CIA 4

BUSINESS ANALYTICS
VISHAL MEGA MART

Raghav Bindal 22211755, Ishaan Gupta 22211731, Praveen Patel

2221153, Arpit Singh 22211710, Naitik Agrawal 22211749
 Table Of Content

Introduction Data Sources

Business Problem Predictive Analysis

Analytical Problem Outcome of Analysis

Conclusion

1
 Introduction

Vishal Mega Mart is India’s leading Fashion led hypermarket with 550+
stores spread across India. Vishal Mega Mart’s mission is to make
aspirations affordable for all its customers by providing shoppers with a
wide range of Latest Fashion, General Merchandise and Grocery needs.
Vishal’s customers love its unique combination of great quality and
amazing prices.

2
 Business Problem

Vishal Mega Mart, like many stores, struggles with inventory loss, also
known as shrinkage. This can shrink their profits in a few ways.
Shoplifters might snatch items, employees could make mistakes while
stocking or handling goods, or there could be errors with suppliers
sending the wrong amount.

3
 Analytical Problem

Supermarkets face a tricky problem where items go missing, hurting their

profits. This "shrinkage" can be caused by shoplifting, employee mistakes,
or even issues with suppliers. To solve this mystery, supermarkets act like
detectives, using sales data and statistical tools to find clues. It's a
complex problem, so they need different solutions like training staff or
improving counting methods, all to stop their profits from disappearing.

4
 Data Sources

Primary data collection involved personal interviews with the store

manager of Vishal Mega Mart.
Secondary data was gathered from the organization's reports and
websites to understand inventory management practices and challenges.

5
 Predictive Analysis

1.Pricing optimization: Regression analysis, a statistical

method, can be used to create pricing models that consider
factors like demand and cost, maximizing profit margins.
2.Fraudulent transaction detection: Statistical methods can
identify anomalies in transactions, helping Vishal Mega Mart
prevent financial losses from fraudulent activity.

6
 Predictive Analysis

3.Targeted promotions: Leveraging customer data to predict

buying behavior and offer personalized promotions.
4.Product mix optimization: Ensuring the right product mix for
each location.
5.Dynamic discounting: Implementing dynamic discounting
strategies to move slow-moving inventory and attract
customers.
7
 Outcome Of Analaysis
1.Inventory Shrinkage Rate Reduction: After implementing a comprehensive
inventory management system that includes RFID tagging for high-value items, a
retail chain similar to Vishal Mega Mart observed a 15% reduction in inventory
shrinkage within the first year. This system made it easier to track merchandise,
reducing loss through theft and misplacement.
2.Increased Sales Through Better Stock Management: By employing predictive
analysis tools to optimize stock levels and ensure the availability of high-demand
products, a supermarket chain experienced a 10% increase in sales. This was
attributed to fewer instances of stockouts and improved customer satisfaction, as
popular items were more readily available.

8
 Outcome Of Analaysis

3.Cost Savings Through Waste Reduction: Following the introduction of a

dynamic pricing strategy that discounts products approaching their expiration
date, a retail chain reported a 20% reduction in losses due to expired
products. This strategy not only reduced waste but also attracted bargain-
seeking customers, increasing foot traffic and sales of other items.

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 Conclusion

Supermarkets have a big mystery to solve: missing items that hurt their profits,
like a magic trick gone wrong! This is called shrinkage, and it can happen in all
sorts of ways, from sneaky shoppers to mistakes while counting stock. like special
tags to track expensive stuff and predicting what people will buy to keep shelves
stocked. But the good news is, these detective skills can really pay off! Stores
have seen way less missing stuff, happier customers who always find what they
need, and even saved money by selling things before they go bad. By using data
like a superhero superpower, supermarkets can turn this mystery into a win-win
for everyone!