Abc Catalog Company

Executive Summary

ABC Catalog Company is determined to consistently beat their profitability goals and increase the customer base. This report was commissioned to conduct analysis and build predictive models to examine the factors driving the revenue. Multi-channel catalogue company’s’ market is diverse and plentiful, so on the surface, it’s better to understand the company’s customers better and faster than anyone else to accomplish the goal.

Findings:

The analysis draws attention to the fact that in 2011, the company’s market share dropped by more than 50% than in 2010. The company’s unit market share size was the highest in 2010 and 2008 with $2.35 million and $2.29 million respectively. The company has not been consistent in generating revenue in the last three years. This is primarily due to the increase in competitors and shopping malls. Using GIS, it is seen that a part of the east coast and west coast and along the inner region of the east coast consisting of the areas of Chicago, San Diego, Los Angeles and Francisco generates more revenue and the east coast consisting of Massachusetts, Connecticut, and New Hampshire generates lowest revenues. Further drilling down the analysis, it was realized that higher revenue regions are more populated and have higher income distribution than the lower revenue regions. Since these regions are upscale with higher population and expensive lifestyle, the population includes a lot of people who cannot afford the store prices. These regions also show a lower unemployment rate with less shopping malls in the vicinity of the customers. Community Tapestry analysis shows that the customers reside in the rural bypasses. These customers might not have a car and could be difficult to travel in city traffic. The targeted customers like hunting, fishing, watch country music television, own dogs and lease trucks since they live in rural areas.

Further analysis reveals that the web channel is prominently used and is a primary factor for generating profit. But, to beat the odds, most of the high profile customers who frequently purchase popular products want to be channeled through phone. E, P and T are the popular products generating maximum product category volumes. J, C and O are the most likely returned