Stage – 01 Analyse the data available when Iuiga only sold through online channels

1. Determine the unique number of customers who bought from Iuiga in stage one.
Answer-To determine the unique number of customers who bought from Iuiga in stage one,
we can count the number of unique customer IDs in the data set. This can be achieved by
using a simple formula or a programming function, depending on the software used to
analyse the data. For example, in Excel, the formula
"=SUM(IF(FREQUENCY(A2:A100,A2:A100)>0,1))" can be used to count the unique
customer IDs in the range A2:A100. This formula uses the "FREQUENCY" and "IF"
functions to count only the unique IDs in the data set
2.     Plot the following variable over time
a)     Unit Sales
b)    Average basket size (units and dollars)
Are unit sales growing, slowing down or have plateaued? What are the trends in basket
size? Is there a threshold that you observe for the basket size, and why?
Answer-If there is a threshold for the basket size, it could indicate a pattern in customer
behaviour or a pricing strategy by Iuiga. For example, if the basket size tends to decrease at a
certain price point, it could suggest that customers are price sensitive at that point.
Understanding these to plot unit sales and average basket size over time, a line chart or time-
series plot can be used. To create the chart, the data should be organized by date, with the
unit sales and basket size (both in terms of units and dollars) being plotted as separate lines.
By observing the trends in the lines, it is possible to determine if unit sales are growing,
slowing down, or have plateaued. If unit sales are growing, the line representing unit sales
will have an upward slope. If unit sales are slowing down, the line will have a downward
slope. If unit sales have plateaued, the line will have a flat trend.
The trend in basket size can be determined by analysing the average basket size over time. To
calculate the average basket size, divide the total revenue by the total number of units sold for
a given time period. If the average basket size is increasing, it suggests that customers are
purchasing more items or higher-priced items per transaction. If the average basket size is
decreasing, it suggests that customers are purchasing fewer items or lower-priced items per
transaction.
Yes, there may be a threshold observed for the basket size, and the reason for this could be
due to a variety of factors.

Pricing: If the price of a product or the total value of the basket exceeds a certain level,
customers may be less likely to make a purchase. This threshold could be determined by a
customer's budget, perceived value of the products, or the availability of alternative products.

Product mix: The basket size may also be influenced by the mix of products in the basket.
For example, customers may be more likely to purchase multiple items if the products
complement each other, such as buying several pieces of furniture for a room.
Customer preferences: Customer preferences can also impact the basket size. For example,
customers who value convenience may be more likely to purchase multiple items in a single
transaction to minimize the number of deliveries they receive.

Delivery costs: The basket size may also be influenced by delivery costs. If the cost of
delivery increases with the size of the basket, customers may be less likely to purchase
multiple items in a single transaction.

In conclusion, understanding the threshold for basket size can help Iuiga to make informed
decisions about pricing, product offerings, and customer engagement strategies.
.
3.     Are there any additional variables that would help you understand Iuiga’s
situation better?

There are several additional variables that could help to understand Iuiga's situation better:

Customer demographics: Information about the age, gender, location, income, etc. of
Iuiga's customers could provide insight into the customer base and their preferences.

Marketing efforts: Information about the marketing channels used by Iuiga, such as email
marketing, social media advertising, and influencer partnerships, could help to determine the
effectiveness of these efforts in driving sales.

Product offerings: Information about the product categories and types of products sold by
Iuiga could provide insight into the market demand and potential areas for expansion.

Competition: Information about the competition in the market, such as the number and types
of similar online retailers, could help to understand the level of competition and potential
opportunities for differentiation.

Economic indicators: Information about macroeconomic indicators, such as GDP, inflation,

and consumer spending, could help to understand the broader economic environment and its
impact on Iuiga's business.
Customer feedback: Information about customer feedback, such as reviews, ratings, and
customer support inquiries, could provide insight into customer satisfaction and areas for
improvement.

4. If you are decision-maker at Iuiga, what you do next and Why?

As a decision-maker at Iuiga, I would recommend the following steps to be taken next:

Monitor and analyse customer behaviour: Continuously monitor and analyze the trends in
unit sales and average basket size, as well as any additional relevant data such as customer
demographics, purchase frequency, and product categories. This information can be used to
identify patterns in customer behavior, preferences, and buying habits.

Invest in customer engagement strategies: Based on the analysis of customer behavior,

develop and implement targeted customer engagement strategies such as personalized
promotions, loyalty programs, and email campaigns. This can help to drive repeat purchases
and increase the average basket size.

Optimize pricing strategies: Use data-driven insights to optimize pricing strategies and
ensure that Iuiga is offering competitive prices. This can help to increase unit sales and
improve customer satisfaction.

Expand product offerings: Consider expanding the product offerings to include

complementary products, or those that customers are likely to purchase in a single
transaction. This can help to increase the average basket size and drive additional sales.

Evaluate delivery and logistics: Evaluate the delivery and logistics processes to ensure that
they are cost-effective, efficient, and meet customer expectations. This can help to minimize
delivery costs and improve the customer experience.

The reason for taking these steps is to improve customer satisfaction, increase sales, and drive
business growth. By continually monitoring and analysing customer behaviour, Iuiga can
make informed decisions about pricing, product offerings, and customer engagement
strategies, which will help to increase customer loyalty and drive repeat purchases.