MRA Project

Automobile Parts
Company

RAJENDRA LADDA
PGDSBA
TABLEAU LINK:
HTTPS://PUBLIC.TABLEAU.COM/APP/PROFILE/RAJENDRA.LADDA/VIZ/RAJENDR
ALADDAMRAAUTOMOBILESPROJECT/SHEET6?PUBLISH=YES
Agenda

 Executive Summary
 Problem Statement
 Data Analysis Methodology
 Key Findings
 Customer Insights
 Marketing Strategy Recommendations
 Conclusion
Executive Summary

 An automobile spares company has provided transactional data that contents totally 2747
transactions spanning over 29 months from Jan-2018 to May-2020. There are totally 20 attributes in
the data.
 The company manufactures 109 types of automobile parts for 7 different automobile lines and has
a customer base in 19 countries with 89 unique customers.
 The monthly average sales grew from 279K in 2018 to 389K in 2019. However the 2020 monthly
average has dropped to 347K. The company needs to seriously introspect why the sales are
declining and what can be done to outperform 2019 average sales.
 For this we have conducted Marketing Analytics using
 EDA – Exploratory Data Analytics to find out current trends and purchase patterns

 RFM – Recency, Frequency, Monetary based customer segmentation to find best customers

 Market Basket Analysis – To identify the items purchased together to be able to design cross selling strategies

 Finally, we have summarized the key findings from the above analyses and recommendations
based on these findings.
 We conclude by highlighting potential benefits of implementing these recommendations.
Problem Statement

1. Find the underlying buying patterns of the customers

2. Provide the company with suitable insights about their customers
3. Recommend customized marketing strategies for different
segments of customers
Data Analysis Methodology

 EDA – Exploratory Data Analytics to find out current trends and

purchase patterns
 RFM – Recency, Frequency, Monetary based customer
segmentation to find best customers
 Market Basket Analysis – To identify the items purchased together to
be able to design cross selling strategies
Exploratory Data Analysis –
Numerical Variables
Exploratory Data Analysis – String
Variables
Histograms

Sales Quantity Recency

Order Line
MSRP
Number
Price
Sales Analysis
Sales Analysis
Status
Sales Trend
Status Analysis
Findings from EDA

 On an average 35 number of items are ordered in each order

 Average price of each item is 101
 Average Sales value of each order is 3553 While Min is 482 and Max is
14083
 Average of days since last order is 1757 days while min is 42 and max is
3562
 There are total 6 status type 92.5% of which have shipped status out of
which Classic Cars shipped status is highest
 There are total 7 product lines. Highest orders are for Classic Car spares
which is 34.55%
 USA is highest selling country with 34% share of transactions whereas
Madrid is highest selling city with 11% share
Findings from EDA

 USA sales is 33.5M

 Ireland is the lowest selling country with only 57K sales
 Medium deal-size is the highest selling with 49 share of transactions
 Classic Cars spares give highest sale of 3.8 M followed Vintage Cars
1.8M and Trucks & Buses 1.1M
 Trains spares give lowest sale of only 2.3 M
 Lowest sales happen during June, July, Dec while highest sales
happen in November
 Overall Classic Cars and Vintage Car spares business in USA is seen
to be the well set business of the organization
RFM Analysis

 Recency: How recently the customer has purchased

 Frequency: How frequently the customer has been purchasing
 Monetary: How much the customer has spent

based on the above parameters the customer segmentation will be

done in Gold, Silver and Bronze
 Gold customers are to be retained
 Silver customers to be converted to Gold and
 Bronze customers to let go
RFM Table

Monetary
Recency Frequecy H M L
H 11 Gold
H M 1 Gold 9 Silver
L 1 Silver 1 Silver
H 7 Gold 2 Silver
M M 1 Silver 19 Silver 1 Silver
L 4 Silver 10 Silver
H 2 Silver
L M 8 Silver 1 Let Go
L 1 Let Go 10 Let Go
RFM Findings

 There are 19 customer that can be categorized as our gold customers. We

must put our efforts to retain them. These are the customers who are driving
our business.
 There are 12 customers that are not worth putting efforts on. These customers
can go if they want.
 There are 58 Silver customer we need to raise to gold category by putting
efforts on them and motivating them to buy regularly, more frequently and
spend more.
RFM – Customer Lists
Gold Customers R F M Silver Customers R F M Silver Customers R F M Lowest Value Customers R F M
Auto Canal Petit H MM Toys of Finland, Co. MMM
Anna's Decorations, Ltd H H H
Baane Mini Imports H MM
Australian Collectables, Ltd L ML
Vida Sport, Ltd MMM
Australian Collectors,
H H H Collectables For Less Inc. H MM Vitachrome Inc. MMM Diecast Collectables L L M
Co. FunGiftIdeas.com H MM giftsbymail.co.uk MMM Alpha Cognac L L L
Euro Shopping Channel H H H Gift Depot Inc. H MM
Classic Gift Ideas, Inc M M L Auto-Moto Classics Inc. L L L
La Rochelle Gifts H H H
Gifts4AllAges.com H MM
Classic Legends Inc. ML M
Oulu Toy Supplies, Inc. H MM Bavarian Collectables
Land of Toys Inc. H H H Quebec Home Shopping Mini Caravy ML M L L L
H MM Super Scale Inc. ML M Imports, Co.
Mini Gifts Distributors Network
Ltd.
H H H UK Collectables, Ltd. H MM Volvo Model Replicas, Clover Collections, Co. L L L
ML M
Online Diecast Lyon Souveniers H L M Co Double Decker Gift Stores,
Creations Co.
H H H
Australian Gift Network, Co H L L Atelier graphique ML L L L L
Ltd
Salzburg Collectables H H H Handji Gifts& Co MH M Auto Assoc. & Cie. ML L
Mini Creations Ltd. MH M Boards & Toys Co. ML L
Gift Ideas Corp. L L L
Souveniers And Things
Co.
H H H Corrida Auto Replicas, Ltd MMH CAF Imports ML L Iberia Gift Imports, Corp. L L L
Amica Models & Co. MMM
Technics Stores Inc. H H H
Canadian Gift Exchange
Cambridge
ML L Mini Auto Werke L L L
MMM Collectables Co.
The Sharp Gifts
H H H Network Royale Belge L L L
Warehouse Daedalus Designs
Collectable Mini Designs Co. MMM ML L Signal Collectibles Ltd. L L L
Diecast Classics Inc. H MH Heintze Collectables MMM Imports
Herkku Gifts MMM Microscale Inc. ML L
AV Stores, Co. MH H Online Mini
La Corne D'abondance, Co. MMM ML L
Danish Wholesale Marta's Replicas Co. MMM Collectables
MH H
Imports Osaka Souveniers Co. M L L
Mini Classics MMM
L'ordine Souveniers MH H Motor Mint Distributors Inc. MMM West Coast
ML L
Muscle Machine Inc MH H Petit Auto MMM Collectables Co.
Royal Canadian Dragon Souveniers, Ltd. L H H
Reims Collectables MH H MMM
Collectables, Ltd. Rovelli Gifts L H H
Saveley & Henriot, Co. M H H Suominen Souveniers MMM Blauer See Auto, Co. L MM
Tekni Collectables Inc. MMM
Scandinavian Gift Ideas M H H Cruz & Sons Co. L MM
Tokyo Collectables, Ltd MMM
Enaco Distributors L MM
Toms Spezialitten, Ltd MMM
Marseille Mini Autos L MM
Norway Gifts By Mail,
L MM
Co.
Signal Gift Stores L MM
Stylish Desk Decors, Co. L M M
Toys4GrownUps.com L MM
Knime Model
Conclusion & Reccomendations

 If we stop putting efforts on the bottom 12 customers and divert those efforts
on gold and silver customers, we will surely get higher sales in upcoming
months
 The analysis month being June, we have 2-3 months of lowest sales when we
can align the efforts and gear up for the peak sales of November.
 We should concentrate on medium scale category where we have highest
sales. At the same time we need to focus on USA market on Classic cars and
Vintage Cars