VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS AMINISTRATIONS

CUSTOMER RELATIONSHIP MANAGEMENT (704120)

ADVANCED DATA MINING - EXERCISE 1

Lecturer: Dr. Ngô Tấn Vũ Khanh, PhD

Group members:
Phạm Văn Tuấn - 719K0143
Đỗ Nguyễn Phương Linh - 719K0021
Đoàn Hoàn Mỹ - 719K0129
Class: Tuesday Shift 4
Major: Marketing

Ho Chi Minh City, 2022

 Table of Contents
1. Overview ........................................................................................................................ 3
1.1. Introducing datasets ................................................................................................. 3
1.2. New variables ........................................................................................................... 5
2. Analysis ......................................................................................................................... 7
2.1. Sale summary........................................................................................................... 7
2.2. Sales by region ......................................................................................................... 7
2.3. Amount of orders and shipping cost .......................................................................... 9
2.4. Sales by month (Accessories)..................................................................................... 9
2.5. Forecast sale and profit .......................................................................................... 10
2.6. Sales through the origin of products by year ............................................................ 11
2.7. Profits and sales of items through the payment way of different careers ................... 12
2.8. Delivery partner and Ship Mode ............................................................................. 15

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 CHAPTER I: OVERVIEW
1.1. Introducing datasets

Variable name Variable Type Meaning

Row ID Qualitative Order number

Order ID Qualitative Order code

Order Date Qualitative Ordering date

Ship Date Qualitative Delivery date

Ship Mode Qualitative Delivery way:

[1] By sea
[2] railway
[3] delivery by vehicle
[4] Same-day delivery

Customer ID Qualitative Customer's code

Customer Name Qualitative Customer name

Segment Qualitative Customer segment:

[1] Consumer
[2] Corporate
[3] Home Office

Province Qualitative Province

Region Qualitative Area:

[1] The North
[2] Southeast region
[3] Southwestern region

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 [4] Central Region

Channel Code Qualitative Sales Channel:

[1] Agent
[2] Store
[3] Online
[4] TV

Product ID Qualitative Product code

Status Order Qualitative Order status:

[1] Delivery
[2] Invoice
[3] Open Order

Category Qualitative Product Groups:

[1] Electronic goods
[2] Refrigeration goods
[3] Furniture

Sub-Category Qualitative Product Type

Product Name Qualitative Product name

Sales Quantitative Price

Quantity Quantitative Amount

Unit Price Quantitative Unit price

Discount Quantitative Promotion

Profit Quantitative Profit

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Shipping Cost Quantitative Delivery charges

1.2. New variables

We insert 6 new variables into the dataset:

Variable name Variable Type Meaning

Delivery partner Quantitative [1] Vietnam Post

[2] Viettel Post
[3] J&T Express
[4] Giaohangtietkiem
[5] Giaohangnhanh

Payment method Quantitative [1] Cash

[2] Electronic bank transfers
[3] Debit/Credit cards
[4] E-wallet

Gender Quantitative [1] Male

[2] Female

Customer Quantitative [1] Long-time

classification [2] New

Product origin Quantitative [1] Vietnam

[2] Thailand
[3] China
[4]Germany

Jobs Quantitative [1] Student

[2]Teacher
[3]Business

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 [4]Officer
[5]Other

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 CHAPTER 2: ANALYSIS
2.1. Sale summary

Considering the period 2011-2014, sales tended to increase in the third quarter
of the fourth quarter (affected by the year-end shopping season and Tet) with a growth
rate of about 20% compared to the second quarter of the same year, then decreased.
strong in Q1 next year with a decrease of about 40% compared to Q4 of the previous
year. But in general, the level of cumulative growth remains stable.
2.2. Sales by region

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 According to the figure, electrical refrigeration products were mostly bought
in the Southwest and Central of Vietnam, following the North and the Southeast.
Compared to electrical refrigeration, the number of buyers of electronic and furniture
products was bigger. Based on this data, we can put more effort on selling and
promotion products in the Southwestern region and spend less time and small-scale
marketing in the Southeastern area.

For example, here in the North of Vietnam, we can see that Hà Giang was a
huge potential destination for the company to expand and focus while having more
than 170,000 orders sold. This number helped us know which city and how to focus
on promoting brands and products more. For this city, people prefer buying through
offline channels such as stores and agents so in order to increase sales, we can open
more stores and make sure the employees are well-trained to serve customers the best
as possible. Along with this, having enough products displayed also plays an
important role so that customers can have experience and carefully make decisions.

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2.3. Amount of orders and shipping cost

The number of orders came with the following: Southwest, Central, North and
Southeast. In every category, the products sold in Southwest were nearly twice as
much as it was in Southeast. Along with that, the shipping cost of the electrical
refrigeration field took more than 60% of the total delivery fee each year from 2011
to 2015. Electricity was taken up with 18% and Furniture was approximately 22%.
2.4. Sales by month (Accessories)

For accessories belonging to the electromagnetic group, sales growth rate was
good in 2013 and 2014 with a growth rate of about 43% a year from 41,896 million

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VND in 2013 to 59,946 million VND in 2014. Growth rate profit growth during this
period is impressive when compared to sales growth because profit growth is around
62% (1.5 times higher than sales growth) from 9,664 million VND in 2013 to 15,672
million VND in 2014.
2.5. Forecast sale and profit

Two charts forecast the growth rate of revenue and profit in the next 2 years
(2015 - 2016). The chart above represents sales and the chart under represents profit.
Regarding revenue, based on specific data from 2011 to 2014, we can make a
forecast of the growth rate of the next few years, specifically on the chart 2015 and
2016. According to the report, the sales of 2015 will drop sharply in the first quarter
with a decrease of about 65% compared to the fourth quarter of 2014 and remain
stable in the middle months of the year and reach the highest level of 75,000 million
VND in the fourth quarter. In 2016, sales will continue to drop sharply by about 30%
compared to Q4 2015 and reach 61,260 million VND in Q1 and continue to increase
in Q2 and Q4 and reach a peak of 108,000 million VND in Q4.

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 In terms of profit, Profit is expected to increase steadily monthly in the next 2
years, although the increase is not much, it is steady and shows no signs of decreasing,
from 9,375 million VND at the beginning of 2015 to 11,106 million VND around
the end of 2016.
2.6. Sales through the origin of products by year

For longtime customers:

- Products from China have been the most popular item for 4 years with the highest
number in 2014 of 148,087.
- Germany is the 2nd ranked country in terms of popularity with the highest sales in
2013 - 78,720.
- Products from Thailand and Vietnam are items that are not as welcome as the above
countries but are highly competitive compared to each other.
For new customers:
- China is still the most favored country with sales up to 261,076 in 2014, far ahead
of all other countries.
- Although Germany is much worse than the middle, the number of sales is still quite
high compared to the rest of the countries with several 109,669 in 2014.
- Thailand is slightly better than Vietnam, but both have quite low sales.
In general, it can be seen that the company's sales volume is mostly consumed

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by new customers, so the company should focus and spend resources on promoting
the product to more consumers. In addition, it can be noticed that customers tend to
prefer foreign products, so the company can hit these products strongly.
2.7. Profits and sales of items through the payment way of different careers
2.7.1. Electronic products
There are 4 methods for customers to choose in payment and the company's
profits come from 5 different industries:

Payment by electronic bank transfer is the most preferred method. It can be

seen that when customers pay this way, most of them buy products that bring high
profits to the company. 3 groups of potential customers often use this method,
especially customers in the business group, customers in the group of teachers, and
customers in the group of other industries.
Payment by cash and Debit/credit card are also two quite popular methods for
consumers. However, the products paid for by these two methods usually have a low
economic value, about above average. The group of business customers is the most
profitable group and the group of other industries is the lowest. The rest of the
professions provide approximately the same profits.
Payment by E-wallet has the lowest position, products when paid by this

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method also brings profits to the company, but mostly it is quite low. With this
method, the two groups of business and teachers account for a high percentage of
profit, while the group of office workers and students is very low. Especially, the
group of other industries not only did not bring profits but on the contrary, also
suffered losses.
2.7.2. Refrigerated products and Furniture

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 By viewing and analyzing the chart of the above electronic product, we can
summarize as follows:
- Electronic products and refrigeration products bring very high profits, especially
electronic products with a number up to 145,179. As for furniture products, the
revenue was quite low with only a total profit of 18,453. From here we can see that
the company should promote products in the field of electrical appliances and
refrigeration. Reduce spending on furniture or should reconsider the way of
promotion or quality of furniture products.
- Customers are very fond of paying by electronic bank transfer, Debit/Credit cards,
and paying cash, so at our stores and branches, we should create the best conditions
for customers to pay according to their requirements. the way they want and get the
best experience while shopping.
- The company should focus on taking care of the business customer group because
this is the most potential customer group to help the company earn high profíts.

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2.8. Delivery partner and Ship Mode

The company cooperates with 5 major shipping companies in Vietnam,

namely Vietnam Post, Viettel Post, J&T Express, Giaohangtietkiem and
Giaohangnhanh. Delivery cooperation with many companies is to prevent an incident
or change in policy from one company, which will not greatly affect the operation of
the business.
At all delivery companies, the preferred delivery channel is delivery by
motorbike (accounting for about 60%) because of its convenience and speed with low
average cost. The number of deliveries by rail and sea delivery accounts for only 10%
to 20% of the total number of successfully delivered orders. From 2011-2014, the
number of orders increased rapidly year by year, especially in 2012, 2013 and 2015.

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