Sales optimization management in R-city mall

Use of statistics in solving real business issues Group members : Sneh Karamchandani(25) Ashwini kumar (28) Nirriti s.s. (35) Pratik Shah (47) Mukull Ovalkar (59) Abhishek Yadav (60)

Observation 

Welcome to R City! The city with a fresh experience for the true shopper 
With a blend of the best in shopping, entertainment and food  Approximately around 5000 people visit the mall every day

OBJECTIVE OF THE RESEARCH Perform a continuous probability analysis to determine the customers· visits and their choice of buying ,during the time zone of 2pm-5pm and 7pm-9pm and use the analysis for the sales optimization.

DETERMINATION OF SAMPLE SIZE
Sample 1 Time zone- 2pm-5pm No.of observations ² 100 ´ Sample 2 ´ Time zone- 7pm-9pm ´ No. of observations- 200
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DESCRIPTION & CALCULATIONS
DATA ²The following information provides the number of footfalls during the two time zones. The data is categorized into 3 different zones of the R-city mall. ´ Determine the probability that people entering the mall between 1)2-5pm 2)7-9 pm come only for entertainment purpose?
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TYPE TIME ZONE

GROCERY SHOPPING (G)
70

ENTERTAIN MENT SHOPPING (E)
20

APPAREL SHOPPING (A)
10

ROW TOTAL

TIME 2-5pm (T1) TIME 7-9pm (T2) COLUMN TOTAL

100

30

110

60

200

100

130

70

300

CALCULATIONS
P(T1) = 100/300 = 0.33 ´ P(T2) = 200/300 = 0.67 CONDITIONAL PROBABILITY TABLE
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G/T T1 T2 0.7 0.15 E/T 0.2 0.55 A/T 0.1 0.3

JOINT PROBABILITY TABLE
p(G/T)*p(T) T1 T2 0.231 0.1005 P(E/T)*p(T) 0.066 0.3685 p(A/T)*p(T) 0.033 0.201

TREE DIAGRAM

CALCULATIONS
BAYES·S LAW = Condition1 -Time zone (T1)2-5pm P(E/T1) P(T1) P(T1/E) = P(E/T1)P(T1) + P(E/T2)P(T2) 0.2* 0.33 0.2*0.33 + 0.55*0.67 P(T1/E)= 0.1519 =15.19% BAYES·S LAW = Condition2 -Time zone (T2) 7-9pm P(T2/E) = P(E/T2) P(T2) P(E/T1)P(T1) + P(E/T2)P(T2) 0.55* 0.67 0.2*0.33 + 0.55*0.67 P(T1/E)= 0.848 = 84.8%

CONCLUSION´

The probability that people entering the mall between 2-5pm , come only for entertainment purpose is 15.19% The probability that people entering the mall between 7-9pm , come only for entertainment purpose is 84.8%

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INFERENCE
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As people entering mall between 2-5 pm are concentrating more on grocery than any other entertainment purpose. So the mall management should concentrate to promote these products in afternoon while people entering mall between 5-7 pm mainly come for the entertainment purpose so the management should concentrate entertainment products and food items etc.in the evening This will ultimately optimize the net sales of the mall

WEAKNESSES IN SAMPLES
Not everyone in the mall come for the shopping or entertainment purpose ´ The observations conducted are not exact representation of the population ´ During the festival seasons the variation in the number of customers is very high
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Thank You

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