imt 589- business intelligence final recommendation
TRANSCRIPT
Recommendations for Sales Channels
Akshay Ajgaonkar, Rahul Bihariya, Deepa Rao, Kameron So
Channel Group 2 in IMT 589A Winter 2015
Information School, University of Washington
Analysis Context
Goals
Assumptions
▪ Using historical data, provide recommendations for direct and indirect
channels
▪ Optimize for sales profit and sales amount
▪ Two years worth of data alone not enough to make recommendations
▪ Companies are motivated by growth
Information School, University of Washington
Channel Analysis: Total Sales and Profit
Information School, University of Washington
Key Metrics:
Total Sales by Channel
Total Profit by Channel
YoY Channel Performance
What Channel should we expand and discontinue?
2
1
Channel Analysis: YoY Profits
Information School, University of Washington
3
4
On-line channel accounts for the
least sale and profit
Indirect channels outperform direct,
accounts for most profit and revenue
On-line channel grew the most out of
all channels
Outlet channel performed the worst
1
2
3
4
Insights from BI:
Channel Analysis: Targets
Information School, University of Washington
On-line channel meets financial
goals while Outlet channels do
not reach break even target
Department stores and
Franchise outperform targeted
sales
6
5
56
Channel Analysis: Recomendations
Information School, University of Washington
Based on data, we’d recommend:
Expand
On-line
ChannelYoY Performance
Discontinue
Outlet
ChannelYoY Performance
Hold
Indirect
ChannelsTotal Sales
Total ProfitSales Target Sales Target
Sales Target
Channel Product Strategy: Product Sales Distribution
Information School, University of Washington
What products should each Channel feature?
1
Product Sales
Product Profit
Key Metrics:
Product Mix
Sales pattern is similar
across channels, with
Women’s and Men’s
apparel as most sold
items
1
Channel Product Strategy: Profit and Margins
2
3Most Profitable products
are in the mid range of
Margin Percentage
Highest Margin products
do not account for a high
proportion of profit
2
3
Channel Product Strategy: YoY Performance
5
4
Accessory accounted for
most % sales quantity loss
of all categories
Bucking all trends, Apparel
categories grew in the On-
line channel, with Men’s
Apparel performing the
best YoY
4
5
Channel Product Evaluation
Information School, University of Washington
Based on data, we’d recommend:
Feature High Margin
Complementary Goods
Increase Sales Cost for
Profit Margins
All Channels
Feature Accessories category to capitalize
on potential Women’s Apparel Pairing
On-line Only
Feature underperforming products in the
Men’s Apparel category
All Channels
For products leading in sales and profit (i.e.
Strapless dress, Dress), increase sales price
to increase profit margins
Overall Channels Assessment
Information School, University of Washington
1
1 In both 2013 and 2014, sales dip dramatically starting in
October until December
Key Metrics:
Total Sales (all Channel)
Total Profit (all Channel)
Seasonality
Channel Evaluation
Information School, University of Washington
Based on data, we’d recommend:
Channel Marketing
and Product Mix
End-of-Year Sale
All Channels
Strategic engagement on social media to
drive sales to grow on-line channel
Indirect Channels
Consider destocking Children’s Apparel for
Indirect Channels
Direct Channels
For channels that the company have control
over outbound marketing, create sales event
to drive customer interest
Recommendations Summary
▪ Expand On-line Channel
▪ Discontinue Outlet Channel
▪ Hold Indirect Channel
▪ Divest resources to invest in On-line Channel Growth
▪ Discontinue Children’s Apparel supply for Indrect Channel
▪ End-of-the-Year Sale event to drive engagement from Oct - Dec
Information School, University of Washington
Channel
Product▪ Feature Accessories as Women’s Apparel complementary goods
▪ Increase price on Women’s Apparel
Overall
Thank YouChannel Group 2 in IMT 589A Winter 2015
Information School, University of Washington