew the units sold by 125.3%.
• It was only applied to Home Essential 8 Product Combo (P15) which has base price ₹3000. It means this promo was
equal to 16.67% discount.

BOGOF:
• Like the cashback promo, this promo also always succeeded to increase the number of sold-unit. It was applied more
in Sankrati campaign (300 events) than Diwali (200 events). This is the reason why Sankrati campaign grew the sold-
unit more than Diwali campaign.
• It was applied to P07, P08, P13, P14 both campaign, and was applied to P03 and P04 only in Sankranti campaign.
 Product & Category Analysis
Grocery & Staples Category (P01, P02, P03 and P04)
• This category in fact is the most buy category. Its sold-unit before promotion are always the highest with total 58.1K
sales before Diwali and 68.8K before Sankranti.
• However, during Diwali promotions, this category was featured with wrong promotion types, especially for Sunflower
Oil product (P03) and Farm Chakki Atta product (P04). Both of those products were featuring the ‘25% discount’
which made P03’s sold-unit decreased by 33.8% and P04’s sold-unit decreased by 34.2%.
• Seems like learning from experience, P03 and P04 changed the promotion types for the Sankranti campaign to ‘BO -
GOF’ promotion type and made an exceptional sold-unit growth. The result were: P03 sales increased by 276.4% and
P04 sales increased by 275.1%.
• Meanwhile, Masoor Dal product (P01) and Sonamasuri Rice product (P02) didn’t make any change of promotion type
during both campaign which was ‘33% discount’. The Sold-unit were always increased around 47% during Diwali and
39% during Sankranti, but the revenue always decreased around 1% during Diwali and 7% during Sankranti.
 Product & Category Analysis
Home Care Category (P05, P06, P07 and P08)
• P05 and P06 were always featured with ‘25% discount’ promo, and always decreased the number of units sold.
• Meanwhile, P07 and P08 were always featured with ‘BOGOF’’ promo, and always massively increased the number of
units sold.
• Based on the quantity before promo, the demand of this category was more than two times higher in Diwali (13.3K)
compared to Sankranti (6.4K)
• However, the growth in units sold in Sankranti (162.4%) was more than two times higher compared to Diwali (79.6%)

Personal Care Category (P09, P10, P11 and P12)

• This category is the worst-performing product category. Although the number of unit-sold in both campaign was al -
ways increased, the revenue was always decreased.
• During Diwali campaign, all products from this category were promoted with ‘50% discount’. All the products units-sold
increased around 31%, however the revenue decreased around 34%
• Then, it got worse in the next campaign (Sankranti). The promo type for P09 and P10 was changed to ‘25% discount’,
made the sold unit of these products decreased around 18% and the revenue decreased around 38%.
 Product & Category Analysis
Home Appliances Category (P13 and P14)
• This category always had highest growth in units sold. The reason was perhaps because both products in this cate -
gory always featured with ‘BOGOF’ promo type which is the best-performing promo.
• We can say this product category was the most successful category in term of sold-unit quantity. Its increment in sold-
unit was always above 200%

Combo 1 Category (P15)

• The demand of this product/category was really high before Diwali (16.79K) and descent before Sankranti (5.51K).
This indicates the demand of Home Essentials product is high in Diwali.
• This is the only category that was using Cashback promotion. The revenue during Diwali was increased by 152% and
during Sankranti increased by 87.8%.
3. Recommendations for future promotions
Give recommendations of promotion strategies for next
period of promotions, based on the analysis.
 Recommendation for Future Promo
Keep use all the ‘BOGOF’ and ‘Cashback’ promo. These promo types have proven to always succeeded in
increasing number of units sold as well as the revenue

Do not create the '25% discount' promotion type anymore, as it appears uninteresting to customers. Similarly,
do not offer the '50% discount' promotion. Although '50%' may sound appealing, in reality, the '33% discount’
has proven to result in a greater increase in sold units.

Focus on boosting the sales of products with low demand and high inventory levels especially products in
Home Care and Personal Care categories, which had lowest number of units sold before promotion. If the
profit margin is above 100%, implement the 'BOGOF' (Buy One, Get One Free) promotion. For profit margins
between 33% and 100%, consider using the '33% discount' promotion.

Explore the creation of new product combinations and use cashback promotions. While product combos
based on categories is a possibility, conducting an analysis using Association Rules would be beneficial.
This analysis helps identify products that are commonly purchased together, if we have sales receipt data.
 Special Thanks

Dhaval Patel
Founder of Codebasics
linkedin.com/in/dhavalsays

Hemanand Vadivel
Co-Founder of Codebasics
linkedin.com/in/hemvad

All the team of Codebasics

codebasics.io
youtube.com/@codebasics