3. Maven Toys Sales Analysis
Background
Maven Toys is a toy store located in Mexico. The store sells five product categories: Toys, Art & Craft, Electronics, Games, and Sports & Outdoors. Sales data from January 2017 to September 2018 indicates unstable revenue growth with an increasing trend and consistent profit growth ranging from $150k to $250k.
Problem Definition
Due to the highly competitive of the toy industry, with competition from both physical toy sellers and companies offering online gaming products, our company needs to innovate its business strategies to maintain profitability. This is particularly important considering the decline in the profit margin ratio observed in Q3 2018 compared to Q3 2017.
Objective
Find out sales trends and patterns to identify opportunities for growth and improvement
Find out which products are profitable and consider ways to maximize their potential
Find out the profitable store & location to optimize marketing strategies
Task & Actions
Result
The project identified several aspects that can be utilized to generate more profit from sales. Based on the analysis, we discovered several strategies that the company can implement to increase profitability.
By analyzing sales trends, profit optimization can be achieved during certain times, such as Thanksgiving and Christmas at the end of the year. Company can improve their sales during these periods.
There are two product categories with potential for sales optimization: Art & Craft and Toys. Increasing the number of sales transactions can drive profit growth. Implementing product bundling as a strategy can boost sales transactions by combining products with high profit margins but low transaction volumes with popular products that have high transaction volumes.
Store locations in airports and commercial areas exhibit higher profit margin ratios compared to other locations. Sales optimization efforts can be focused on these two profitable store locations.
