- This program consists of 3 tasks.
- All files are my personal submission for this program. Not Quantium's model work files.
Python Version: 3.7
Packages: pandas, numpy, sklearn, matplotlib, datetime, scipy, mlxtend
Conduct analysis on client's transaction dataset and identify customer purchasing behaviours to generate insights and provide commercial recommendations.
- Date column was in integer format (Amount of days after December 30th 1899). Changed date column to datetime data type.
- Ensuring all products are Chips. Split and counted frequency of each word in "PROD_NAME" column. Removed all rows containing "salsa" in "PROD_NAME".
- Removed outliers rows in "PROD_QTY" column.
- Value counted each first word in "PROD_NAME" column to extract brand name. Combined brands written in multiple ways. Created new column "Cleaned_Brand_Names".
- Groupby sum TOT_SALES column and identified top 3 highest total sales contributing segments. (Older families-Budget, Young Singles/Couples-Mainstream, Retirees-Mainstream)
- Plot the groupby into stacked bar chart with percentage text on each segment stack.
- Groupby nunique to find number of unique customers in each segment. Found high sales amount by segment "Young Singles/Couples - Mainstream" and "Retirees - Mainstream" are due to their large number of unique customers
- Used p-value calculation and found statistically significant TOT_SALES difference (pval < 5%) between "Mainstream Young Midage" to "Budget and Premium Young Midage" segment.
- Divided groupby sum to groupby nunique to get average amount of chips bought per customer segment. Older and Young Families bought the highest average amount of chips.
- Unstacked the groupby and plotted it by segment:
- Top 3 total sales contributor segment are
- Older families (Budget) $156,864
- Young Singles/Couples (Mainstream) $147,582
- Retirees (Mainstream) $145,169
- Young Singles/Couples (Mainstream) has the highest population, followed by Retirees (Mainstream). Which explains their high total sales.
- Despite Older Families not having the highest population, they have the highest frequency of purchase, which contributes to their high total sales.
- Older Families followed by Young Families has the highest average quantity of chips bought per purchase.
- The Mainstream category of the "Young and Midage Singles/Couples" have the highest spending of chips per purchase. And the difference to the non-Mainstream "Young and Midage Singles/Couples" are statistically significant.
- Chips brand Kettle is dominating every segment as the most purchased brand.
- Observing the 2nd most purchased brand, "Young and Midage Singles/Couples" is the only segment with a different preference (Doritos) as compared to others' (Smiths).
- Most frequent chip size purchased is 175gr followed by the 150gr chip size for all segments.
Extend analysis from Task 1 to help identify benchmark stores to test the impact of the trial store layouts on customer sales.
- Client selected store number 77, 86 and 88 as trial stores. The goal of this task is to select 1 control store for each trial store.
- Control store will be chosen based on combined similarity magnitude of "Monthly overall sales revenue" and "Monthly number of customers" of the store with the trial stores.
- Groupby each store into monthly groups and remove stores that had less than 12 months of transaction data.
- Each groupby store has columns consisting total sales, number of customers, transactions per customer, chips per customer and the average price per unit.
- Made 2 functions that calculates trial store's correlation of chosen metric to other stores (using pandas DataFrame.corrwith method) and another that calculates normalized distance magnitude of chosen metric to other store 1 - ( (value - min_value) / (max_value - min_value) )
- The above 2 funcitons are used and averaged to compute the magnitude of similartiy for the trial stores based on Total_Sales and Number_of_Customers.
- Highest average score (average of Total_Sales and Number_of_Customers magnitude of similarity) for each trial store is chosen as the control store.
- Next phase is to assess trial store's performance compared to control store's scaled performance (scaled control store's performance to match trial store's). Used t-value to check if each trial and control store's percentage difference is statistically significant during the trial phase compared to the percentage difference during pre-trial phase.
Total Sales comparison:
Number of Customers comparison:
- Conclusion: Trial store 77 and 86 had significant increase in total sales and number of customers during trial compared to control store. Trial store 88 had increases as well but insignificant.
Use analytics and insights from Task 1 and 2 to prepare a report for the client, the Category Manager.
- Used Pyramid Principle method to deliver insigths and recommendation to client in Powerpoint.