Marketing & Retail Analytics

Assignment
Cafe Data - 02

Neeraj Rawat
PGPDSBA Online Feb20_A
 Content
Executive Summary 3
Category Analysis 4
Top 20 Items Revenue 5
Top Selling Items by Category 6
Association Rule 7
KNIME Workflow 8
Café Data Association Rules 9
Combos 10
Recommendation 11

2 Cafe Data - Marketing & Retail Analytics Assignment

 Executive Summary
Food, Beverage and Tobacco are most ordered combos. These are contributing 91.36% Revenue

Food has the highest order quantity of 38% with 30.34% revenue share followed by beverages
with 30.97% orders but it is the 3rd valuable category with 16.8% share in total revenue.

Tobacco has the 3rd most order quantity 22.86%, but it has contributed highest revenue share
with 44.22%.

Liquor and Tobacco has 0.13% combined share in revenue, which is the least in segment.

Nirvana Hookah Single has highest revenue share of 9%.

Top selling Items are Tobacco which is not a good sign for long run sustainability

3 Cafe Data - Marketing & Retail Analytics Assignment

Category Quantity and Revenue Analysis

4 Cafe Data - Marketing & Retail Analytics Assignment

 Top 20 Items Revenue Analysis

5 Cafe Data - Marketing & Retail Analytics Assignment

 Top Selling Items by Category

6 Cafe Data - Marketing & Retail Analytics Assignment

 Association Rule
Association rule finds interesting relations between variables in large databases. It is
intended to identify strong rules discovered in databases using some measures of
interestingness.

This rule shows how frequently a item set occurs in a transaction. A typical example is Market
Based Analysis.

Market Based Analysis is one of the key techniques used by large relations to show
associations between items. It allows retailers to identify relationships between the items
that people buy together frequently.

Relevance
Identify the most popular item combos

Average menu items sold per day/week/month/year

Categories with maximum sales in a particular day/week/month/year

Identifying menu items for which price should decrease / increase / No change

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 KNIME Workflow

Excel Reader  Browse and read the data.

Group By  Data has been grouped by Bill Number and Category.

Column Rename  Renamed columns name to understand data correctly.

Cell Splitter  Split “Basket_Item_Desc” and created list for further analysis.

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 Café Data Association Rules
Minimum Support  Value taken to get the enough rules  0.0002
Support indicates how frequently the if/then relationship appears in the database.

Minimum Confidence  Value taken to get the enough rules  0.35

Confidence tells about the number of times these relationships have been found to be true.

Lift  It is telling the probability of buying “Consequent” in addition to “Items”

A lift ratio larger than 1.0 implies that the relationship between the antecedent and the
consequent is more significant than would be expected if the two sets were independent.
The larger the lift ratio, the more significant the association.

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 COMBOS
Free Great Lakes T-shirt
Min Food order Rs 5,000/
(Tax on food is 25%. T-shirt avg. cost Rs 340. Offer will increase sale.
Max cost will be 9% without tax)

Discount @15-20% Buy 2 get 1

Buttered Toast & Kheema Ghotala Hazelnut Flavour & Cappuccino
(It has the lift of 152% with frequent order) (Can be picked up frequent)

Discount @ 10-15% Buy 2 get 1

Grilled Chicken Sausages & Scrambled Egg Vanilla Ice-Cream & Great Lakes shake
(It has the lift of 128% with moderate confidence) (Can be picked up frequent)

Discount @ 5-10% Coffee Mug @ 50%

Caramel Flavour & Caffe Lette Collect 5 Espresso/Doppio/Irish Coupon
(It has the lift of 32% with highest confidence) (Core product sale can be increased)

10 Cafe Data - Marketing & Retail Analytics Assignment

Recommendation
 Liquor and Tobacco has highest combined revenue. It can be improve with “Happy Hours
offer” during weekday

 Tobacco is highest selling so we can café can offer low cast snacks items as combos offer

 As per the week 1 study, café should at look at breakfast items

 Combine merchandise items with other high selling products

 Offer merchandise as a membership or loyalty badge for customer

 Buy 1 get 1 offers on beverage items as many of them are frequently bought together

 Low price and order quantity should be eliminated from the menu

 Café can think and offer buy 1 get 1 or attractive discount of non-alcoholic drinks, also add
it with regular meal combo

11 Cafe Data - Marketing & Retail Analytics Assignment