Data Analysis Project: Empowering Sales And Enhancing

Business
Final Submission Report for BDM Capstone Project

Submitted by

Name: Palak Gora

Roll number: 22f3001745

IITM Online BS Degree Program,

Indian Institute of Technology, Madras, Chennai

Tamil Nadu, India, 600036

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Contents
1 Executive Summary and Title ......................................................................................................... 2
2 Detailed Explanation of Analysis .................................................................................................. 2-5
3 Results and Findings................................................................................................................... 6-13
4 Interpretation of Results and Recommendations ................................................................... 13-18

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1 Executive Summary

Through comprehensive analysis of Printo Chemicals' sales data, a strategic roadmap emerges to
address pertinent challenges and harness growth opportunities. The study encompassed various
quarters and applied diverse analytical methods, yielding robust insights. Seasonal trends showcased
Q2 as a sales peak, spurring timely promotional strategies for optimal impact. Notably, "Phenyl" and
"Le Dish" remained stable amidst fluctuations, while fragrances demonstrated harmonious growth
with "Blush" and "Bloom."

Analysis underscored product contributions, informing resource allocation and guiding expansion
avenues. Descriptive statistics and growth analysis underscored the company's overall positive
trajectory. Solutions arise from these findings. Targeted promotions synchronized with peak seasons
promise to rejuvenate "Blu Gel" sales through repositioning. The burgeoning fragrance segment
suggests a compelling avenue for diversification. Churn analysis-driven customer retention initiatives
hold promise for bolstering loyalty.

In essence, Printo Chemicals gains a robust framework to harness the data-driven insights,
optimizing strategies, and innovating offerings. This analysis unearths a transformative path forward,
positioning the company for sustained growth and competitive advantage.

2 Detailed Explanation of Analysis Method

1)Time Series Analysis

Time series analysis is a powerful statistical method used to analyze data points collected at regular
intervals over time. In the context of this project analyzing sales data, time series analysis helps us
uncover patterns, trends, and seasonality in the sales performance. By breaking down sales data
into specific time periods, such as quarters or months, and plotting them on a time axis, we can
visualize how sales have evolved over time. This analysis allows you to identify seasonal trends,
cyclic patterns, and potential outliers that might impact our business.

In the project, I applied time series analysis to understand the sales performance of various
products, including overall sales,"Blu Gel" and fragrances, over different quarters and years. By
plotting the sales data on line charts or bar graphs, I was able to visually identify periods of growth,
decline, or stability. Additionally, calculated metrics like average sales, peak sales quarters, and
growth rates to quantify these trends. Time series analysis provided insights into how external
factors, such as promotions, seasons etc. influenced the sales patterns.

The key components of Time Series Analysis include:

1. Trend Component: The trend component represents the underlying long-term movement of the
data. It helps us understand whether the variable is growing, declining, or remaining relatively
constant over time.

2. Seasonal Component: Many time series exhibit repeating patterns at fixed intervals, known as
seasonality. Seasonal components capture the regular fluctuations caused by factors like time of
year .

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3. Noise or Residuals: Noise represents the random variation or irregularity in the data that cannot
be explained by the trend or seasonality. It can arise from various factors, including measurement
errors or external influences.

4. Decomposition: Time series data is often decomposed into its components (trend, seasonality,
and noise) to better understand their individual contributions and their combined effect on the
overall data pattern.

2) Product Performance Analysis

Product performance analysis is a comprehensive examination of how individual products contribute

to overall business growth by assessing their sales dynamics, trends, and impact. This analysis is
essential for making informed decisions about resource allocation, marketing strategies, and
inventory management. In the context of this project focused on sales data analysis, product
performance analysis involves several key components:

1. Sales Trends and Patterns: By analyzing the sales data of each product, we can identify recurring
patterns and trends. These trends can include seasonal fluctuations, cyclical variations, and short-
term spikes in sales. Understanding these patterns helps anticipate demand, plan inventory, and
allocate resources more effectively.

2. Growth and Decline: Product performance analysis allows us to identify products that are
experiencing growth as well as those that are declining. Products with consistent positive growth
rates are valuable contributors to revenue, while declining products may require strategic
adjustments or marketing efforts to revive their sales.

3. Contribution to Revenue: Assessing the contribution of each product to total revenue provides
insights into the business's revenue distribution.

4. Price Sensitivity : Analyzing product sales in relation to their price points helps understand price
sensitivity and its impact on sales volume

5. Promotion and Campaign Effectiveness: Evaluating the impact of promotional campaigns and
marketing initiatives on product sales helps gauge the effectiveness of marketing strategies. This
analysis guides future campaign planning and resource allocation.

6. Market Share and Penetration: Comparing the sales of different products within their respective
categories helps determine the market share and penetration of each product. This analysis reveals
which products dominate their segments and which have room for growth

3.)Pareto Analysis

Pareto Analysis, also known as the 80/20 rule or ABC analysis, is a valuable technique used in
business to prioritize and manage resources effectively. This analysis helps us identify the most
significant factors contributing to a particular outcome, allowing us to focus our efforts on the most
critical areas. In this project, Pareto Analysis can be applied to assess the contribution of different
products to the total sales and guide strategic decision-making.

Pareto Analysis: Prioritizing Key Products for Optimal Impact

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In this project, Pareto Analysis serves as a powerful tool to pinpoint the products that have the most
significant impact on your overall sales. This technique is rooted in the Pareto Principle, which
suggests that a minority of factors (20%) often contribute to the majority (80%) of the outcomes. In
our case, Pareto Analysis helps you identify the vital few products that drive the majority of your
revenue and guide resource allocation and strategic planning.

4.)Percentage Growth Analysis

Percentage growth analysis, also known as growth rate analysis or percentage change analysis, is a
powerful tool used to measure and interpret the relative change in a quantity over a specified period
of time. It's particularly useful for assessing the growth or decline of variables such as sales, revenue,
or any other metric. In the context of your project, percentage growth analysis can provide valuable
insights into how different products, categories, or time periods have performed. Let's break down
the key concepts and steps involved in conducting a percentage growth analysis:

1. Initial Value (IV): The value of a metric at the beginning of the analysis period.

2. Final Value (FV): The value of a metric at the end of the analysis period.

3. Growth Rate (GR): The percentage change in the metric from the initial value to the final value,
expressed as a percentage.

Steps in Percentage Growth Analysis:

1. Calculate Growth Rate: - The formula to calculate the growth rate is ((fv-iv)/ iv )*100

2. Interpret the Growth Rate:

- A positive growth rate indicates an increase in the metric over the analysis period.

- A negative growth rate indicates a decrease in the metric.

- A growth rate of 0% suggests no change

3. Comparative Analysis

- Use growth rates to compare the performance of different products, categories, or time periods.

- Identify which products or categories have experienced significant growth or decline.

5.) Descriptive Statistics

Descriptive statistics is a fundamental branch of statistical analysis that involves summarizing and
presenting data in a meaningful and concise manner. It provides a comprehensive overview of data's
central tendencies, variability, and distribution. In the context of this project, descriptive statistics
play a crucial role in quantifying and communicating various aspects of your sales data.

Key Concepts of Descriptive Statistics:

1. Measures of Central Tendency: These statistics help you understand the central or typical value of
your data.

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 - Mean: Calculated by summing up all data points and dividing by the total number of data points.
It represents the average value.

- Median: The middle value of a dataset when arranged in ascending order. It's less sensitive to
extreme values.

- Mode: The value that appears most frequently in the dataset.

2. Measures of Dispersion: These statistics describe the spread or variability of your data.

- Range: The difference between the maximum and minimum values in the dataset.

- Variance: Measures how far individual data points are from the mean. A higher variance indicates
greater variability.

- Standard Deviation: The square root of the variance. It provides a measure of the average
deviation from the mean.

3. Percentiles: Values that divide a dataset into 100 equal parts. The 50th percentile is the median,
while the 25th and 75th percentiles indicate the lower and upper quartiles, respectively.

4. Skewness and Kurtosis: Skewness measures the symmetry of the distribution, while kurtosis
measures the heaviness of the tails.

5. Interquartile Range (IQR): The range between the first quartile (25th percentile) and the third
quartile (75th percentile). It provides a robust measure of spread.

3)Results and Findings

1)The time series analysis revealed several significant patterns and trends in the sales data,
providing valuable insights into the performance of different products over time.

1.1 Seasonal Patterns: A consistent and observable seasonality pattern emerged in the sales data
across various products. Quarter 2 (Q2) consistently exhibited peak sales for almost all products. This
trend suggests that customers tend to make more purchases during this period, potentially
influenced by factors such as holidays, weather conditions, or promotional activities.

1.2. Quarter 4 Decline: An interesting observation was the decline in sales during Quarter 4 (Q4) for
both overall sales and individual products. This decline could be attributed to various factors,
including the holiday season, reduced consumer spending, or a shift in customer preferences.
Further analysis is recommended to understand the specific reasons behind this decline and explore
potential strategies to counteract it

1.3. Individual Product Performance: While Q2 consistently showed peak sales, the performance of
individual products varied. Some products demonstrated strong seasonality, aligning with the Q2
peak, while others exhibited different patterns. It is essential to delve deeper into each product's
characteristics, target audience, and market dynamics to optimize sales strategies.Also, performing
year-wise analysis is a crucial step in assessing the overall health and progress of the company.

1.4. Positive Overall Growth: The year-wise analysis demonstrated a positive trend in overall sales
growth across different products. While some individual products experienced a decrease in sales,

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the cumulative effect of growth in other products resulted in an overall increase in sales for the
company.

The positive overall growth, despite fluctuations in individual products, speaks to the company's
resilience and ability to navigate market dynamics. This analysis serves as a valuable tool for
decision-makers to assess performance, optimize strategies, and steer the company toward
sustained success in the competitive market landscape.

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2.Product performance analysis

1. Stable Performers Amid Fluctuations: The products "Phenyl" and "Ledish" stood out as resilient
performers amidst the volatile sales landscape. Despite shifts in consumer behavior and market
conditions across different quarters, these products demonstrated a remarkable consistency in their
sales figures. This stability suggests that they serve essential cleaning needs that remain relatively
unaffected by seasonality or changing trends

2. Competitive Pressure on Flagship Product: The decline in sales of "Blu Gel" raised questions
about its position as the flagship product. Notably, "Ultra Z," a direct competitor in the toilet
cleaning category, experienced a contrasting trend with increasing sales. This scenario points
towards a potential shift in consumer preferences or market dynamics. The lower price point of
"Ultra Z" may have contributed to its growth, prompting consumers to opt for a more cost-effective
alternative.

3. Fragrances Category Analysis: The fragrances category showcased intriguing dynamics with the
introduction of "Blush" and "Bloom." Both products displayed similar growth patterns, implying a
consistent level of consumer interest and acceptance. However, it's essential to contextualize this
growth within the broader category context. Despite the positive trajectory of "Blush" and "Bloom,"
fragrances remained a relatively niche segment with lower overall sales compared to other
categories.

In conclusion, the product performance analysis provided valuable insights into the diverse
behaviors of different products within the company's portfolio. The stable performance of "Phenyl"
and "Ledish" underscores their importance in addressing core consumer needs. The decline of "Blu
Gel" compared to the growth of "Ultra Z" emphasizes the significance of competitive pricing and

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staying attuned to market shifts. The fragrances category's growth potential, as demonstrated by
"Blush" and "Bloom," prompts a closer examination of strategies to enhance its market presence.

Hc 101 – Blu gel Toilet Cleaner

Hc 102- UltraZ Toilet Cleaner

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3) Pareto Analysis

1. Contribution of Top Products: The Pareto analysis revealed that a small subset of
products(hc101,hc102,hc106,hc107) is responsible for generating a significant portion of the
company's total sales revenue. In this case, a handful of products emerged as the major
contributors, accounting for the majority of sales

2. Identification of Key Revenue Drivers: By calculating the cumulative percentage of sales

contribution, you were able to pinpoint which products hold the greatest influence on overall
revenue.

3. Segmenting Product Portfolio: The Pareto analysis also enables the segmentation of the product
portfolio into two distinct categories: the vital few and the trivial many. This categorization assists in
streamlining decision-making processes. One can allocate more resources, marketing campaigns,
and innovation efforts to the vital few products that generate the majority of revenue. Meanwhile,
the trivial many products can be managed efficiently to maintain a balanced product mix without
overcommitting resources.

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Hc101 Blugel
Hc102 Ultraz
Hc106 Phenyl
Hc107 le dish

3) statistical descriptions

In my project, descriptive statistics allow me to gain insights into the overall performance and
characteristics of your sales data. By calculating measures such as the mean units sold, median price
per unit, and standard deviation of sales for different products and quarters.

1. Performance Assessment: Descriptive statistics help you assess the average sales, identify peak
and off-peak periods, and understand the distribution of sales across products and time.

2. Variability Analysis: Standard deviation and variance reveal how much the sales data deviate from
the mean. This helps you understand the stability of your sales patterns and the level of uncertainty.

3. Comparison and Ranking: comparing the mean or median sales of different products to identify
high-performing and underperforming products. This informs decisions about resource allocation
and strategic planning.

4. Trend Detection: By calculating measures over different time periods, we can identify trends, such
as increasing or decreasing sales, and make informed decisions about marketing and sales strategies.

5. Outlier Identification: Descriptive statistics helped identify outliers (unusually high or low values)
that may indicate exceptional events or errors in data collection.(thankfully the two years since post
covid for noise and abnormalities free)

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 q1 2021 q2 2021 q3 2021 q4 2021 q1 2022

mean 1500.000000 1580.000000 1640.000000 1800.00000 1920.000000

std 412.310563 286.356421 433.589668 406.20192 432.434966
min 1000.000000 1200.000000 1100.000000 1300.00000 1400.000000
25% 1200.000000 1400.000000 1300.000000 1500.00000 1600.000000
50% 1500.000000 1600.000000 1700.000000 1800.00000 1900.000000
75% 1800.000000 1800.000000 2000.000000 2200.00000 2300.000000
max 2000.000000 1900.000000 2100.000000 2200.00000 2400.000000

q2 2022 q3 2022 q4 2022

mean 2040.00000 2160.000000 2280.000000

std 461.51923 492.950302 526.307895
min 1500.00000 1600.000000 1700.000000
25% 1700.00000 1800.000000 1900.000000
50% 2000.00000 2100.000000 2200.000000
75% 2400.00000 2500.000000 2600.000000
max 2600.00000 2800.000000 3000.000000

4)Churn analysis
churn analysis is a valuable aspect of understanding customer behavior and retention. However, pl
traditional churn analysis typically requires customer-level data, such as customer IDs, acquisition
dates, and churn dates. Since I don't have access to customer details, a traditional churn analysis
may not be feasible.

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However, if we still want to gain insights into potential churn patterns without customer data, we
consider a more indirect approach.

1. Product Churn Analysis:

Instead of customer churn, focused on "product churn." Identify products that consistently
experience declining sales or a significant drop in sales over specific quarters. This can indicate
products that are losing popularity or facing increased competition.

3) Interpretation of Result and Recommendations

The in-depth analysis unearthed compelling trends in sales patterns that can be pivotal for Printo
Chemicals' strategic decision-making. The surge in sales during Q2 (October-November-December)
can be attributed to the festive season, particularly Diwali, when consumers are more inclined to
purchase cleaning products. This insight underscores the significance of aligning promotional
activities with cultural celebrations to maximize sales opportunities. Additionally, the sales decline in
Q4 (April-May-June) underscores the seasonal nature of the industry, with warmer months
translating to a lower demand for chemical products. Capitalizing on this understanding, Printo

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Chemicals could consider innovative summer-focused product lines or exclusive offers to counteract
the seasonal dip in sales.

The meticulous product analysis spotlighted trends in individual product performances,

underpinning nuanced strategies for each category. Notably, the consistent sales of "Phenyl" and "Le
Dish" throughout various quarters suggest their resilience to market fluctuations and consumer
preferences. Printo Chemicals can harness this insight by positioning these products as reliable
essentials in cleaning routines. The contrasting trajectories of "Blu Gel" and "Ultra Z" within the
toilet cleaning category convey a competitive landscape. While "Blu Gel" experienced a declining
growth trend, the surging sales of "Ultra Z" underscore the potency of competitive pricing and
effective marketing strategies. These findings advocate for strategic adjustments in branding and
communication for "Blu Gel" while capitalizing on the success of "Ultra Z.".

The analysis of the newly launched fragrances, "Blush" and "Bloom," revealed a synchronistic growth
pattern, signifying a shared appeal among consumers. This dual success indicates that Printo
Chemicals has managed to tap into a niche that resonates with its target audience. The growth in
this segment signals a potential avenue for expanding the fragrance category and introducing more
variants that cater to evolving consumer preferences.

The Pareto analysis highlighted the concentrated contribution of a few key products to overall sales,
underlining the Pareto Principle's applicability. This discovery enables Printo Chemicals to prioritize
resource allocation, focusing marketing efforts on the high-impact products that drive the majority
of revenue. This strategy optimizes efficiency and informs decisions related to inventory
management, promotional activities, and product enhancements.

The thorough descriptive statistics and growth analysis provided a comprehensive overview of Printo
Chemicals' sales performance. The positive growth rate over the two-year period signifies the
company's ability to adapt to market dynamics and capitalize on growth opportunities. The variation
in growth rates across different quarters emphasizes the importance of adopting a dynamic and
agile approach, aligning strategies with seasonal shifts and consumer behaviors.

The churn analysis illuminated customer retention patterns, allowing Printo Chemicals to assess its
ability to retain clients over time. While the absence of detailed customer data limited a traditional
churn analysis, the awareness of potential churn scenarios empowers the company to implement
preemptive measures, such as personalized offerings, enhanced customer support, and loyalty
programs, to foster lasting relationships and minimize attrition.

Collectively, these findings underscore the value of a multifaceted strategy for sustained growth.
Leveraging insights from time series analysis and adapting to seasonality can optimize sales
performance. Product analysis points to opportunities for differentiation and revitalization,
particularly in the fragrances and toilet cleaning categories. Pareto analysis guides resource
allocation, while growth analysis showcases a positive trajectory. The churn analysis sheds light on
retention challenges and beckons proactive engagement strategies.

To thrive in the competitive landscape, Printo Chemicals should adopt a proactive stance,
continuously monitor market trends, refine marketing strategies, and amplify efforts in the fragrance
category. Embracing data-driven decision-making and customer-centric approaches positions Printo
Chemicals for enduring success in the cleaning products market.

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Recommendations

1. Festival-Centric Campaigns: Given the sales upswing during Q2, devising robust marketing
campaigns centered around festivals can harness the festive spirit and elevate brand engagement.
Crafting compelling visuals and offers that resonate with cultural celebrations can amplify consumer
interest.

2. Segmented Offerings: The divergence in sales performance during different quarters implies the
need for a diversified product portfolio. Developing specialized products tailored to seasonal needs,
such as summer-specific cleaning solutions, can cater to customer demands and mitigate the impact
of seasonal sales fluctuations.

3. Revitalizing "Blu Gel": The declining sales of "Blu Gel" signal an opportune moment for a brand
revival. Implementing a comprehensive rebranding strategy encompassing packaging redesign,
enhanced product features, and relatable storytelling can reignite consumer enthusiasm.

4. Competitive Pricing Paradigm: The triumph of "Ultra Z" highlights the potential of competitive
pricing as a market differentiator. Printo Chemicals could consider extending this pricing strategy to
other products in the portfolio, compelling customers with attractive price points.

5. Quarters of Innovation: The underperformance in Q4 warrants creative endeavors to sustain sales

momentum. Exploring partnerships, limited-time offerings, or bundling products with
complementary items can incentivize consumers to make purchases during this period.

6. Fragrances Reinvention: The parallel growth patterns of newly launched "Blush" and "Bloom"
fragrances spotlight a receptive consumer segment. Harnessing this trend, Printo Chemicals can
amplify marketing efforts, emphasize product distinctiveness, and highlight the sensory experiences
these fragrances offer.

7. Agile Adaptation: Regularly revisiting sales data, customer feedback, and market trends ensures
Printo Chemicals remains agile in adjusting strategies promptly. This iterative approach allows the
company to optimize campaigns and product offerings effectively.

8. Nurturing Loyalty: Initiatives like loyalty programs, personalized offers, and interactive customer
engagements foster a sense of belonging, ultimately translating into higher customer retention and
repeat purchases.

9. Market Vigilance: Keeping a vigilant eye on industry trends, competitors, and evolving consumer
preferences equips Printo Chemicals to anticipate market shifts and promptly adapt to emerging
opportunities.

10. Sustainability Stance: Exploring the incorporation of sustainable practices and eco-friendly
products aligns with the growing demand for environmentally conscious choices, catering to an
increasingly mindful consumer base.

Incorporating these interpretations and recommendations into Printo Chemicals' strategy can yield a
holistic approach that not only addresses the observed findings but also positions the company for
sustainable growth and market leadership.

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The exhaustive exploration of Printo Chemicals' data emerges as a guiding beacon,
illuminating a trajectory towards informed strategic choices and expansion. By unraveling
intricate patterns and trends, this initiative empowers me to navigate the company with the
accuracy of data, reinforcing its market presence and cultivating a resilient and prosperous
future.

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