Data analytics, Modeling and Forecasting
A Data Driven Decision Making
During the course of operation every business generates huge amounts of data. With advancements in data storage, processing and analytical technologies, businesses are being able to implement analytics in a much better way than it was done a decade ago. As an analytics partner, we help businesses manage as well as derive useful business information from their business data.
These business data are collected at various stages of a business value chain. For instance, customer side data may pertain to number & type of products purchased in a given time period, amount spent, age, gender, occupation, geography, season/month and others. Similarly, supply side data may pertain to order size, delivery timeline, quality rating, supplier geography, compliance rating and others.
Practical Business Case on Time Series Forecasting and Marketing Mix Modeling
Client requirement – The client is a United States based OTC drugs manufacturer. One of its products is gummies for hair health and growth. The company was willing to use analytics to fuel growth of its gummies product line. However, it was not sure as to how and from where to start with.
Our solution – To optimize the sales performance, it was crucial to understand the target customers of the company in a better way and to analyze its past generated sales data and marketing spend. Its past five years monthly sales revenue was analyzed and a comparative analysis with the industry growth trend was performed to understand the company’s relative growth and market performance. Seasonal, cyclical and irregular patterns in the sales behavior of the company was assessed and monthly sales forecast was provided.
Moreover, marketing spend across all the marketing channels such as social media, television, print, email marketing and others were analyzed for the five year period and a regression based marketing mix model was derived to establish a relationship between marketing spend and sales revenue of the company. This also helped the company to understand the impact of each of the marketing channels on its sales figure and strategize its future marketing spend.