FUNDAMENTALS OF BUSINESS

ANALYTICS
CIA-1: DATA VISUALIZATION, MODELING AND ANALYSIS

SUBMITTED TO:
Dr RAJASHREE KAMATH K

SUBMITTED BY:
ROHIT RAJEEV, MANEESH KRISHNAN, PAVITRA PALAT
RAJESH, CICILY ROSE, NAVIN SAJU, SWAGATA BOSE

REGISTER NUMBER:
2227043, 2227027, 2227035, 2227016, 2227031, 2227052

CLASS:
1-MBA-A
TABLE NO. TABLE TITLE PAGE
NUMBER

1.

INTRODUCTION 3-4

2.

SAMPLE SIZE DETERMINATION 4-5

3.

CORRELATION 5-6

4.

SCATTER PLOT 6-7

5.

RANDOM SAMPLING AND REGRESSION 7-8

6.

BAR GRAPH 8-9

7.

PIE CHART 9-10

8.

PIVOT TABLE AND STACKED COLUMN 10-11

9.

PRESCRIPTIVE ANALYTICAL IMPLICATIONS OF THE ABOVE 12

ANALYSIS

10.

PLAGIARISM REPORT 13
 INDEX

INTRODUCTION

Business analytics is a subset of business intelligence and a data management solution that focuses
on analysing data, turning it into information, spotting trends, predicting outcomes, and ultimately
making better data-driven business decisions.

Discovrer
a business
need

Make a Collect
decision data

Find the
Analyze
best
data
solution

Predict
Outcomes

About database

The database taken for the purpose of analysis is from the FMCG Company called D-Mart.

Attributes are as follows:

1. Names of the products

2. Brand
3. Price
4. Sales
5. Discounted Price
6. Profit
7. Total cost
8. Cost per unit
9. Category
 10. Sub-category
11. Quantity
12. Discount

OBJECTIVES

 Gaining important business insights in order to forecast solutions to business problems

 To write an introduction to basic BA tools.
 Obtaining a business application for descriptive and predictive analysis

IDENTIFICATION OF BUSINESS PROBLEMS

The dataset is taken from the Kaggle website to understand the business context; data is on a
FMCG company called D-Mart. The business problem to be identified is the analysis of sales
data and the profit earned by the company by selling the FMCG goods and understanding the
areas of where the company can improve its profitability while keeping the costs low.

PROBLEM STATEMENT

This dataset would allow us to identify the problem that contributes to the negative profits even
though the sales are high. We are to find the segments of products that contribute to the highest
profit and products that churn in negative profits for the company.

DATA ANALYSIS AND INTERPRETATION

1. SAMPLE SIZE DETERMINATION

Sales   Profit  
       
-
16329.8170 13427.7154
Mean 6 Mean 9
449.696940 562.574232
Standard Error 2 Standard Error 5
Median 10297 Median -12613
Mode 12000 Mode -10395
Standard Deviation 18983.3905 Standard Deviation 23748.3634
 4 1
360369116. 563984764.
Sample Variance 3 Sample Variance 9
24.5357885 12.3116510
Kurtosis 4 Kurtosis 6
3.79426230 1.77755121
Skewness 2 Skewness 2
Range 247521 Range 306672
Minimum 139 Minimum -77592
Maximum 247660 Maximum 229080
Sum 29099734 Sum -23928189
Count 1782 Count 1782
Confidence 881.989198 Confidence 1103.37507
Level(95.0%) 1 Level(95.0%) 7

Sample
  Size (n)  
  541.651  

Interpretation:

With the descriptive statistics, we are trying to identify the sample size of the sales and the profits
contributed from the sales of the said products.

Certain products have a high unit sale but a high negative profit margin, this could be due to the high
inventory that the company warehouse holds which is leading to high inventory costs. Therefore, it
becomes a priority for the company to sell the products by introducing double digit discounts on the
same. Another reason why there is a negative profit values of certain products is that the demand
for the goods and services is very low and the company would want to encourage high demand for
the same by introducing certain strategies which has costed the company a good amount of loss.

In addition to that, there are multiple products sold by the company that have high profit margins.
They do give certain amount of discounts as it is traditionally offered as part of the corporate policy,
although the quantity demanded of the high profit margin products are comparatively lower than
the items with high discount and high losses which indicates that they are successfully able to
reduce their idle inventory which would be good for them, considering the long-term benefits of the
same.

The suggestion to the company would be to do a better market research on the products that have a
high demand and offer the same to the general public in order to reduce the high inventory costs to
achieve high profitability.

2. CORRELATION
 Order Unit
  Sales Profit Discount quantity Price
Sales 1        
0.65968
Profit 7 1      
Discount -0.14407 -0.12685 1    
Order 0.00752 -
quantity -0.00298 7 0.00081363 1  
0.86318 0.70802 0.02587546 -
Unit Price 6 3 5 0.010375056 1

Interpretation –

There is a high correlation between the independent variable (unit price) and the dependent
variable (profits). Any variation in the independent variable would lead to changes in the dependent
variable. There is a negative correlation between the discounts offered and the quantity demanded
for the products as it is completely dependent on the user interests and the discount offered by the
company do not have much of an effect on the quantity demanded for the products unless the
company feels to give the discounts for the purpose of reducing the inventory costs of the products.

3. Scatter Plot

Scatter Plot Diagram

150000

100000

50000

0
0 20000 40000 60000 80000 100000 120000 140000 160000 180000

-50000

-100000

Profit Discount Order quantity Unit Price

 Sales & Profit
150000

100000

50000

0
0 20000 40000 60000 80000 100000 120000 140000 160000 180000

-50000

-100000

Sales & Unit Price

1200

1000

800

600

400

200

0
0 20000 40000 60000 80000 100000 120000 140000 160000 180000

Interpretation-

The above 3 scatter plots are made based on the sales, unit price and profits combined for the first
one, sales and profits for the second one and sales and unit price for the third one. We make the
scatter plots to understand relationship between the independent and the dependent variables and
how they affect the performances.

4. Random Sampling & Regression

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.873727403
R Square 0.763399575
Adjusted R Square 0.7616339
Standard Error 8595.071154
Observations 541

ANOVA
df SS MS F Significance F
Regression 4 1.27762E+11 31940384771 432.355702 3.5413E-166
Residual 536 39597133009 73875248.15
Total 540 1.67359E+11

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 6949.653357 1449.31647 4.795124805 2.10934E-06 4102.616511 9796.690204 4102.616511 9796.690204
Profit 0.013915964 0.022194279 0.627006778 0.530921767 -0.029682472 0.057514399 -0.029682472 0.057514399
Discount -25293.11031 2583.332054 -9.790886259 6.19079E-21 -30367.80703 -20218.41358 -30367.80703 -20218.41358
Order quantity -1.015001607 6.569146781 -0.154510417 0.877265459 -13.9194316 11.88942839 -13.9194316 11.88942839
Unit Price 112.8720727 4.152184689 27.18377942 6.2848E-103 104.7155223 121.0286231 104.7155223 121.0286231

Interpretation-

Regression analysis is a reliable method of identifying which variables have impact on a topic of
interest. The process of performing a regression allows us to confidently determine which factors
matter the most and which factors can be ignored and the magnitude of the influence those factors
can have on each other.

Multiple R- The correlation coefficient is a measure of the strength of a relationship. The value 0.87
indicates that this is a highly positive but moderately strong relationship that is trending towards
strong relationships based on profitability and order quantity as dependent variables and revenues
as an independent variable.

R Square - In a regression model, R-Squared (also known as R2 or the coefficient of determination) is

a statistical metric that quantifies how much of the variance in the dependent variable can be
accounted for by the independent variable. Thus, R-square demonstrates how well the data fits the
regression model. The R squared value is 0.76 in this case, indicating a high correlation and thus a
positive effect.

Adjusted R - R2 and adjusted R2 are never greater than each other. A model with a value of 1
accurately predicts values in the target field. A model with no predictive value has a value that is less
than or equal to 0. In the real world, adjusted R2 falls between these two values. The Adjusted R2
value is 0.76, which is less than one, indicating that this has a very low predictive value.

Intercept - When both x variables are set to zero values, the average score on store scales is
6949.653357. Understanding the direction of movement of the y variable across the line graph as
the x variables move is made easier with the aid of the intercept.

Table interpretation- By analysing the table, we can see that there is merely a moderate correlation.
The proportion for the factors under examination leads to the conclusion that the discounts and
order quantity have little bearing on unit sales and the impact of of the same.

Equation  Y= -1.015x + -25293.11x + 6949.65

Business point of view interpretation of the regression analysis –

As the correlation between the elements considered for the regression analysis is high, we can
conclude that the products with significant levels of discount offered are better performing amongst
the consumers hence it becomes a priority for the company to focus on selling the products that
have a high sales momentum.

5. Bar Graph

Price
250 210 200
200 150
150 120
100 60
50 25 35 30
0

Price
3000 2500
2500
2000
1500
897
1000 685
500 180 260 354 200 169
129
0
ita es ry re
o
ui
ts ilk irs Si
lk ar
nv ag bu O c M cla k St
ur er Ca
d y Bi
s iry
ho i l 5
Bo ev ur Da yM ur
y
y B db vita y ryC i r b
bur c oa Ca
rn ur bu Da Ca
d
d Co ou db ad ry
Ca ry B C a C u
u ry db
db dbu Ca
Ca Ca

Interpretation –

The above bar graphs show the brands sold by the supermarket and the price at which it is offered
to the customers. Here, the highest price of biscuit cookies sold by D-Mart is sunfeast dark fantasy
choco fills and the highest price attached for the chocolate products is Cadbury chocolates. With the
high price band products that the company keeps in their shelves is since they believe they can
attract high demand as the original company behind such products have a high goodwill, consumer
loyalty towards the brand and the consumers believe of them having the highest quality. It also
indicates that the consumers have a high purchasing power, which means that they have a high
earning capacity.

If the above mentioned conditions are apt, then the company can move forward in adding goods of
high value to attract high net worth customers to the supermarket, ensuring higher sales and
profitability.

6. PIE CHART

BISCUIT AND
COOKIES SALES

164273

9530

Britannia Parle Karachi's Sunfeast

Unibic Patanjali Malkist Munchy's
Cookie Man Tosita Orion Good Day Harmony
McVitie's Bellie Lotte Choco Pie Cadbury
Bisky Bites Dukes Pichwick The Belgian Waffle Co
Threptin Nutrivalue

Interpretation –

The above pie chart depicts the number of units sold of biscuits and cookies by the supermarket. Out
the of total biscuits and cookies sold by the supermarket, the highest units are sold of the Parle
brand which accounts to 14% or 164273 units of the products. It concludes that the consumers
prefer the parle products more than the other brands that are been offered by the supermarket in
their shelves. However, for the supermarket to boost the sales of the other products, they need to
offer more benefits in terms of cost reduction which would boost its sales. This would prevent the
company from the possibility of increase in the inventory costs that would hamper its profitability in
the long run.

7. Pivot table and stacked column

 Sum of Sales Column Labels
Row Labels 0-0.1 0.1-0.2 0.2-0.3 0.3-0.4 0.4-0.5 0.5-0.6 Grand Total
Bakery 38098 40911 124523 203532
Beverages 1085966 1670141 450285 103405 226851 3536648
Biscuits & Cookies 77153 286465 254967 277291 14356 235577 1145809
Breakfast Cereals 47480 206348 310158 419556 983542
Dairy 803377 401463 445494 213852 8378 47975 1920539
Grand Total 2013976 2602515 1501815 719071 22734 929959 7790070

100%
90%
80%
70%
0.5-0.6
60%
0.4-0.5
50% 0.3-0.4
40% 0.2-0.3
0.1-0.2
30% 0-0.1
20%
10%
0%
Bakery Beverages Biscuits & Breakfast Dairy
Cookies Cereals

Interpretation-

The above pivot table gives a pictorial representation of the main categories of the products offered
by the supermarket and the range of discounts given by the supermarket. The highest discount on
multiple range of products offered by the supermarket ranges between 20-30% however the highest
discount is offered at the rate of 50-60%.

It can be deduced that the 50-60% discount offered are on the products that the supermarket
desperately wants to be out of its shelf due to the reasons which can range from the diminishing
demand of the product or a very high stock that the warehouse of the supermarket holds. The
average discounts offered on most of the products, as per the corporate policy is between 20-30%,
however there are certain products that have discounts ranging below the standard policy range,
could be due to the stock being in high demand which would prompt the supermarket to not put any
discounts since they anticipate that the products in their shelves would be purchased even when
there are no discounts, or the pricing policy of the brands do not allow the supermarket to pass on
the benefits of high discounts to the consumers.
PRESCRIPTIVE ANALYTICAL IMPLICATIONS OF THE ABOVE
ANALYSIS

 The company needs to adopt certain strategies to resolve the issue of high
inventory costs in order to reduce its negative profit margins earned by
the company.
 The company can strategize a few promotional strategies or come up with
innovative ideas to boost sales and also make certain agreements with the
brands to bring in changes in the pricing policy which would allow the
supermarket to not just pass on the benefits to the consumers but also
allow them to make higher profits on the products that have less
contribution in the overall sales of the particular product segment.
PLAGIARISM REPORT