ANNUAL SALES

REPORT
Course: Advanced Business Analytics
Lecturer: Dr. Tuan Truong

PREPARED BY :

Ngo Hieu San (ID: 19010002)

Pham Le Uyen Nhi (ID: 19010079)
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Nguyen Tran Van Anh (ID: 19010008)
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 TABLE OF CONTENT

EXECUTIVE SUMMARY ........................................................................................................... 2

I. INTRODUCTION ................................................................................................................ 4
A. COMPANY INTRODUCTION .......................................................................................... 4
B. REPORT GOALS & OBJECTIVES .................................................................................. 5
II. SALES PERFORMANCE ................................................................................................... 7
A. SALES OVERVIEW......................................................................................................... 7
A.1. Dashboard: Sales overview............................................................................................... 7
A.1.1 Sales Growth & Order Quantity By Month Over Years .................................................... 8
A.1.2 Profit By Month Over Years........................................................................................10
A.1.3 Average Order Value By Month Over Years ..................................................................11
A.1.4 Total Sales By Regions ...............................................................................................12
A.1.5 Product Category By Regions .....................................................................................13
B. PRODUCT ANALYSIS ...................................................................................................15
B.1. Dashboard: Product Analysis ...........................................................................................15
B.1.1 Sales By Bike Types ...................................................................................................16
B.1.2 Bike Sales By Colors...................................................................................................17
B.1.3 Sales and Order Quantity By Product Category .............................................................18
B.1.4 Cross-selling by bike products ....................................................................................19
C. CUSTOMERS ANALYSIS...........................................................................................21
C.1. Dashboard Customer Overview .......................................................................................21
C.1.1 Customer Analysis.....................................................................................................22
C.1.2 Customer Ranking .....................................................................................................23
C.1.3 Customer Retention Rate...........................................................................................25
C.2. Dashboard: Customer Demographics................................................................................27
C.2.1 Sales by Ages and Income ..........................................................................................28
0oC.2.2 Sales by Education.................................................................................................29
C.2.3 Sales by English Occupation .......................................................................................30
C.2.4 Sales by Gender, Marital Status, and Number of Children ..............................................31
C.2.5 Sales by customers’ Commute Distance from their home to workplace ...........................32

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 C.3. Dashboard: Target Market ..............................................................................................34
D. CHANNEL ANALYSIS ................................................................................................36
D.1. Dashboard: Reseller and Internet Channel Analysis ............................................................36
D.1.1 Sales by Channels .....................................................................................................37
D.1.2 Sales by Region by Channels ......................................................................................40
D.1.3 Sales by Product Category by Channels .......................................................................41
D.1.4 Sales by Promotion by Channels .................................................................................42
D.2. Dashboard: Reseller Channel Analysis ..............................................................................44
D.2.1 Top Reseller by Channel ............................................................................................45
D.2.2 Reseller Sales by Business Type ..................................................................................46
D.2.3 Reseller Sales by Year Opened and Number of Employees .............................................48
D.2.4 Reseller Sales by Product Line ....................................................................................49
III. CONCLUSION ...............................................................................................................51
A. KEY FINDINGS AND INSIGHTS ....................................................................................51
B. RECOMMENDATIONS FOR IMPROVING SALES PERFORMANCE ............................54
REFERENCE ............................................................................................................................58

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 EXECUTIVE SUMMARY

This executive summary provides an overview of the annual sales report for Adventureworks
Company. The report covers the sales performance, product performance and customer
demographics analysis of the company in the context of the prevailing market conditions. It
highlights key achievements, trends, and recommendations to guide future sales strategies.

Despite the challenging economic conditions, Adventure Works Cycles showcased resilience and
achieved noteworthy milestones in 2013. Key highlights and achievements from the sales report
include:
● Sales Performance: AdventureWorks Company demonstrated resilience and growth
amidst a challenging market landscape. Despite the slow recovery of developed countries,
the company achieved a significant increase in sales revenue.
● Product Performance: The report reveals that the bicycle category emerged as the top-
performing segment, driving substantial sales growth. Additionally, the Clothing,
Accessories, and Components categories also contributed to overall revenue, showcasing
a diversified product portfolio.
● Customer Demographic Analysis: AdventureWorks Company successfully engaged its
target customers through effective marketing initiatives and superior customer service.
The report identifies customer preferences, including popular product colors and cross-
selling opportunities, which were leveraged to enhance customer satisfaction and boost
sales. It also assesses sales performance across different countries, highlighting the most
lucrative markets. The United States emerged as a key market, with a significant customer
base and high sales volume.

Alongside with that, this annual sales report of AdventuresWorks also gave several key
recommendation bases on the key highlights and achievements:
● Market Expansion: To capitalize on the company's success and sustain growth,
Adventureworks Company should explore opportunities for market expansion. This can
include identifying new geographical regions with untapped potential and devising
strategies to penetrate those markets effectively.
● Customer Retention: Building and nurturing customer relationships is crucial for long-
term success. Adventureworks Company should prioritize customer retention by

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 implementing personalized marketing campaigns, loyalty programs, and exceptional
customer service to foster brand loyalty and repeat business.
● Data-Driven Decision Making: Leveraging advanced analytics and data-driven insights can
provide a competitive edge. Adventureworks Company should invest in robust data
analysis tools and methodologies to gain deeper market intelligence, identify emerging
trends, and make informed sales decisions.

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 I. INTRODUCTION
A. COMPANY INTRODUCTION
Company Name: Adventure Works Cycles
Headquarters: Bothell, Washington
Employee Count: 500 in Bothell (additional employees in regional sales teams)
Manufacturing Plant: Wide World Importers in Mexico
Product Line: Bicycles, Clothing, Accessories, and Components
Market Focus: North America, Europe, and Australia commercial markets
Key Strategies:
● Targeting Best Customers: Adventure Works Cycles aims to focus its sales efforts on its
most valuable customers. By identifying and catering to the needs of these customers,
the company seeks to increase customer satisfaction and loyalty, ultimately expanding its
market share.
● Product Availability through External Website: The company plans to extend its product
availability by utilizing an external website. This online platform will enable customers to
browse and purchase Adventure Works Cycles' products conveniently, potentially
reaching a wider customer base and increasing sales.
● Cost Reduction through Lower Production Costs: Adventure Works Cycles aims to reduce
its cost of sales by exploring ways to lower production costs. This could involve
streamlining manufacturing processes, optimizing supply chain operations, or
implementing cost-effective sourcing strategies. By reducing expenses, the company aims
to improve profitability and competitiveness.

Adventure Works Cycles, a multinational manufacturing company, is primarily involved in the

production and distribution of metal and composite bicycles. The company operates from its
base in Bothell, Washington, where it employs 500 people. However, Adventure Works also has
regional sales teams located throughout North America, Europe, and Australia to cater to the
commercial markets in those regions.

In 2000, Adventure Works Cycles acquired Wide World Importers, a manufacturing plant located
in Mexico City, Mexico. Wide World Importers specializes in the production of critical
subcomponents for Adventure Works Cycles' product line. These subcomponents are shipped to
the Bothell location, where the final assembly of the bicycles takes place. Notably, in 2001, Wide

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World Importers became the exclusive manufacturer and distributor of the touring bicycle
product group for Adventure Works Cycles. This strategic decision allowed the company to
streamline its operations and focus on expanding the market share of touring bicycles.

Adventure Works Cycles produces and distributes four categories of products: bikes, bike
components, accessories, and clothing. The company's commercial market spans across three
continents and includes six countries: North America (United States and Canada), Europe (France,
Germany, and the United Kingdom), and Asia (Australia).

Adventure Works Cycles utilizes two main sales channels to reach its customers: online sales and
wholesalers. By leveraging online sales, the company aims to extend its product availability by
providing customers with the convenience of purchasing their products through an external
website. This approach allows Adventure Works to tap into a broader customer base and increase
sales. Furthermore, the company seeks to reduce the cost of sales by implementing measures to
lower production costs. This could involve streamlining manufacturing processes, optimizing
supply chain operations, or exploring cost-effective sourcing strategies (Jeff, 2015).

Overall, Adventure Works Cycles is focused on strengthening its position in the market by
targeting its best customers, expanding product availability through online sales, and improving
cost efficiency in its manufacturing and distribution processes.

B. REPORT GOALS & OBJECTIVES

The goal of the AdventureWorks sales report is to evaluate the company's sales performance
during the period of slow economic recovery in 2013. This involves analyzing revenue, sales
trends, and market share to assess the overall effectiveness of the company's sales efforts. Also,
identifying potential areas for growth within the bicycles and clothing, accessories, and
components segments is a vital goal of this report. This includes analyzing customer segments,
market trends, and the competitive landscape to uncover untapped markets, new product
opportunities, and strategic partnerships.

The report, firstly, is to analyze sales data and identify key trends, such as changes in customer
preferences, buying behavior, and market demand. This helps the company understand the
factors influencing sales performance and adjust strategies accordingly.

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Secondly, it assesses the performance of different product categories within the relevant
segments of bicycles and clothing, accessories, and components. This includes identifying the
top-selling products, analyzing their contribution to overall sales, and evaluating the potential for
product diversification or improvement.

Thirdly, it measures customer satisfaction and loyalty through surveys, feedback, and other
metrics. This helps the company understand the level of customer satisfaction, identify areas for
improvement, and strengthen customer relationships.

Furthermore, the report evaluates the effectiveness of different sales channels, such as direct
sales, e-commerce, and partnerships. This includes analyzing the sales performance and cost-
effectiveness of each channel to optimize resource allocation and improve sales efficiency.

Lastly is to provide actionable recommendations for enhancing the company's sales strategy. This
includes suggesting potential marketing campaigns, pricing strategies, customer retention
initiatives, and market expansion plans to drive sales growth and gain a competitive advantage.

By achieving these goals and objectives, the AdventureWorks yearly sales report aims to provide
a comprehensive overview of the company's sales performance, identify growth opportunities,
and provide actionable recommendations to drive sales and navigate the challenges of the slow
recovery economy in 2013.

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 II. SALES PERFORMANCE
A. SALES OVERVIEW
A.1. Dashboard: Sales overview

The Sales Overview dashboard provides a detailed analysis of key sales metrics for the year 2013.
This dashboard encompasses critical information such as total sales, profit, sales volume, and
profit margin. Additionally, it offers insights into regional sales performance, sales by category in
each region, and key performance indicators such as average order value, sales growth, and sales
volume trends over time.

In 2013, the company achieved a total sales figure of $49.93 million, indicating a substantial
revenue generated throughout the year. With a profit of $6.27 million, the company was able to
effectively manage the costs and expenses to ensure a reasonable return on the investments.
The sales volume of 23,000 units reflects the number of products sold during this period,

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illustrating the level of market demand for the offerings. Furthermore, the profit margin stood at
12%, representing a measure of profitability relative to the sales. These figures provide a realistic
overview of the sales performance in 2013 and serve as a benchmark for evaluating the business
operations and future growth strategies.

A.1.1 Sales Growth & Order Quantity By Month Over Years

The sales growth from 2011 to 2013 demonstrated the evolving performance of the company
over the analyzed period. Upon examining the monthly sales data, several notable trends and
insights emerged, further reinforcing the relationship between sales and order quantity.

From January 2011 to December 2013, the company faced significant fluctuations in sales and
order quantity. The period from 2011 to the end of 2012 was particularly volatile, with noticeable
variations month by month. This was a challenging time as the company was recovering from the
global economic recession in 2008, resulting in a volatile and unstable business environment.
However, 2012 still showed a positive trend compared to 2013, with a difference of 34.7%.
Despite these ups and downs, the year 2013 saw consistent monthly sales and order quantity
figures, reflecting the gradual recovery of the economy with a growth rate of approximately 47%.

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Significant milestones were achieved in May 2011 and October 2013, indicating higher demand
during the summer when customers are more likely to purchase outdoor-related items such as
bikes or sports equipment (Devon Air Ambulance, 2018). Furthermore, the influence of holiday
seasons on sales cannot be ignored. December is traditionally associated with increased
consumer spending, particularly during festive occasions like Christmas. This is evident from the
peak in sales and order quantity recorded in December 2011 and December 2012. This also
proves successful strategies and effective customer acquisition efforts during those specific
months. These milestones serve as indicators of successful customer acquisition initiatives and
effective strategies implemented during those periods.

However, the sales data for December 2013 reveals an unexpected decline in revenue,
contradicting the typical trend of increased sales during the holiday season. This anomaly raises
concerns and prompts further analysis. One possible explanation for this discrepancy could be
the intensified competition from rival companies during the peak holiday season. It is plausible
that the company struggled to effectively compete with competitors in marketing campaigns or
promotions, leading to a decline in sales for that month.

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 A.1.2 Profit By Month Over Years

The trend of profit by months over the years exhibits fluctuations and varying levels of
profitability. In November 2011, there was a significant dip in profit with -$512.8K, indicating a
challenging period for the company. Similarly, in November 2012, the profit reached $62.8K,
marking a notable peak during that year. These peaks and dips in profitability align with the
trends observed in the sales chart above, reflecting the impact of sales performance on overall
profitability.

Additionally, the trend shows a generally positive trajectory in 2013, with increasing profits
throughout the year. Notably, December 2013 stood out as a highly profitable month with a profit
of $579.4K, indicating strong sales and successful financial performance.

It is worth noting that the trend of profit aligns with the sales chart, suggesting that the
company's financial performance is closely tied to its sales performance. Fluctuations in sales,
particularly during peak months, can have a direct impact on profitability.

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 A.1.3 Average Order Value By Month Over Years

The average order value by month over the years provides insights into customer purchasing
power and trends. The data shows that the average order values varied across different months,
ranging from $339 to $3,238. In 2011, the average order values fluctuated between $1,574 and
$3,238, indicating varying customer spending patterns. In 2012, there was a slight decrease, with
average order values ranging from $1,232 to $1,481. However, in 2013, there was a significant
decline, with average order values reaching as low as $339.

This decrease can be attributed, in part, to the impact of the economic recession, as customers
were more cautious about spending excessively on a single order (U.S. Bureau of Labor Statistics,
2014). Despite the overall increase in total sales and order volume, customers' preference for
smaller, more conservative purchases during the recessionary period led to a decrease in the
average order value. This highlights the need for businesses to adapt their marketing strategies
and offers to align with customers' changing spending behaviors during economic downturns.

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 A.1.4 Total Sales By Regions

The total sales by region in 2013 highlight the performance and market presence of the company
products in different geographical areas. The United States emerged as the leading region,
demonstrating a strong foothold and high demand in the domestic market with sales of
approximately $5.67B. Canada followed closely behind with $1.19B in sales, indicating successful
expansion and customer acceptance in the Canadian market. Australia also showcases promising
growth, with sales exceeding $430M, signaling potential opportunities for further market
penetration.

One of the key reasons for Canada ranking second after the United States in terms of sales is the
shared similarities between the two countries (Basil Waugh, 2011). Canada, being a neighboring
country to the United States, shares a similar taste and lifestyle with its American counterparts.
This similarity in preferences and consumer behavior makes it easier for the company to expand
and cater to the Canadian market. Additionally, the cultural and economic ties between the
United States and Canada contribute to the success of the company in the Canadian market. The
close proximity and strong trade relationships allow for smoother business operations and easier
access to resources and distribution channels. This facilitates the company's ability to meet the
demands of Canadian consumers and establish a strong presence in the market.

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 A.1.5 Product Category By Regions

The sales data across different countries and product categories in 2013 provides valuable
insights into consumer preferences and market trends, complementing the sales data by regions
discussed earlier. This chart focuses on the performance of various product categories across
countries.

Bikes emerge as the top-performing category, commanding substantial sales figures across all
countries. The United States leads with $20.7 million in bike sales, followed by Australia at $5.4
million and the United Kingdom at $4.2 million. These numbers highlight the strong demand for
bikes as a popular mode of transportation and recreational activity.

Components, including bike parts and accessories, also demonstrate considerable revenue
generation. The United States dominates this category with sales amounting to $2.99 million,
followed by Canada and France. These figures indicate a thriving market for bike enthusiasts who
seek to customize and enhance their bikes with specialized components.

Clothing sales contribute significantly to the overall revenue. The United States takes the lead in
this category, followed by Canada and France. This emphasizes the importance of comfort, style,
and safety in biking activities, driving the demand for specialized clothing items.

Despite having lower sales figures compared to other categories, accessories still hold
significance in the market. In the case of accessory sales, Australia leads with $156,710, closely
followed by Canada with $172,810. It is important to note that the relatively lower sales volumes
can be attributed to the fact that accessories generally have lower selling prices compared to
bikes, components, and clothing. Customers may prioritize their spending on essential items such
as bikes and components, which tend to have higher price points, leading to comparatively lower
sales volumes for accessories. Nonetheless, accessories continue to cater to the specific needs

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and preferences of customers, providing additional options and customization possibilities for
biking enthusiasts.

Overall, the sales data by product category sheds light on the preferences and purchasing
patterns of customers across different countries. It highlights the strong demand for bikes, the
importance of components and clothing in enhancing the biking experience, and the value of
accessories despite their lower sales volumes.

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 B. PRODUCT ANALYSIS
B.1. Dashboard: Product Analysis

The Sales of Product Dashboard for 2013 provides a concise and comprehensive overview of key
sales metrics, including sales by bike type, top products, color, and category by region. Its purpose
is to offer stakeholders a clear and accessible visual representation of sales data, facilitating quick
analysis of product performance, trend identification, and data-driven decision-making. By
consolidating critical sales information, the dashboard enables users to gain actionable insights
into market demand, customer preferences, and regional sales patterns.

The sales analysis also revealed that AdventureWorks offers products in four main categories,
which exhibit a high degree of variation. Among these categories, bikes emerged as the dominant
category, generating the majority of sales. The top-selling product, Mountain-200 Black, 46, was
a standout performer, particularly in the United States. With sales reaching $1.37M, it captured

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a significant share of the market. This exceptional sales performance translated into a profit of
626 thousand, showcasing the product's profitability and success.

After calculating the data, it became evident that the top 20 products within the company's
offerings accounted for 62% of the total sales in 2013. This highlights the significance of these
products in driving revenue and underscores their popularity among customers. Furthermore,
the top 20 products exhibited a robust profit margin of 30.87%, indicating their profitability and
successful cost management. This suggests that effective pricing strategies were implemented,
allowing the company to optimize revenue generation while controlling expenses. Understanding
the performance of these top products enables AdventureWorks to prioritize their marketing
efforts, further enhance their market presence, and maximize profitability.

B.1.1 Sales By Bike Types

The chart illustrated the distribution of
bike sales by type, revealing interesting
trends in consumer preferences. Road
bikes led the pack with 34% of total sales,
closely followed by mountain bikes at
33%. This indicated a strong demand for
both versatile off-road bikes and sleek,
high-performance road bikes. Touring
bikes made up 32% of the sales,
representing a significant portion of the
market. The balanced distribution
among these three bike types suggested
a diverse customer base with varying
cycling preferences and needs.

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 B.1.2 Bike Sales By Colors
After analyzing the sales by bike types,
the report intends to conduct further
research on product attributes.
Therefore, the sales data by colors has
been conducted. Yellow emerged as the
leading color with sales totaling $15
million, closely followed by black with
sales of $14.5 million. The popularity of
these colors indicated a strong consumer
demand for products in these shades.
Blue and silver colors also contributed
significantly, with sales figures reaching $9 million and $8.9 million, respectively. Red and white
colors had moderate sales values, while silver/black, and multi-colored products accounted for
smaller sales volumes. The analysis of sales by color allowed businesses to understand color
trends and tailor their product offerings accordingly.

One possible reason for the preference for yellow and black bikes is their visibility and safety
features. Yellow is a highly visible color, which can enhance the safety of cyclists, particularly in
low-light conditions. Customers may choose yellow bikes for the increased visibility they provide
on the road. Similarly, black bikes can also be visually striking and stand out (AMC Staff, 2010).
These color choices may be influenced by customers' desire for enhanced safety during their
cycling experiences.

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 B.1.3 Sales and Order Quantity By Product Category

The chart presents a comparison between the total sales and order quantities for each product
category in the year 2013, providing a clear distinction in sales performance among different
products.

The remarkable total sales of $42.3M for bikes underscore a strong demand in this product
category. However, an intriguing finding is that the order quantity for accessories exceeded that
of bikes, despite their lower selling price, with 49,725 units sold. This can be attributed to the
higher price of bikes and customers' inclination to purchase accessories as complementary items
when buying a bike. Despite bikes' higher total sales, the larger quantity of accessories sold
highlights customers' preference for purchasing these items.

Furthermore, despite having lower sales amounts, the clothing and components categories
showcased significantly high order quantities. The higher order quantities suggest that these
products fulfill essential customer preferences. Understanding this trend enables companies to
recognize the value and demand for these products.

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 B.1.4 Cross-selling by bike products

To further explore the significant gaps between sales amount and order quantity, an investigation
was conducted to analyze cross-selling between the three bike types and other products. The
analysis revealed that the top 5 frequently ordered products alongside each bike type
predominantly consisted of cages, with over 900 order quantities for each bike type. Water
bottles also featured prominently, ranging from 500 to over 700 units for each bike type.
Additionally, accessories such as caps, helmets, and mountain bike fender sets were among the
top 5 ordered products. The inclusion of specific mountain bike accessories emphasizes the
importance of catering to the unique needs of different bike types. These findings reinforce the
significance of implementing cross-selling strategies that emphasize these popular accessories,
enabling businesses to capitalize on customer preferences and enhance overall sales
performance.

This data further highlights the significance of accessories in the overall sales performance. While
the total sales for bikes were substantial, it is evident that customers recognize the value and
importance of purchasing accessories to complement their biking needs. These findings
emphasize the importance of understanding the market dynamics and consumer behavior within
each product category. By recognizing the cross-selling patterns and the complementary nature

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between bikes and accessories, it would be an opportunity to optimize their marketing strategies
and product offerings to cater to the specific needs and preferences of their customers.

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 C. CUSTOMERS ANALYSIS
C.1. Dashboard Customer Overview

The Customer Overview dashboard provides a comprehensive analysis of AdventureWorks

Company's customer quantity, highlighting customer analysis in sales amount and profit for six
countries. This section encompasses customer analysis of the sales amount and profit of six
countries and a ranking of the company’s top 10 customers’ profits.

AdventureWorks Company boasted a substantial customer base in 2013, with a total of 18,484
customers. Understanding the composition and growth of the customer base is pivotal for
businesses aiming to make informed decisions and design tailored marketing campaigns.
However, the report identifies an influx of new customers during that year, with 12,523
individuals choosing Adventureworks as their preferred provider. This influx of new customers
demonstrates the company's effective marketing strategies and ability to expand its customer
reach, but the company did not launch a good strategy to retain its old and loyal customers,
which led to the disparity in the total number of customers and new customers in 2013.

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 C.1.1 Customer Analysis

The Customer Analysis Chart provides a comprehensive overview of customer-related metrics in

six key countries: the United States, Australia, Canada, France, Germany, and the United
Kingdom. By analyzing customer counts, total sales amount, total sales quantity, sales per
customer, total profit, and profit ratio, the company can gain key points into the performance
and profitability of the business in these markets.

When examining the customer count, sales per customer, and sales quantity, interesting patterns
are observed within AdventureWorks' data. In terms of customer count, the United States stands
out with the highest number of customers, reaching a substantial total of 7,819. On the other
hand, while the customer count is high, the sales per customer in the United States were
relatively low, averaging around $1.2K per customer.

Although the United States boasted the largest customer count, it had relatively low sales per
customer due to the lower order value. This suggests that, on average, customers in the United
States made smaller purchases. In contrast, other markets displayed a reverse trend, with smaller
customer counts but higher sales per customer.

Understanding these trends can help AdventureWorks refine its marketing strategies and
product offerings for different markets. In the United States, the company may consider
initiatives to increase the average order value by promoting higher-priced products or
implementing upselling and cross-selling techniques. In other markets with higher sales per
customer, AdventureWorks can further cater to the preferences and needs of these customers
by expanding the range of premium offerings or exploring ways to enhance customer loyalty
(Sophia 2022).

Moving on to sales quantity, it finds that the highest sales quantity occurred in the United States
as well, further highlighting the company's strong presence in this market. Despite the lower sales

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per customer, the sheer number of customers and sales quantity in the United States
demonstrated AdventureWorks' ability to attract a large customer base and generate significant
sales volume.

About total sales amount and relevant profit data, the United States stood out with the highest
total sales of 9.4M dollars, indicating its strong market presence and substantial revenue stream
for the company. Australia, the United Kingdom, and Germany also demonstrated favorable sales
figures, reflecting positive customer reception. However, Canada showed a lower sales
performance. In terms of profitability, the United States led with a total profit of 3.9M dollars,
showcasing its exceptional returns on investment. Canada, while having a relatively lower profit
figure, still represented a viable market presence. By leveraging high-profit markets,
AdventureWorks can drive growth and maximize profitability globally.

C.1.2 Customer Ranking

In this customer ranking chart, their profitable partnerships with AdventureWorks played a
crucial role in driving the company's growth and financial performance. One such notable

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customer was Jordan Turner, who stood out with an impressive profit ratio of 41.68%. Jordan's
consistent ability to generate substantial profits for AdventureWorks underscored its value and
the strength of its partnership with the company. Another remarkable customer, Willie Xu,
boasted an outstanding profit ratio of 42.27%, demonstrating their exceptional profitability and
their instrumental contribution to AdventureWorks' success.

In addition to Jordan and Willie, Nichole Nara occupied a prominent position among
AdventureWorks' top customers with a solid profit ratio of 39.49%. Nichole's consistent
profitability highlighted their loyalty and unwavering commitment to AdventureWorks' products
and services. Other standout customers, including Kaitlyn Henderson, Margaret He, Randall
Dominguez, Adriana Gonzalez, Rosa Hu, Brandi Gill, and Brad She, all contributed significantly to
AdventureWorks' profitability and formed enduring partnerships with the company. These
exceptional customers, while representing a fraction of AdventureWorks' customer base,
collectively accounted for a substantial portion of the company's total sales. Their continued
support and commitment to AdventureWorks translated into significant revenue generation,
underscoring their importance as key contributors to the company's financial success.

Moreover, it is worth noting that beyond the top 10 customers, the top 30 customers across
AdventureWorks consistently achieved sales figures exceeding 10K dollars. This remarkable
statistic further emphasized the significant role that these key accounts played in driving the
company's revenue and overall profitability.

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 C.1.3 Customer Retention Rate

This column chart provides insights into customer retention for 2013, emphasizing the
importance of retaining loyal customers for AdventureWorks. By analyzing the general Customer
Retention Rate (CRR) and the CRR of the top 10 customers, the company can enhance its
understanding of customer loyalty and identify strategies to improve retention. Retaining loyal
customers is vital for consistent revenue, long-term relationships, and a strong brand reputation
(Pradeep, 2022). Let's focus on the top two customers who have demonstrated exceptional
loyalty and made significant contributions to AdventureWorks' success.

Maurice Shan and Janet Munoz stand out as the top two customers with exceptional customer
retention rates (CRR) in AdventureWorks. Maurice Shan leads the way with a remarkable CRR of
530.017, demonstrating unwavering loyalty and commitment. Their sales amount experienced
substantial growth, increasing from 2K dollars in 2012 to an impressive 10K dollars in 2013. Janet
Munoz secures the second position with an impressive CRR of 5K dollars in 2012 and sales
amount of 10.4K dollars in 2013, reflecting her loyalty and satisfaction.

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These two customers exemplify strong customer loyalty and satisfaction, driving significant sales
growth for AdventureWorks. It is essential for the company to nurture and strengthen these
relationships and consider offering special incentives to enhance customer retention.
Additionally, AdventureWorks could analyze the average customer retention rate in the bike
industry to benchmark its performance and identify areas for improvement.

Among the top 10 customers, including Lacey Zheng, Jordan Turner, Larry Munoz, Ariana Gray,
Marco Lopez, Katrina Tang, Frank Vazquez, and Alicia Shen, their customer retention rates and
sales amounts also highlight their loyalty and engagement with AdventureWorks. These
customers play a crucial role in driving sales and fostering a strong partnership with the company.
AdventureWorks should continue to provide excellent service, personalized offers, and
incentives to further increase customer retention percentages and reinforce its position in the
market.

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 C.2. Dashboard: Customer Demographics

The objective of the Customer Demographics Dashboard is to analyze customer demographics,

including income, age, education, occupation, gender, marital status, and number of children, in
order to identify common characteristics and preferences among different customer segments.
By understanding the relationships between these demographic factors and sales performance,
the company can tailor its marketing strategies, product offerings, and customer experiences to
better meet the needs and preferences of its diverse customer base. This comprehensive view of
customer demographics allows the company to make informed business decisions and optimize
its approach to target specific customer segments.

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 C.2.1 Sales by Ages and Income

This section provided a breakdown of sales based on income ranges and age groups. It was found
that customers within different age ranges displayed distinct purchasing patterns, influenced by
their yearly income. It was as if the combination of age and income formed a unique tapestry
that determined their shopping behaviors (Dan, 2018). By understanding the purchasing behavior
of customers across different income levels and age ranges,the company could identify target
segments for specific product lines, promotions, or pricing strategies.

Among different age ranges, customers with higher yearly incomes consistently exhibit robust
purchasing power, driving significant sales for AdventureWorks. Notably, the age range of 35-44
stands out as a prime earning period. Within this range, individuals with incomes exceeding
120,000 to 150,000 and beyond demonstrate a strong willingness to invest in premium offerings,
resulting in substantial contributions to the company's revenue.

On the other end of the spectrum, customers with lower income levels generally contribute less
to total sales. For instance, within the age range of 45-54, individuals with incomes ranging from
30,000 to 60,000 are the lowest contributors. Their spending behavior may be more
conservative, leading to lower overall sales figures.

By focusing on the highest and lowest sales across income ranges and age groups, the company
gains valuable insights into the customer segments with the greatest purchasing power and those
that require targeted strategies to drive sales. Understanding these extremes allows
AdventureWorks to optimize its marketing efforts, tailor its product offerings, and implement
pricing strategies that effectively cater to the specific needs and preferences of each customer
segment.

28
 0oC.2.2 Sales by Education

This section of the analysis delves into the relationship between customers' education levels and
their purchasing behavior. By understanding how education influences consumer preferences
and decision-making, the company can tailor its marketing strategies to effectively engage
customers from diverse educational backgrounds.

At the pinnacle of the education hierarchy stood the Bachelors, the noble scholars adorned with
knowledge and expertise. These customers emerged as the highest contributors to the
company's total sales, with an impressive revenue of more than $5.5M. Their extensive
educational journey had endowed them with a deep understanding of quality and value, leading
them to invest in AdventureWorks' offerings.

Descending down the educational ladder, the team encountered the realm of Partial College
education. Customers in this category also exhibited a strong affinity for AdventureWorks'
products, contributing a substantial 4.2M dollars to the total sales.

In the realm of Graduate Degree holders, a sense of intellectual prowess is intertwined with a
discerning eye for quality. These customers, armed with advanced knowledge and specialized
skills, propelled AdventureWorks' total sales to an impressive 3M dollars. Their pursuit of
excellence and their desire for cutting-edge solutions made them enthusiastic patrons of the
company.

29
On the other hand, customers with high school and partial high school education showcased
practicality, reliability, and a desire for products that enhanced their daily lives. Their loyalty
stemmed from the company's ability to meet their needs with accessible and dependable offers.

C.2.3 Sales by English Occupation

The pie chart above illustrates
the total sales amount grouped
by the English occupation of
AdventuresWorks’ customers.
Understanding the preferences
and buying patterns associated
with specific occupations can
guide the marketing efforts and help create tailored campaigns for different professional
segments.

At the zenith of the education hierarchy stood the professionals, esteemed individuals who had
honed their skills and knowledge through years of study and practice. These customers emerged
as the highest contributors to the company's total sales, boasting an impressive revenue of 5.8M
dollars. Their extensive educational background equipped them with the expertise and refined
taste to seek out the finest products and services.

Skilled Manual and Management positions of customers in total, with their hands-on expertise
and practical knowledge, contributed a substantial amount of 3,4M dollars and 3.2M dollars to
the total sales, respectively. Their proficiency in their respective fields and the value they placed
on quality and functionality made them loyal patrons of AdventureWorks.

Indeed, customers with higher education levels, such as those in Professional and Management
occupations, often prioritize quality over price when making purchasing decisions. These
individuals, who hold esteemed positions in society, value expertise and innovation, making them
more inclined to choose AdventureWorks' products, even if they come at a higher price point.
Additionally, their higher incomes enable them to afford premium offerings, further solidifying
their potential as valuable customers for the company.

30
On the other hand, customers in manual or clerical occupations, who may have lower education
levels and potentially lower incomes, might be more price-sensitive when considering their
purchasing options. While they still appreciate quality, their budget constraints and different
priorities may lead them to opt for more affordable alternatives.

Understanding these distinctions in purchasing behavior based on education and occupation can
guide the company in developing targeted marketing strategies. By highlighting the superior
quality, innovation, and value proposition of AdventureWorks' products, the company can
effectively capture the attention and loyalty of customers across different educational
backgrounds and occupational statuses.

C.2.4 Sales by Gender, Marital Status, and Number of Children

This section examines sales variations based on gender, marital status, and the number of
children. By understanding the purchasing behaviors and needs of different customer segments,
the company can develop targeted marketing campaigns and personalized experiences.

At the apex of the analysis, single people without children exhibited the greatest overall sales.
These clients, mostly women, generated an astounding 2.7 million dollars in revenue. Their ability
to invest in AdventureWorks' goods and services was made possible by their concentration on
pleasures and discretionary spending, free from the constraints of motherhood.

31
Following closely behind were married individuals with one child, both male and female. This
segment demonstrated a strong affinity for AdventureWorks' offerings, contributing a significant
total sales figure of 2.25M dollars. Their purchasing decisions were likely influenced by the desire
to provide for their growing family's needs, combining practicality and quality.

C.2.5 Sales by customers’ Commute Distance from their home to workplace

In 2013, the AdventureworksDW2019 company conducted a customer analysis based on the

commute distance between their homes and workplaces. Among the customers, the majority,
with a count of 6,310, had a commute distance of 0-1 miles. These customers accounted for the
highest customer count, indicating that a significant portion of the customer base lived in close
proximity to their workplace. The total sales generated by this group reached an impressive
11.2M dollars. This suggests that customers who had a short commute were more likely to
purchase more products from the company frequently, resulting in higher sales.

Customers with a commute distance of 10+ miles (the furthest commute distance) represented
the lowest count among all the categories, with only 2,494 individuals. However, the total sales
from this group reached 3.7M dollars, indicating a significant contribution to the company's
revenue. It is possible that customers with longer commutes had specific preferences or
requirements that were met by the company's products or services, prompting them to make
larger purchases.

32
The analysis of commute distance in relation to customer counts and sales figures reveals an
interesting trend. Customers who live in close proximity to the company's locations, with
commute distances of 0-1 miles and 1-2 miles, exhibited higher customer counts and generated
substantial sales. This could be attributed to the convenience and accessibility of the company's
products and services, as customers prefer utilizing bicycles for their daily commute. Recognizing
this relationship allows the company to tailor its marketing efforts and product offerings to
effectively capture and serve this target market. By catering to the needs and preferences of
customers with short commuting distances, the company can capitalize on this market segment
and further drive sales growth. This insight highlights the significance of location proximity in
attracting and retaining customers, emphasizing the importance of strategic site selection and
optimizing the company's physical presence to maximize sales potential.

33
 C.3. Dashboard: Target Market

In 2013, AdventureWorks conducted a comprehensive analysis of its target market, this

information provides valuable insights into the geographic distribution of the target market and
its potential impact on sales. Let's dive into the data and explore the key findings.

The United States emerged as the primary target market for AdventureWorks, with a significant
customer base of 42.3% residing within its borders. This indicates a strong presence and market
share in the United States, which could be attributed to several factors. The United States has a
large population and a robust consumer market, offering ample opportunities for sales growth.
AdventureWorks' marketing and distribution strategies may have been tailored to effectively
target and attract customers in the United States, contributing to their higher representation in
the customer base.

34
The high concentration of customers in the United States also had a direct impact on sales. With
more than one-third of total sales originating from the United States, this highlights the
significance of this market segment in driving revenue and overall business performance.
AdventureWorks' sales and marketing efforts in the United States likely focused on leveraging
market potential and customer demand to maximize sales opportunities.

When examining the demographic profile of the target market, customers aged 45-64
constituted the majority, accounting for 54% of the customer base. This suggests that
AdventureWorks has successfully captured the attention and loyalty of middle-aged and older
customers. The reasons behind this could be attributed to the popularity of AdventureWorks'
products among this age group, effective marketing campaigns targeting their needs and
preferences, or a strong reputation and brand loyalty among this demographic.

In terms of income levels, a significant proportion of AdventureWorks' target market,

approximately 71% of customers, earned more than 30K dollars This indicates that
AdventureWorks has positioned itself as a brand catering to customers with moderate to high
income levels. The higher purchasing power of this segment allows them to invest in
AdventureWorks' products, contributing to overall sales revenue. AdventureWorks may have
focused its marketing efforts on segments with higher income levels, offering premium products
and targeting customers who can afford them.

Furthermore, AdventureWorks' target market in 2013 showed an equal representation of

genders, indicating a balanced appeal of the brand and its products to both male and female
customers. This suggests that AdventureWorks has successfully created offerings that resonate
with a diverse customer base, irrespective of gender.

In summary, AdventureWorks' target market in 2013 was primarily focused on the United States,
with a strong presence and significant sales contribution. The demographic profile highlighted a
higher representation of customers aged 45-64 and a majority with income levels above 30K
dollars. These factors collectively influenced sales and revenue generation. AdventureWorks can
leverage these insights to further optimize its marketing strategies, product offerings, and
customer engagement initiatives to capitalize on the strengths of its target market and drive
sustained growth.

35
 D. CHANNEL ANALYSIS
D.1. Dashboard: Reseller and Internet Channel Analysis

The Sales By Channels Dashboard provides a comprehensive view of the distribution channels
through which the company's products are sold. By analyzing sales performance across Reseller
and Internet channels, the company can gain valuable insights into customer preferences, market
trends, and the effectiveness of each channel in driving sales. The dashboard includes the
comparison of Reseller and Internet channels regarding the amount of sales, order quantity, sales
per order, sales by region, product category and promotion type.

Overall, in the year of 2013, Reseller sales channel demonstrates a significant level of success
(amounted to a total of $33.5M), contributing to a 73% of the overall sales revenue. The Internet
sales channel, despite its lower total sales figure, which is only half of Reseller sales ($16.35M),
demonstrates a slight higher revenue per order compared to Reseller sales. With an average sales

36
per order of $317, the Internet sales channel still showcases its ability to maximize revenue on a
per-transaction basis.

D.1.1 Sales by Channels

The Sales Overview by Channels charts provide a comprehensive overview of the sales amount,
order quantity, and sales per order of Reseller and Internet channels, enabling a comparison of
the performance in terms of sales volume, customer demand, and efficiency in generating sales.

The total sales amount of the reseller, depicted over the years from 2011 to 2013, showcases the
dynamic nature of the company's sales performance. Starting in 2011, the total amount of sales
generated by Resellers amounted to $1.5M for the first month. It fluctuated throughout the year,
reaching a total sales of $18M by the end of 2011. The following year, in 2012, sales continued
to climb, reaching an impressive $28M. Moving into 2013, Reseller sales reached a peak of $4M
at the beginning of the year and remained consistently around $3 million per month, ultimately
culminating in a total sales amount of $33M for the year. Despite the overall increase in sales and
order quantity, the sales amounts exhibited fluctuations over the months, reflecting the
influence of seasonal factors and market dynamics on customer demand and purchasing
behavior.

By contrast, the Internet Sales channel demonstrated a consistent and noteworthy growth
trajectory in terms of sales amount and order quantity. Commencing in January 2011 with sales
amounting to $470K, this channel experienced a remarkable surge, reaching an impressive $7M

37
by December 2011. The sales amount increased steadily and subsequently, from March 2013
onwards, monthly sales consistently surpassed the $1M mark, culminating in a peak of $16M at
the end of the period. Despite occasional fluctuations, the overall trend exhibited a steady and
significant increase in sales. These figures underscore the increasing prominence of online sales
and the growing adoption of e-commerce platforms by customers.

The data indicates that both Reseller and Internet channels have demonstrated positive sales
growth, albeit at different scales. Reseller sales exhibit higher overall sales volume, while Internet
Sales exhibit a notable growth rate. These findings suggest that businesses can benefit from
leveraging both channels in their sales strategies. By capitalizing on the established network and
distribution capabilities of Resellers, companies can tap into a large customer base and generate
substantial sales. Simultaneously, the growing popularity of online shopping and the increasing
revenue generated through Internet Sales indicate the need for businesses to invest in and
optimize their online presence.

In addition to analyzing the total sales amounts, examining the sales per order provides valuable
insights into customer purchasing behaviors and trends within the Reseller and Internet
channels. Although the order quantity of both channels parallel with the increase of sales
amounts, the sales per order metric is a crucial indicator as it quantifies the average amount of
money spent by each customer, shedding light on their buying patterns and preferences.

When considering the Reseller channel, the data reveals a significant decrease in sales per order
over the years. At the beginning of the period, the sales per order for Reseller sales stood at $749.
However, by 2013, this figure had decreased to $333. Similarly, the Internet channel also
experienced a historical drop in sales per order throughout the analyzed period. Starting at $3,2K,
the sales per order for Internet sales gradually declined, reaching only $340 by the end of the
period.

This decline suggests a potential shift in customer behavior, with customers making smaller
purchases per order within both Internet and Reseller channels. The economic impact from the
2008 financial crisis could indeed be the main reason that contributed to the decrease in sales
per order in both the Reseller and Internet channels. During times of economic uncertainty,
individuals and businesses often become more cautious with their spending and prioritize

38
essential purchases over discretionary ones. This shift in consumer behavior can lead to reduced
spending on products, resulting in lower sales per order (Fader, Hardie, & Lee, 2009).

39
 D.1.2 Sales by Region by Channels

The Sales by Region chart by Channels provides an overview of sales performance across different
regions, categorized by channels, offering valuable insights into the geographic distribution of
sales and the effectiveness of each channel in reaching customers in specific areas.

The reseller channel emerged as a dominant force, generating significant revenue from the
United States, which accounted for 57% of total sales. This signifies the effectiveness of the
reseller network and the success of partnerships in capturing a significant share of the market.
Additional key markets contributing to reseller sales included Canada (15%), France (9%), and the
United Kingdom (8%), affirming the strength of presence in these regions. It is indeed noteworthy
that regions with a higher number of resellers tend to generate greater sales amounts. This
suggests that a larger reseller network facilitates better customer connections and engagement,
leading to increased sales.

Conversely, regions with fewer resellers may witness a higher inclination towards online
purchases, potentially due to limited offline shopping options. Therefore, while the reseller
channel demonstrates exceptional performance, it is equally important to recognize the growing
significance of the internet sales channel. Although the United States still represents the largest
market share in internet sales at 33%, Australia emerged as a notable market, including
approximately 26.5% of internet sales. This indicates the success of the online sales strategy and
the increasing acceptance of e-commerce platforms among Australian customers. Furthermore,
the internet sales channel shows a more evenly distributed percentage of sales across the United

40
Kingdom, Germany, France, and Canada, demonstrating a balanced preference for online and
offline purchasing options in these regions.

The observed trend of increased online shopping in developed countries during 2013 aligns with
the growing popularity and convenience of e-commerce (Liao and Keng, 2013). The developed
markets' adoption of online shopping reflects changing consumer behaviors and the increasing
trust and acceptance of digital platforms for purchasing goods. While the reseller channel
continues to thrive with in-person interactions, the internet channel caters to customers seeking
convenience and accessibility. By leveraging the strengths of both channels, the company could
maximize revenue potential and provide a seamless omnichannel experience to meet the
evolving needs of a diverse customer base.

D.1.3 Sales by Product Category by Channels

The Sales by Product Category by Channel chart highlighted a significant transformation in the
product portfolio over the analyzed period.

Beginning in 2012, the Internet channel only accounted for a mere 16% of total product quantity,
with bikes being the sole category sold online. This suggests that customers were still hesitant to
embrace online shopping, emphasizing the need to prioritize efforts in enhancing online
presence and customer experience, particularly for clothing or accessories that require physical
evaluation before purchase.

However, in the following year, it witnessed a significant shift in customer behavior. All three
categories - Accessories, Bikes, and Clothing - achieved sales volumes through the Internet

41
channel. Notably, bikes registered approximately 13K units sold online, while accessories and
clothing achieved 15K and 8K units. This data reveals the continued preference of customers to
physically explore and evaluate products before making a purchase.

In 2013, accessories demonstrated a relatively balanced sales quantity between the internet and
reseller channels, indicating customers' flexibility in their preferred purchasing method. Despite
the emergence of online channels, it is noticeable that offline channels continued to dominate in
terms of order quantity. This data signifies that customers still value the opportunity to physically
explore and assess products before committing to a purchase. Due to the fact that customers
between the ages of 45 and 64 constituted the demographic with the highest sales figures for
the company, this age group exhibits certain apprehensions when it comes to online purchases.
They tend to be wary of buying goods or services through digital platforms, prefer offline
shopping experiences, and have limited familiarity with online transaction processes (Chandra,
A. K., & Sinha, D. K., 2013). Moreover, customers only purchased bike components through
offline channels. The technical aspects and specialized knowledge required for bike components
make offline channels more desirable, as customers can benefit from expert guidance,
personalized assistance, and professional installation services.

D.1.4 Sales by Promotion by Channels

The Sales by Promotion Chart by Channels provides an overview of the sales performance across
different promotional strategies and channels, demonstrating the effectiveness and impact of
various promotions on sales outcomes.

In 2013, the sales statistics for promotions by internet and reseller channels revealed interesting
trends. The volume discount promotion showed a substantial difference in order quantity. There

42
was $2.39M with 19K orders through resellers and an impressive $11.02M with 28,5K orders
through the internet, indicating a higher demand for this promotion through the internet
channel.

The second generating most sales of promotion tools was the new product promotion with
generating 2,3K orders via resellers and 1,1K orders through the internet. In terms of sales
amount, the new product promotion had sales of $1.02M through resellers and $1.87M through
the internet. Despite the lower order quantity, the revenue of the internet was still higher than
reseller’s, highlighting the significant revenue potential of this promotion.

Comparison to Volume Discount and New Product Promotion type, the two remaining promotion
tools had a low order quantity along with the sales amount. The discontinued product promotion
generated $25.9 million and 382 units through reseller sales and $127.7 million and 226 units
through internet sales. The seasonal discount promotion had sales of $9.1 million and 680 units
through reseller sales and $216 million and 6174 units through internet sales.

The data shows that promotions conducted through the Internet channel outperform those
through the Reseller channel, resulting in higher sales and order quantities. This highlights the
importance of leveraging online platforms for promotional activities. To more details, the volume
discount and new product promotion stood out as highly successful strategies, driving significant
sales and order quantities across both channels. Interestingly, the discontinued promotion,
despite generating lower order quantities through resellers, achieved notable sales figures
through the Internet channel. This suggests the potential for leveraging this promotion type to
drive online sales and reach a wider customer base. On the other hand, the effectiveness of the
seasonal discount promotion appeared to be limited. This indicates the need for a reevaluation
of the promotional strategy to enhance its impact and generate more favorable results.

43
 D.2. Dashboard: Reseller Channel Analysis

As resellers play a pivotal role in generating substantial revenue for the company, conducting a
detailed analysis of their performance becomes crucial. The Reseller Dashboard offers an
invaluable evaluation of the reseller channel, providing deep insights into top-performing
resellers, the performance of various product lines, sales categorized by business type, year of
establishment and number of employees. This level of granularity allows the company to identify
common characteristics or behaviors among the top-performing sales representatives that
differentiate them from others in terms of sales volume and revenue generation. By examining
these factors, companies can gain valuable insights into the strategies, approaches, and traits
that contribute to success. It also empowers to replicate and optimize these practices across the
reseller network, driving further revenue growth and strengthening the company's position in
the market.

44
The reseller sales dashboard reveals that resellers with the highest sales are predominantly those
that opened between 1994 and 2005 with sales per reseller totaling $47,896. This period
represented a phase of remarkable success and growth for these resellers, indicating their ability
to capitalize on market opportunities. Notably, the analysis also highlights that the warehouse
business type holds the majority among these high-performing resellers. This finding emphasizes
the significance of offering a wide product selection and the convenience of a comprehensive
shopping experience.

D.2.1 Top Reseller by Channel

The Top Reseller by

Sales chart identifies
the resellers with the
highest sales volume,
allowing the company
to prioritize strategic
partnerships, provide
additional support, and
explore collaboration
opportunities for
further growth.

In 2013, the company

partnered with a total
of 488 resellers, each contributing to the company's sales revenue at different levels. While the
highest sales reached an impressive $437K, it is important to note that there were resellers on
the lower end of the spectrum, generating sales as low as $1.

Amongst these resellers, the top 20 emerged as key contributors to the company's success,
accounting for a significant portion of the overall sales revenue. Roadway Bicycle Supply and Field
Trip Store showed exceptional performance, securing the top two positions with sales of $437K
and $427K, respectively. Their ability to attract a substantial customer base and generate
substantial revenue highlights their effectiveness in the market. Brakes and Gears, Perfect Toys,

45
Thorough Parts and Repair Services, and Westside Plaza also demonstrated their proficiency by
achieving sales around the $400K mark. The remaining resellers within the top 20 range achieved
sales amounts ranging from $300K to $350K, further solidifying their importance in driving the
company's financial growth.

The substantial sales figures achieved by these resellers reflect their effective business strategies,
strong customer engagement, and competitive product offerings. Their prominence in the
market indicates the trust and loyalty they enjoy from consumers, resulting in significant revenue
generation.

Based on these insights, it is advisable for the company to focus on enhancing its partnerships
with these top-performing resellers. Strengthening collaboration, providing additional support,
and exploring new growth opportunities with these key contributors will help ensure continued
success and drive further revenue growth for the company in the future.

Delving into the specifics, an in-depth analysis was conducted to discern the shared attributes
and distinguishing factors among the leading resellers in terms of sales. This scrutiny aimed to
uncover the common characteristics that contribute to their remarkable sales performance,
providing valuable insights for the sales report.

D.2.2 Reseller Sales by Business Type

The Reseller Sales by Business Type chart gains a deeper understanding of how each business
type contributes to the overall sales landscape. As a result, the company is willing to identify
patterns, trends, and potential opportunities for growth of the reseller channel.

46
Warehouse resellers stood out with a substantial increase in sales amount, soaring from $8,8M
in 2011 to an impressive $16.4M in 2013. During this time, the e-commerce industry was rapidly
expanding, with more consumers turning to online shopping for convenience and a wider
selection of products. Warehouse resellers played a vital role in meeting the growing demand for
storage and order fulfillment services in the e-commerce landscape of 2013. Additionally, supply
chain management technologies such as Warehouse Management Systems, Automated Storage
and Retrieval Systems, or Barcode and RFID Technology emerged allowing resellers to leverage
advanced logistics and optimize their operations (Lim, M. K., Bahr, W., & Leung, S. C., 2013). The
quarterly order frequency of the warehouse reseller type serves as a compelling indicator of their
steadfast commitment to the company's objectives. This metric demonstrates the resellers'
consistent engagement and dedication in driving sales and maintaining a strong business
relationship that underscores the resellers' reliability and their integral role in contributing to the
company's overall success.

Value Added Resellers also play a crucial role in the reseller channel. It witnessed a remarkable
surge in total sales from $7.3M in 2011 to $14.4M in 2013. Value Added Resellers typically offer
a wide range of products and services beyond just bicycles, such as maintenance and repair
services, customization options, and bundled product packages. This added value and versatility
in their offerings attract a broader customer base and contribute to their higher sales figures
(Investopedia). The semi-annual order frequency of value-added resellers reflects the sustained
demand they experienced throughout the year. This stability in order volume recommended the
company to enhance this partnership in the evolving retail landscape.

Specialty Bike Shops, despite experiencing an increase in sales amount from $2M in 2011 to
$2.7M in 2013, exhibited comparatively slower growth in percentage terms when compared to
the other two reseller types. The relatively lower sales growth could be attributed to their
narrower product offerings and the evolving dynamics of the retail landscape in 2013. Specialty
Bike Shops catered to a specific niche market within the cycling industry, offering specialized
bicycles and related accessories. While this targeted approach allowed them to serve a dedicated
customer base with specific needs, it also limited their potential customer pool. Additionally,
customers' preferences and buying habits could have shifted towards online channels and larger
retailers, impacting the growth potential of smaller specialty shops. Unlike Value Added Resellers

47
and Warehouses, which have higher order frequencies, Specialty Bike Shops have an infrequent
ordering pattern that place orders with the company on an annual basis.

D.2.3 Reseller Sales by Year Opened and Number of Employees

The chart depicting Reseller Sales by Year
Opened and Number of Employees offers
valuable information into the correlation
between the duration of reseller
operations, their scale in terms of
workforce, and their sales performance.
The resellers are categorized based on
their year of establishment, namely 1977
to 1983, 1984 to 1993, and 1994 to 2005.

Resellers that commenced operations between 1974 and 1983, employing a total of 4,875
individuals, achieved the lowest sales figures of $9.9 million. In contrast, resellers established
between 1984 and 1993, with a workforce of 7,066 employees, generated slightly higher sales of
$11.1 million. The most significant observation arises from resellers opened during the period of
1994 to 2005, which boasted 8,331 employees and recorded the highest sales amounting to $12
million.

The data suggests that the newly opened resellers experienced more success in terms of sales
compared to long-standing ones. The resellers from the earlier period may face challenges in
staying relevant with changing customer preferences and trends, which could impact on their
sales performance. Additionally, the lower number of employees in the older stores may limit
their ability to provide satisfactory customer service and adapt to evolving market demands. By
contrast, resellers established during 1994 and 2005 benefited from a more developed market
and a growing customer base compared to the long-standing stores. The larger number of
employees suggests a stronger workforce capable of effectively meeting customer demands and
providing exceptional service (Khwaja, A., & Yang, N., 2022). Moreover, resellers that opened
during this time frame may have capitalized on technological advancements and market
knowledge to deliver innovative solutions.

48
The changing market dynamics, evolving consumer preferences, and advancements in
technology require resellers to continually adapt and innovate in order to remain competitive. It
becomes crucial for these resellers to assess their strategies, update their offerings, and invest in
employee training to enhance customer satisfaction and boost sales.

D.2.4 Reseller Sales by Product Line

The Reseller Sales of Product Lines shows the performance of different product categories within
the reseller channel. This information enables resellers to optimize product portfolios, allocate
resources effectively, and develop targeted marketing strategies for maximum sales potential.

In 2011, the total sales of AdventureWorks Company's product lines revealed intriguing insights.
The Mountain product line achieved sales of approximately $10 million, while the Road product
line recorded sales of around $8 billion. Surprisingly, the Touring product line was not purchased
during this period. During that time, people did not have a significant inclination or habit of
engaging in backpacking or long-distance cycling trips. The popularity of touring bikes was
influenced by factors such as changing travel preferences, availability of alternative
transportation options, or a lack of awareness about the benefits and experiences associated
with touring.

49
In the next year, while the Mountain product line experienced a slight growth in sales, reaching
around $12M, the Road product line witnessed a significant surge in sales, amounting to
approximately $16M. The Touring product line was introduced this year with sales around $1M.

Moving to 2013, three product lines, namely Mountain, Road, and Touring, all achieved quite
similar sales figures, approximately amounting to $11M. Notably, Touring product lines
experienced substantial growth compared to previous years. In that time, there was an emerging
trend to engage in outdoor exploration and adventurous travel experiences. Touring bikes offer
the versatility and durability necessary for long-distance trips and backpacking adventures.

However, the emergence of touring bikes in 2013 seemed to have a corresponding impact on the
sales of mountain and road bikes, as both product lines experienced a decrease in sales. To
address these decreases, the company should consider diversifying marketing strategies,
enhancing product differentiation, expanding target customer segments, providing
customization options, and investing in research and development. By allocating appropriate
marketing efforts, highlighting unique features, targeting new customer segments, offering
customization options, and continuously innovating, the company can mitigate the impact and
maintain a strong presence in all product lines.

50
III. CONCLUSION
A. KEY FINDINGS AND INSIGHTS
Sales performance
● Sales Growth: Sales in developed countries markets experienced slow and modest
growth. Nevertheless, it is still considered a positive recovery compared to the data
from the years 2011 and 2012. Therefore, it can be said that AdventureWorks still has
the potential to develop in the foreseeable future.
● Seasonal and Holiday Impact: Peak sales and order quantity were observed during the
summer and holiday seasons, indicating customer preferences and successful strategies
during those periods.
● Average Order Value: The average order value decreased in 2013, reflecting cautious
spending during the economic recession.
● Regional Sales: The United States had the highest sales, followed by Canada and Australia,
indicating market presence and potential growth opportunities.
● Product Category Sales: Product category preferences indicated strong demand for bikes
and fluctuations in other categories.
To evaluate in a comprehensive manner, 2013 was not a year of exceptional growth. However,
considering the challenging period, the company managed to maintain stable sales and
profitability, demonstrating significant potential for the future.

Product
● Product Categories: The "Bikes" category emerged as the top-performing category in
terms of total sales, with a substantial amount of $42.3 million. However, the
"Accessories" category had a higher order quantity, indicating that customers tended to
purchase more accessories due to their relatively lower selling price compared to bikes.
● Consumer Preferences: Yellow and black emerged as the most popular colors among
consumers, with sales totaling $15 million and $14.5 million, respectively. This suggests a
strong consumer demand for products in these shades.
● Cross-Selling Opportunities: The analysis of cross-selling patterns revealed that the top
five products frequently ordered alongside bikes were from the accessories category. This
finding highlights the importance of offering complementary accessories to enhance the
biking experience and capitalize on cross-selling opportunities.

51
Customer
● Top sales per customer: Australia with the highest number of sales per customer, which
showcased the high order value of this country.
● The customer retention rate (CRR): the top 10 customers was also notable in the report
above, indicating their loyalty and continued engagement with the company.
● The target market: The US was recognized as a target market with 42.3% of customers
residing in it.
● The highest total sales amounts and total profit: The highest amount recorded in the
United States and the lowest in Canada. This may be attributed to various factors such as
market demand, economic conditions, and the company's market presence in each
country.
● The analysis of customer demographic: Age ranges revealed that a significant proportion
of customers fell within the 45-64 age range with yearly income range more than 30K
dollars and having a close distance (0-1 miles) from their home to workplace. This
demographic segment represents a valuable target market for the company.
● Identify key customer segments: Examine customer data to locate key client groups that
have strong retention and loyalty rates.

Sales by channel
● Different strategies are needed for internet and reseller channels: While resellers
generate higher sales overall, the internet channel shows higher sales per order,
indicating growth potential. Separate strategies tailored to each channel are necessary to
maximize sales.
● Reseller presence drives total sales: The more reseller stores there are, the larger the
total sales by reseller. This highlights the importance of physical reseller locations in
providing easy access to customers.
● Different regions require different approaches for sales channels: The reseller channel
primarily focuses on sales in the US, while the internet channel has the potential to
expand its presence evenly across borders, especially with the growth of e-commerce.
This indicates the opportunity to leverage the internet channel to reach customers
beyond geographical boundaries and tap into international markets.

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 ● Buying preferences vary by product category and channel: Bikes and clothing are
preferred to be purchased directly through resellers, whereas accessories achieve similar
unit sales ratios across both channels. Components can only be sold through resellers,
indicating their exclusivity in this channel.
● Promotional effectiveness varies by channel: The internet channel demonstrates
superior effectiveness for promotions compared to resellers. Volume discounts are
successful in both channels, while new product launches and discontinued item
promotions show greater impact on the internet channel. On the other hand, seasonal
discounts yield less favorable results. These findings offer valuable guidance for refining
promotional strategies in each respective channel.

Reseller
Through Reseller Dashboard analysis, there are common identifiable characteristics for a high-
grossing reseller:
● Business Type: Resellers belonging to the Value-Added Reseller or Warehouse business
types tend to generate higher revenues. This suggests that customers are attracted to
resellers offering a wide product catalog and value-added services.
● Time proximity: The closer the Year Opened is, the higher the revenue generated. This
finding indicates that newly opened resellers possess a greater potential for generating
higher sales and revenue. When a reseller is newly established, they have the advantage
of capturing fresh market opportunities, attracting new customers, and building brand
recognition. As time progresses, established resellers may face increased competition and
market saturation, making it relatively more challenging to achieve the same level of
revenue growth as newer counterparts.
● Number of Employees: The number of employees plays a crucial role in revenue
generation, as a higher employee count indicates better customer service and potentially
leads to increased sales. Investing in a well-staffed team can positively impact overall
revenue.
● Product line: While the product lines of the three current resellers are relatively equal,
the notable highlight is the rise of touring bikes. However, it is essential to maintain
attention on all three product lines, as the mountain and road categories have
experienced slight decreases in sales alongside the growth of touring. Monitoring all
product lines ensures a balanced sales approach.

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 B. RECOMMENDATIONS FOR IMPROVING SALES PERFORMANCE
Based on the insightful analysis and comprehensive examination of the key findings, some
recommendations have been meticulously crafted and are now proposed for the express purpose
of ardently enhancing and optimizing the overall sales performance, thereby driving substantial
growth and profitability for the company in the next year.

Overall:
- Release new bike products: As the main revenue-generating product of Adventure Works
Cycles is bikes, it naturally deserves the highest allocation of resources. In our opinion,
the company should introduce new bike models with different designs and price ranges
to cater to diverse customer preferences. For example, Adventure Works Cycles can
capture the market of urban commuters and recreational cyclists. Leveraging its expertise
in producing Road Bikes and Mountain Bikes, the company can introduce a Hybrid bike
product that combines comfort and practicality.
- Based on the analysis of the popularity of the color yellow in products, the company can
capitalize on it and make yellow the color brand. This can help raise awareness among
people about Adventure Works Cycles' Yellow Bike.
- Capitalize on Cross-Selling Opportunities: Companies can enhance their sales
performance and achieve quantity goals by utilizing cross-selling techniques. Strategic
bundling or promotion of related products, such as offering accessory discounts with bike
purchases or suggesting compatible components for clothing items, encourages
customers to make additional purchases. This not only increases overall revenue but also
boosts order quantities for clothing and components. Despite lower sales amounts, these
categories exhibit substantial order quantities, indicating their importance in fulfilling
essential customer needs. Recognizing this trend allows companies to grasp the value and
demand for these products, enabling them to implement effective cross-selling strategies
and drive customer satisfaction.
- Strengthen Customer Engagement and Retention: Adventure Works Cycles should focus
on building strong customer relationships and increasing customer loyalty. The company
should provide exceptional customer service, personalized recommendations, and after-
sales support such as loyalty programs, referral incentives, and exclusive offers for top
customers to encourage repeat purchases and drive customer retention.

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Depending on the customer segment, we propose that the company should tailor the company's
approach to each customer segment to maximize the effectiveness of our sales campaigns and
cater to their preferences.

- Reseller:
+ According to the analysis, reseller sales have a significantly higher sales rate
compared to internet sales. When compared to customer portraits, customers
within the age range of 45-64, representing middle-aged and older customers,
constitute the majority. Gender representation is equal, with a slight preference
for married couples with no children. Approximately 71% of customers earn more
than 30,000 dollars, have a bachelor's degree, and work in professional
occupations. This indicates that middle-aged customers tend to make purchases
through resellers. Therefore, the company can focus on boosting sales through
resellers to target the market effectively.
+ Upon examining the sales distribution by region, specifically for resellers, the
majority of sales are concentrated in the US due to its domestic market and a
higher number of resellers. However, in countries further away, such as Australia,
Germany, UK, and France, the sales volume through resellers is significantly lower
and considerably distant from the US. Therefore, we recommend that the
company increase the number of reseller stores in countries with low sales
through resellers as a means of market expansions.
+ Collaborate with Resellers: The company can selectively partner with resellers that
possess certain characteristics associated with high sales performance. Based on
business type, this includes collaborating with Value Added Resellers or Specialty
Bike Shops. Enhancing partnerships with warehouse and value-added reseller
types would be advantageous for the company. Collaborating closely with
warehouse resellers could provide the company with access to a larger customer
base and leverage its operational efficiencies for enhanced sales performance.
Similarly, value-added resellers offer additional value through services like
customization and support, meeting unique customer needs, and providing
comprehensive solutions. Strengthening partnerships with value-added resellers
can tap into their expertise, expanding the company's market reach and driving
mutual growth. While specialty bike shops play a role in the market, focusing on

55
 warehouse and value-added resellers may present greater growth opportunities
due to their sales performance, market trends, and ability to cater to evolving
customer demands. Furthermore, focusing on resellers that have been
established between the years 1994 and 2005, along with a substantial number of
employees, can prove beneficial. By strategically aligning with resellers exhibiting
these traits, the company can enhance its sales potential and capitalize on its
expertise and resources in driving business growth.
+ Implement Targeted Promotional Strategies: Adventure Works Cycles should
tailor promotional strategies for reseller sales channel based on their
effectiveness. The company should focus on volume discounts and should work
closely with resellers to align promotional activities with their preferences and
leverage their physical presence to drive sales.
+ Products such as bikes and components, due to their high value, often create a
sense of unease when purchased through online channels. Therefore, the
company can boost and prioritize sales of bike-related products or components by
leveraging resellers in physical stores. By emphasizing the sale of these items
through brick-and-mortar resellers, the company can instill greater confidence in
customers and provide a more shopping experience, ultimately increasing sales
and customer satisfaction.
+ Enhancing in-store experience: Recognizing the importance of physical interaction
for certain product categories, the company should focus on creating engaging in-
store experiences. Well-designed retail spaces, knowledgeable staff, and
interactive displays will enhance the customer journey and provide a compelling
in-store experience that complements our online presence. By adopting an
omnichannel approach, the company can cater to diverse customer preferences
and deliver a cohesive brand experience.

- Internet:
+ Expand Internet Channel Presence: The year 2013 witnessed a strong growth
momentum in e-commerce, marking the success of major online marketplaces
such as Amazon and eBay (Jones, C., 2013). Adventure Works Cycles should
recognize the growth potential of the internet channel and invest in expanding its
presence. This could serve as a foundation to cater to the younger segment,

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 specifically those within the age range of 25 to 40 and engage them more
effectively as young customers are known to be more active and receptive to
online shopping experiences. As a result, the company should improve the user
experience of its website, optimize online marketing campaigns, and explore
partnerships with online marketplaces to reach a broader customer base.
Adventure Works Cycles can leverage the internet channel to tap into
international markets and explore opportunities for cross-border sales.
+ Implement Targeted Promotional Strategies: Adventure Works Cycles also need
to implement promotional strategies for the internet channel. The company could
focus on volume discounts, new product launches, and discontinued item
promotions for the internet channel.
+ In contrast to enhancing sales for high-value products like bikes and components
through resellers, the company can concentrate on the online channel for lower-
value and more versatile items such as accessories and clothing. These product
categories are commonly bought and sold online, providing an opportunity for the
company to tap into the e-commerce market and cater to the preferences of
online shoppers. By strategically focusing on these products, the company can
leverage the convenience and accessibility of the internet to drive sales and
expand its customer base.
+ Enhancing online shopping experience: To address these findings and capitalize
on opportunities for growth, the company must prioritize enhancing the online
shopping experience by investing in intuitive website interfaces, streamlined
product search capabilities, and secure payment gateways. Moreover, seamless
integration of the inventory management systems across channels is crucial for
providing customers with accurate product availability and pricing information.
+ Raise customer awareness about online shopping: Educating customers about the
benefits of online shopping and promoting the convenience and reliability of our
Internet channel should also be a key focus. Targeted marketing campaigns and
promotional activities can raise awareness, incentivize online purchases, and drive
traffic to our online platform. Additionally, gathering and leveraging customer
feedback through reviews and ratings will help the company refine the products,
services, and online experience based on customer preferences and expectations.

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