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Case: 1 Designing an Appropriate Marketing Strategy

Dell Case Team: Predators Arijit Pathak (12125012) Nishant Pathak (12125031). Case: 1 Designing an Appropriate Marketing Strategy. Table 1 Day Wise Revenue Details. Wednesdays & Sundays record minimum Revenue/Visit Number of visit Wednesdays – Average Sundays: Below Average

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Case: 1 Designing an Appropriate Marketing Strategy

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  1. Dell Case Team: Predators Arijit Pathak (12125012) Nishant Pathak (12125031) Case: 1 Designing an Appropriate Marketing Strategy Table 1 Day Wise Revenue Details • Wednesdays & Sundays record minimum Revenue/Visit • Number of visit • Wednesdays – Average Sundays: Below Average • Data analysed on a month-wise basis reflects December having comparatively higher revenues (29030.27 : Revenue/Visit : 51)

  2. Clustering of Data : Frequency of Visits & Contribution in Revenue Table 2 Table 3 • Frequency wise – Moderate, Frequent and High • Revenue/Visit – Low, Moderate & High • But when data is segmented on basis of overall contribution to Revenue and Revenue/Visit, it was observed that people who are contributing moderately in the revenue are actually the customers who spend heavily on per visit basis Table 4

  3. Table 5 Customer Segmentation: 1. Frequency of Visits 2. Revenue/Visit 3. Weekday Revenue / Visit & 4. Weekend Revenue / Visit • Customers can be segmented into 4 clusters: • High Revenue/Visit on weekdays as well as on weekends with less frequency of visits • Fairly High Revenue/Visit on weekdays and moderate Revenue/Visit on weekends with moderate frequency of visits • Moderate Revenue/Visit on weekdays and fairly high Revenue/Visit on weekends with high frequency of visits • Low Revenue/Visit on weekdays as well as on weekends with high frequency of visits

  4. Marketing Strategies • Discount of 2.5% on Wednesdays & Sundays • (as Revenue generated on these days are less) • (The value 2.5% is obtained by synchronizing the Standard Deviation across all the sectors among all the days of the week) • For customers belonging to cluster 1 more focus should be on providing value added services rather than discounts • Free Delivery • Booking over internet • Credit facility up to 3 days • We suggest no other discounts on direct purchase but a concept of accumulating Reward Points which could be redeemed at the end of every quarter for purchase of products worth the value of the accumulated points • Total spend in the quarter • 1500: Accumulated points - 50 • 1750: Accumulated points - 75 • 2000: Accumulated points – 100 • 2250: Accumulated points – 125 • 2500: Accumulated points – 150 • Special offers to be provided in 3rd & 4th week of December • The cluster thus provided needs to be updated on a regular basis

  5. Case 2: How to Improve Sales to Meet Management’s Targets Graph of Sales Volume VS Time Period

  6. Analysis • Above graph reflects Additive Trend and Seasonality in the data (Sharp increase between Jan and March) • Holt Winters’ Additive Model can be fitted Model fit : Good Stationary R2 and R2 values are .730 and .998 respectively Mean Absolute Percentage Error : 0.768%

  7. Graph Showing The Forecast As Well As Trends & Seasonality • Following additional data, if available, would help in better prediction: • Price of the product (Whether it was altered) • Value of offers and discounts offered (if any) • Advertisement Spending • Market Size or Market Share

  8. Marketing Strategies Since a profit of Rs.6 is made on each unit so it could be assumed the soap is targeted towards high-end customers So we suggest marketing strategies to focus more on the quality rather than price or discounts Some of the strategies that could be adopted may be as follows: • Differentiating the product from ordinary soaps, highlighting its unique skin treatment quality (e.g. Dove has positioned itself as a skin moisturizer) • Providing more variants to suit various skin types (Oily/Dry Skin) • Promotion should feature actual users not celebrities, highlighting the benefit of using the soap • Promotion in media including high end magazines & social media • Other segments can be targeted by introducing smaller variants Disclaimer: The data provided with the case was used to analyze both the cases

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