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Date

The New-Peth Shoes

BUSINESS ANALYSIS REPORT

[AUTOR NAME]

[COMPANY NAME] | [Company address]

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Table of contents
EXECUTIVE SUMMARY.........................................................................................................................................................2
FINANCIAL PERFORMANCE........................................................................................................................................................2
SALES PERFORMANCE...............................................................................................................................................................2
MONTHLY SALES AND PROFIT TRENDS....................................................................................................................................2
CUSTOMER AND REGION PERFORMANCE..................................................................................................................................2
SALES REPRESENTATIVES.........................................................................................................................................................2
PRODUCTS ANALYSIS................................................................................................................................................................2
INTRODUCTION.......................................................................................................................................................................3
BACKGROUND...........................................................................................................................................................................3
COMPANY AND DATASET BACKGROUND:.................................................................................................................................3
PURPOSE AND OBJECTIVES OF THE REPORT:............................................................................................................................3
SCOPE AND METHODOLOGY:....................................................................................................................................................3
ANALYSIS AND FINDINGS....................................................................................................................................................4
DASHBOARD SUMMARY............................................................................................................................................................4
SALES PERFORMANCE...............................................................................................................................................................6
CUSTOMERS AND REGIONS PERFORMANCE............................................................................................................................11
PRODUCTS ANALYSIS..............................................................................................................................................................16
RECOMMENDATIONS..........................................................................................................................................................18
REFERENCE LIST:.................................................................................................................................................................19
APPENDIX................................................................................................................................................................................20

Table of figures
FIGURE 1 KPIS DASHBOARD.........................................................................................................................................................5
FIGURE 2 TOP 10 BEST-SELLING PRODUCTS.................................................................................................................................6
FIGURE 3 SALES DISTRIBUTION BY CATEGORY............................................................................................................................7
FIGURE 4 MONTHLY SALES / PROFIT / PROFIT RATIO TREND.....................................................................................................8
FIGURE 5 SALES BY CATEGORY AND SUB-CATEGORY.................................................................................................................9
FIGURE 6 RELATION BETWEEN PROFIT AND SALES FOR PRODUCTS...........................................................................................10
FIGURE 7 CUSTOMER DISTRIBUTION BY HOUSEHOLD TYPE.......................................................................................................11
FIGURE 8 GEOGRAPHICAL DISTRIBUTION OF CUSTOMERS AND PROFIT RATIO..........................................................................12
FIGURE 9 TOP 10 CITIES BY SALES.............................................................................................................................................14
FIGURE 10 QUANTITY SOLD BY SHIPPING DAYS........................................................................................................................16

Table of Tables
TABLE 1 SALES FOR EACH REGION BY SALES REPRESENTATIVES.............................................................................................13
TABLE 2 CATEGORY AND SUB-CATEGORY METRICS ANALYSIS.................................................................................................15

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Executive summary
Financial Performance
 New-Peth Shoes achieved total sales of £528,576.30, with an average transaction value of £323.68.
 The company earned a total profit of £111,900.15, with an average profit per order of £68.52.
 The profit ratio, at 21.17%, indicates good financial performance relative to sales revenue.

Sales Performance
 The best-selling product is "Novo Smart, Full Size," followed by "Chicko Smart, Compact" and "Novo
Smart, Compact."
 The "Kids Shoe" category leads in sales, followed closely by "Women's Shoe" and "Men's Shoe."

Monthly Sales and Profit Trends

 The profit ratio fluctuates over time, with the highest peak in February 2018 (36.51%).
 Notable sales peaks were observed in December 2017 and August 2020.

Customer and Region Performance

 Most customers belong to the "Family" household type.
 The United Kingdom's regions, especially England, have the highest customer counts.
 Wales demonstrates the highest profit ratio among regions.

Sales Representatives
 Six sales representatives are responsible for different regions.
 Brian Johnson and Nick Hardy achieved the highest sales figures, while Deborah Reid and Wendy Juliana
had the lowest.

Products Analysis
 "Kids Shoe - Lilli Kelly" and "Men's Shoe - Timberland" stand out with the highest total sales and profits
within their respective categories.
 The "Kids Shoe" category shows the highest profit ratio.
 The return rate varies across sub-categories, with "Men's Shoe - Hunter" having the highest return rate.

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Introduction
Background
The aim of this business analysis report is to plunge into the data of New-Peth Shoes Ltd., an SME situated in
Morpeth, Northumberland, and provide thorough insights. As an online retailer of locally produced and imported
branded shoes, New-Peth Shoes has grand growth plans but lacks proficiency in analytics and data-driven
decision making. As a contracted Business Analyst, the goal is to produce a 2000-word management report that
addresses key aspects of the business's performance and provokes strategic recommendations for growth.

Company and Dataset Background:

New-Peth Shoes Ltd. is a small-to-medium-sized enterprise (SME) that specializes in selling shoes through online
channels. The company operates from Morpeth, a town located in Northumberland, England. New-Peth Shoes
offers a range of footwear, including both locally produced shoes and imported branded products. With
aspirations to compete with high street shoe stores, the company acknowledges the significance of data analysis
and insights to make informed business decisions.

Purpose and Objectives of the Report:

The purpose of this report is to leverage analytical tools and skills to provide invaluable insights into the dataset
provided by New-Peth Shoes. By scrutinizing the data, the report aims to identify key performance indicators
(KPIs) that can help evaluate the business's performance. Furthermore, the report will concoct data-driven
business intelligence (BI) insights, visualizations, and analysis to unearth significant elements that can contribute
to the company's growth and prosperity.

Scope and Methodology:

The scope of this report encompasses the analysis of the provided dataset to extract meaningful insights regarding
New-Peth Shoes' business performance. The methodology employed will involve utilizing analytical tools and
techniques taught during the module to explore the data and extract relevant information. The report will focus on
developing a dashboard that provides an overview of business performance and key KPIs. Additionally, it will
involve in-depth analysis and visualization of the data to generate invaluable business insights. The
recommendations provided will be strategically oriented towards New-Peth Shoes' growth objectives, supported
by data analysis.
By adhering to the specified guidelines and focusing on the defined objectives, this report aims to provide New-
Peth Shoes with actionable insights and recommendations that can steer their future success and enable data-
driven decision-making.

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Analysis and Findings
Dashboard summary
Exploration of The New-Peth Shoes Dataset:

 Total Volumes (£): New-Peth Shoes has amassed a whopping £528,576.30 in sales. This figure represents
the combined revenues generated from all orders placed.

 Average Volumes (£): On average, each transaction amounts to £323.68 in sales. This metric offers
insight into the typical value of customer purchases.

 Total Earnings (£): The company has raked in a total profit of £111,900.15. This indicates the financial
gain after subtracting the cost of goods sold and sundry expenses from the sales revenue.

 Average Earnings (£): On average, each order results in a profit of £68.52. This metric facilitates the
assessment of transactional profitability.

 Profit Ratio: The profit ratio is estimated to be 21.17%. It signifies the proportion of profit earned relative
to the sales revenue. A higher profit ratio denotes better financial performance.

 Total Number: The total number of products sold is 6,159. This metric reflects the quantity of products
purchased by customers.

 Average Number: On average, each transaction involves the purchase of 4 units of products. This
information can help identify customer preferences and demand patterns.

 Shipping Count: There are 1,633 instances of shipping-related information recorded. This indicates the
number of orders that have been processed for shipping.

 Return Count: There are 47 instances of returns recorded. This represents the number of orders that were
returned by customers.

 Return Rate: The return rate is calculated to be 2.88%. It signifies the percentage of orders that were
returned. Monitoring the return rate helps identify potential issues with product quality or customer
satisfaction.

 Average Discount: The average discount applied to orders is 6.57%. This metric reveals the level of price
reductions offered to customers.

 Sales Representative Count: There are 6 sales representatives affiliated with New-Peth Shoes. These
individuals play a pivotal role in driving sales and maintaining customer relationships.

 Distinct Customer Count: The dataset contains information on 529 distinct customers. Understanding the
customer base is essential for targeted marketing and customer retention strategies.

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These KPIs offer a comprehensive overview of the company's financial performance, sales effectiveness,
customer behavior, and operational efficiency. Monitoring these metrics will enable data driven decision making
and help track progress toward the company's growth objectives.

Figure 1 KPIs Dashboard

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Sales Performance
Bar Chart: Top 10 Best-Selling Products
Key Findings:

 The best-selling product is "Novo Smart, Full Size" with sales of £16,806.69.
 The second and third best-selling products are "Chicko Smart, Compact" (£7,231.43) and "Novo Smart,
Compact" (£6,743.19) respectively.
 The top-selling products include a mix of different types and sizes of shoes.

Figure 2 Top 10 Best-Selling Products

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Pie Chart: Sales Distribution by Category
Key Findings:

 The category "Kids Shoe" has the highest sales, amounting to £216,748.48, indicating its popularity
among customers.
 The category "Women's Shoe" follows closely with sales of £179,366.79.
 The category "Men's Shoe" has relatively lower sales compared to the other two categories, with a total of
£132,461.03.

Figure 3 Sales Distribution by Category

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Line Charts: Monthly Sales / Profit / Profit Ratio Trend
Key Findings:

 The profit ratio fluctuates over time, ranging from a low of 5.12% in February 2020 to a high of 36.51%
in February 2018.
 Profit shows variation throughout the months, with higher peaks in December 2017 (£4,653.37) and
August 2020 (£5,786.60).
 Sales exhibit a similar pattern to profit, with notable peaks in June 2018 (£16,514.75) and June 2020
(£28,192.95).

Figure 4 Monthly Sales / Profit / Profit Ratio Trend

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Stacked Bar Chart: Sales by Category and Sub-Category
Key Findings:

 Within the "Kids Shoe" category, the sub-categories "Kickers" (£77,649.23) and "Lunar" (£47,051.57)
have the highest sales.
 In the "Men's Shoe" category, "Timberland" stands out with sales of £69,866.85.
 For the "Women's Shoe" category, "Michael Kors" (£60,306.71) and "Timberland" (£47,980.97) have the
highest sales among the sub-categories.

Figure 5 Sales by Category and Sub-Category

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Scatter plot: Relation Between Profit and Sales for Products
some observations:

 There is a wide range of profit ratios and sales values for different products.
 The profit ratios vary from negative values to positive values, indicating both profit and loss.
 Some products have high-profit ratios, such as Chicko Style with Stripes (31.02%) and Chromcraft
Adjustable (49.00%).
 On the other hand, some products have negative profit ratios, implying losses, such as Deflect-O Comfort,
Black (-211.85%) and Chromcraft Bottom Lace (-40.02%).
 There is also a wide range of sales values for different products, ranging from small amounts to larger
figures.
 The scatter plot shows a clear linear relationship between profit and sales. Despite some products with
high sales but low profits and vice versa.

Figure 6 Relation Between Profit and Sales for Products

These findings provide valuable insights into the best-selling products, sales distribution by category, and the
trend of sales, profit, and profit ratio over time. They can help identify areas of success, prioritize product
offerings, and guide strategic decision-making for New-Peth Shoes.

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Customers and Regions Performance
Pie Chart: Customer Distribution by Household Type
This pie chart represents the distribution of customers based on their household type.
Key Findings:

 The majority of customers belong to the "Family" household type, accounting for 50.66% of the total
customer base.

 The second-largest group is "Couples" with a percentage of 30.43%.

 "Singles" make up the smallest portion, comprising 18.90% of the customer distribution.

Figure 7 Customer Distribution by Household Type

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Filled Map: Geographical Distribution of Customers and Profit Ratio
This filled map displays the geographical distribution of customers across different regions, along with the
corresponding profit ratios.
Key Findings:

 The United Kingdom has three regions represented in the data: England, Scotland, and Wales.

 England has the highest count of distinct customers, with 505.0 customers.

 Scotland has 62.0 customers, while Wales has the smallest customer count with 17.0.

 Among the regions, Wales has the highest profit ratio at 31.49%, indicating a higher profitability per
customer.

 Scotland follows with a profit ratio of 26.34%, and England has the lowest profit ratio of 20.59%.

Figure 8 Geographical Distribution of Customers and profit Ratio

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Sales for each Region By Sales Representatives

This data presents the sales figures for different regions attributed to each sales representative.

Key Findings:

 Sales representatives are assigned to specific regions to handle sales in those areas.

 Emily Waterston, Steve Smith, Brian Johnson, Nick Hardy, Deborah Reid, and Wendy Juliana are the
sales representatives mentioned.

 Each representative is responsible for a specific region: Central, East, Midlands, North, South, and West,
respectively.

 Brian Johnson and Nick Hardy have the highest sales figures, with £98,497.13 and £98,891.90,
respectively.

 Deborah Reid and Wendy Juliana have the lowest sales figures, with £13,049.90 and £10,867.73,
respectively.
Table 1 Sales for each Region By Sales Representatives

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Dual Axis Bar Chart: Top 10 Cities by Sales and Profit
This dual-axis bar chart displays the top 10 cities based on their sales and profit figures.
Key Findings:

 London has the highest sales figure, amounting to £80,764.42, making it the top-selling city.

 London also has the highest profit figure of £15,604.82 among the listed cities.

 Edinburgh has the second-highest sales figure (£18,017.74), while Birmingham has the second-highest
profit figure (-£5,961.74 indicates a loss).

 Among the listed cities, London, Leeds, and Edinburgh have the highest sales figures, while London,
Leeds, and Birmingham have the highest profit figures.

 It's worth noting that Birmingham had a negative profit, suggesting a loss despite its relatively high sales
figure.

Figure 9 Top 10 Cities by Sales

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Products Analysis
Category and Sub-Category Metrics analysis
This table provides a detailed analysis of metrics for different categories and sub-categories of products. It
includes total sales, total profit, profit ratio, total quantity, and return rate for each sub-category.
Key Findings:

 Among the "Kids Shoe" sub-categories, "Lilli Kelly" has the highest total sales (£77,649.23) and
"Kickers" has the highest total profit (£16,833.17).

 The "Men's Shoe" sub-category "Timberland" has the highest total sales (£69,866.85) and total profit
(£17,448.78).

 For "Women's Shoe," "Michael Kors" has the highest total sales (£60,306.71) but "Lilli Kelly" has the
highest total profit (£1,514.06).

 "Dr Martens" in the "Men's Shoe" sub-category has a negative profit (-£1,513.53), indicating a loss.

 The "Kids Shoe" sub-category has the highest profit ratio, ranging from 21.38% to 24.60%.

 The return rates for different sub-categories range from 1.22% to 4.65%, with "Men's Shoe - Hunter"
having the highest return rate.
Table 2 Category and Sub-Category Metrics analysis

Bar chart: Quantity Sold by Shipping days

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This bar chart illustrates the quantity of products sold based on different shipping days.
Key Findings:

 The majority of products (4,008) were shipped within 5 days, indicating the most common shipping
duration.

 The shipping duration of 3 days follows with 1,522 products sold.

 1-day shipping had the highest quantity sold (1,005) after the 5-day and 3-day options.

 The least common shipping duration is 0 days, with 327 products sold, indicating a possible instant or
same-day delivery option.

Figure 10 Quantity Sold by Shipping Days

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Recommendations
 Emphasize Best-Selling Products: Our analysis has uncovered some hot-selling products like "Novo
Smart, Full Size" and "Chicko Smart, Compact". New-Peth Shoes must prioritize these products, and
shower them with investments in marketing, production, and inventory management to capitalize on their
success. Besides, pinpointing the factors that contribute to their popularity can guide the development of
future product lines.

 Optimize Sales Distribution by Category: The data has shown that sales in the "Kids Shoe" and "Women's
Shoe" categories are higher compared to the "Men's Shoe" category. New-Peth Shoes should deploy its
resources and marketing efforts towards expanding the "Men's Shoe" category to increase its sales. This
could involve introducing new designs, collaborations, or marketing campaigns targeting the male
demographic.

 Monitor and Improve Profitability: The overall profit ratio stands at 21.17%. However, it is imperative to
continuously monitor and improve profitability. New-Peth Shoes should identify products with low or
negative profit ratios and assess their viability. Pricing, production costs, or marketing strategies can be
adjusted to improve profitability. Meanwhile, replicating the success of high-profit products can further
enhance overall profitability.

 Enhance Customer Retention and Satisfaction: Our analysis has highlighted a return rate of 2.88%,
suggesting a potential area for improvement in customer satisfaction. New-Peth Shoes must focus on
understanding the reasons behind returns and take steps to address them. Quality control measures,
improved product descriptions, and enhanced customer support can be implemented. Building strong
customer relationships and loyalty programs can also help drive repeat purchases and increase customer
lifetime value.

 Geographical Expansion: The analysis has revealed customer distribution across different regions, with
England leading with the highest customer count. New-Peth Shoes can consider expanding its presence in
regions with untapped potential, such as Scotland and Wales. Targeted marketing campaigns, partnerships
with local retailers, or online promotions can increase brand awareness and sales in these regions.

 Sales Representative Performance: The sales figures attributed to different sales representatives have
shown significant variation. New-Peth Shoes should assess the performance of each sales representative
and provide necessary support, training, or incentives to improve their effectiveness. Recognizing and
rewarding high-performing sales representatives can also motivate and drive sales growth.

 Optimize Shipping and Delivery: Analyzing the quantity of products sold based on shipping days can
help identify customer preferences. New-Peth Shoes should optimize its shipping processes to ensure
prompt and reliable delivery, meeting customer expectations. Exploring options for faster shipping,
improved tracking systems, and convenient return procedures can contribute to a positive customer
experience and drive repeat business.

 Data-Driven Decision Making: New-Peth Shoes should continue monitoring key performance indicators
(KPIs) and analyzing data to make informed strategic decisions. Regularly reviewing sales trends,
profitability, customer behavior, and regional performance can provide valuable insights for adjusting
strategies, identifying new opportunities, and mitigating potential risks.

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Reference List:
Johnson, P., & Pyke, J. (2019). Business Analysis for Dummies. John Wiley & Sons.

Kumar, V., & Reinartz, W. (2018). Customer Relationship Management: Concept, Strategy, and Tools. Springer.

Shmueli, G., Patel, N. R., & Bruce, P. C. (2019). Data Mining for Business Analytics: Concepts, Techniques, and Applications in R. John
Wiley & Sons.

Smith, R. (2017). Strategic Planning for Public Relations. Routledge.

Stevenson, W. J., & Hojati, M. (2018). Operations Management. McGraw-Hill Education.

Appendix
Appendix A: Data Prep and Cleaning

1. Raw data files provided by New-Peth Shoes Ltd.

2. Data cleaning steps performed:

 Removal of duplicate records.

 Handling missing values by imputation or exclusion.

 Formatting data types (e.g., converting dates, numerical values).

 Renaming and reorganizing columns for clarity and consistency.

 Filtering irrelevant data and outliers.

 Consolidating and combining data from different sources.

 Standardizing and normalizing variables where necessary.

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