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BOM(Bill of Materials) Business Analyst Case Study Solution using Python, Pandas manipulation and Visualization Technique

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1. Excel Task

Task 1. Channel Performance Analysis

  • Total orders per channel.

  • Average Order Value (AOV).

  • Revenue contribution per channel.

  • Profitability by product subclass.

  • Total orders and total sales are available by channel.

  • Average Order Value (AOV) and revenue contribution are calculated.

Visialization by Ordertype & Gender

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Visualization: Sales & Profits by Channels

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Channel Performance and Profitability Analysis

1. Top-Performing Channels (Based on Sales Revenue)

  • BEWAKOOF leads with ₹3,078,073.71 in sales (23.1% of total revenue).
  • MYNTRA and its subcategories contribute significantly, with a total of over ₹6.84 million, making it the strongest marketplace collectively.

2. Underperforming Channels (Low Sales and Orders)

  • SNAPDEAL_BK_BLR_SHR and POP_BK_PROZO_BHIWANDI have the lowest sales, with ₹36,722.50 and ₹49,732.00, respectively.
  • Their low order volume and revenue share (<1%) indicate that they need either better marketing or pricing strategies.

3. Highest and Lowest AOV (Average Order Value)

  • NYKAA_FASHION_BK_KOL_SHR has the highest AOV at ₹962.81, indicating premium product sales.
  • SNAPDEAL_BK_BLR_SHR and POP_BK_PROZO_BHIWANDI have the lowest AOV (~₹420-₹456), showing a focus on budget-friendly products.

4. Profitability Insights

Highest Profit Margin (%)

  • Bewkoof channel has overall 23% profit margin highest among all.
  • MYNTRA channels have profit margins exceeding 11%, making them highly profitable.
  • NYKAA_FASHION_BK_PROZO_BHIWANDI has a 6.7% profit margin, making it a strong channel for premium products.

Lowest Profit Margin (%)

  • SNAPDEAL_BK_BLR_SHR and POP_BK_PROZO_BHIWANDI have profit margins of ~0.2%-0.3%, making them barely profitable.
  • FLIPKART and FLIPKART_BK_BLR_SHR also show weak profit margins (~2%).

Suggestions for Optimization

1. Expand Focus on High-Profit Channels:

  • Invest in Myntra and Bewakoof, which contribute over 35% of total revenue and have strong profit margins.
  • Explore higher-margin product listings on NYKAA Fashion, especially in the premium segment.

2. Improve Low-Performing Channels:

  • Consider discounted bundles or marketing efforts for Snapdeal and POP to increase order volumes.
  • Reassess pricing strategy on Flipkart, as its low profit margin (2-3%) might not justify the platform fees.
  • Optimize Pricing for Underperforming Channels:

3. Increase prices on Snapdeal and POP while maintaining competitive positioning.

4. Adjust cost structures or promotional strategies for Flipkart channels to increase profitability.

2. Python Task

BOM-Business-Analyst-Technical-Case-Study-Assignment

BOM(Bill of Materials) Business Analyst Case Study Solution using Python, Pandas manipulation and Visualization Technique

Python-Based Tasks

Customer Acquisition vs Retention

  • Objective: Assess how different marketplaces perform in acquiring and retaining customers.
  • Key Metrics:
  • Total orders.
  • Unique customers.
  • Repeat orders (Repeat Orders = Total Orders - Unique Customers).
  • Retention rate (% of repeat orders among total orders).

Deliverables:

  • A summary of retention metrics by channel.
  • Observations on which marketplaces drive customer loyalty and suggestions to improve retention.

Marketplace Efficiency: COD vs Prepaid Orders

  • Objective: Compare the operational and financial efficiency of order types (COD vs Prepaid) across marketplaces.
  • Key Metrics:
  • Total sales.
  • Total profit.
  • Average profit margin by channel and order type.

Deliverables:

  • A detailed breakdown of these metrics by channel and order type.

  • Observations on payment method efficiency and strategies to optimize COD or incentivize prepaid adoption.

    Customer Acquisition vs. Retention

  • Bewakoof has the highest repeat orders, but its retention rate is still low (~0.3%).

  • Flipkart and other marketplace channels have no repeat customers in this dataset, meaning all customers are unique.

    image

Observations

  • The low retention rate suggests that customers are not returning for repeat purchases. Suggestions:

1. Gamification & Loyalty Programs

  • Introduce tier-based rewards (Silver, Gold, Platinum) based on repeat purchases.
  • Offer "Spin & Win" discounts or reward points for every purchase to encourage repeat buying.
  • Implement a streak-based discount (e.g., 10% off if a customer orders again within 30 days).

2. Exclusive "VIP Retention Offers"

  • Provide "Early Access" to new product launches for repeat customers.
  • Offer exclusive discounts to customers who have placed multiple orders in the past 3 months.

3. Subscription Model for Repeat Buyers

  • Offer a subscription service for products frequently ordered (e.g., fashion, cosmetics, or essentials).
  • Provide a 10-15% discount for subscribing to recurring purchases.

Marketplace Efficiency (COD vs. Prepaid Orders)

  • COD orders tend to have a slightly higher average profit margin than prepaid orders.
  • Bewakoof COD orders have a 52.1% profit margin, while Prepaid is slightly lower at 48.2%.
  • Flipkart and other channels also show similar trends where COD is slightly more profitable.

image

Observations

  • Since COD is more profitable, marketplaces should optimize logistics to reduce COD-related risks (e.g., non-deliveries).

Suggestions:

1. Instant Prepaid Discounts on COD Checkouts

  • When a customer selects COD, show them a popup:
  • "Pay Online & Get ₹50 Cashback Instantly!"
  • "Prepay & Unlock Free Express Delivery!"

2. Hybrid COD-Prepaid Model

  • Allow customers to pay a small advance online and the remaining amount on delivery.
  • Example: "Pay ₹100 now & the rest on delivery"—this builds trust while reducing COD risks.

3. Gamify Prepaid Payments with Rewards

  • Every prepaid order enters the customer into a lucky draw for a big reward.
  • Example: "Prepay & Get a Chance to Win a Free Gift Every Month!"