Case-3: Customer segmentation analysis using the RFM method In this task, you are going to perform the following two tasks. Part-A: Customer Segmentation You will use the data, to perform customer segmentation using the RFM method. For this task, you will choose the customers from the largest market (i.e., the country with the largest sales) that you have found in a previous exploratory analysis. The implementation of the RFM method is outlined below. Monetary Value Calculation Step-1 Step-2 Step-3 For each customer find the total spending during the entire period. We will call this variable MonetaryValue. Step-2 MonetaryValue = UnitPrice × Quantity Divide the MonetaryValue into five quantiles: Q₁, Q2, Q3, Q4, Q5. Q₁gives your monetary value that is of minimum value Q₂gives your monetary value that is in the first quartile (25th percentile) Q3gives your monetary value that is in median value (50th percentile) Q4gives your monetary value that is in the third quartile (75th percentile) Q5gives your monetary value that is of maximum value. Frequency Value Calculation Step-3 Now, you calculate M (or monetary value of RFM) as follows: M = 1 if MonetaryValue ≤ Q₁ M = 2 if MonetaryValue > Q₁ & MonetaryValue ≤ Q₂ M = 3 if MonetaryValue > Q₂ & MonetaryValue ≤ Q3 M = 4 if MonetaryValue > Q3 & MonetaryValue ≤ Q3 M = 5 if MonetaryValue > Q4 Step-1 For each customer find the total number of times he/she has made purchases. We will call this variable FrequencyValue. FrequencyValue Total Number of Transactions Divide the FrequencyValue into five quantiles: Q₁, Q2, Q3, Q4, Q5. Q₁gives your frequency value that is of minimum value Q2gives your frequency value that is in the first quartile (25th percentile) Q3gives your frequency value that is in median value (50th percentile) Q4gives your frequency value that is in the third quartile (75th percentile) Q5gives your frequency value that is of maximum value. = Now, you calculate F (or frequency value of RFM) as follows: F = 1 if FrequencyValue ≤ Q₁ F = 2 if FrequencyValue > Q₁ & FrequencyValue ≤ Q₂ F = 3 if FrequencyValue > Q₂ & FrequencyValue ≤ Q3 F = 4 if FrequencyValue > Q3 & FrequencyValue ≤ Q3 F = 5 if FrequencyValue > Q4 Recency Value Calculation Step-1 Step-2 Step-3 For each customer find the most recent purchase. We operationalize this variable as the total number of days elapsed from the customers' most recent purchase from the final date of the data period. We will call this variable RecencyValue. = RecencyValue Numer of days elapsed from the most recent purchase Divide the RecencyValue into five quantiles: Q₁, Q2, Q3, Q4, Q5. Q₁gives your recency value that is of minimum value Q₂gives your recency value that is in the first quartile (25th percentile) Q3gives your recency value that is in median value (50th percentile) Q4gives your recency value that is in the third quartile (75th percentile) Q5gives your recency value that is of maximum value. Now, you calculate R (or frequency value of RFM) as follows: R = 5 if FrequencyValue ≤ Q₁ R = 4 if FrequencyValue > Q₁ & FrequencyValue ≤ Q₂ R = 3 if FrequencyValue > Q₂ & FrequencyValue ≤ Q3 R = 2 if FrequencyValue > Q3 & FrequencyValue ≤ Q3 R = 1 if FrequencyValue > Q4 Now you have 125 possible customer segments ranging from 111 to 555 (they are ranked lowest value segment to highest value segment). You have to report the following table. You have to pick the following two segments. Segment-1: This segment has the highest number of consumers Segment-2: This segment has the second-highest number of consumers Segment Monetary Value Frequency Value SD Mean Mean SD Segment-1 Segment-2 Note: SD stands for standard deviation. Recency Value Segment Segment Size Mean SD Code Briefly describe the difference between the two segments. Part-B: Experimental Design In Part-B, your task is to design an experiment so that the lower value segment's monetary value can be somewhat increased to match the higher value segment's monetary value. For this, the firm wants to send printed catalogs to the lower value segment. You can think of sending a catalog as a form of marketing intervention. The firm wants to access the effectiveness of the catalog before sending a catalog to all the customers in the lower value segment. For the experiment design (or A/B testing), you can focus on the following questions. What is a marketing intervention? What is the control group? What is the treatment group? What is the outcome of interest? How do you compare the success of the marketing intervention? Briefly describe your experimental design./n 11/26/2023 Case 2 - Progress Report 1 EXECUTIVE SUMMARY In this Marketing Analytics Progress Report, through in-depth Exploratory Data Analysis (EDA), we have identified the issues and challenges the company faces in achieving the goal of a 50% growth in online retail business in the fourth quarter of 2026. The current challenges include insufficient market insights, limited data, and weak competitive intelligence. This proposal provides data-driven solutions to enhance customer satisfaction, expand market share, and increase company value and revenue. Regarding data requirements, we emphasise the data that the company needs to collect, including quarterly sales figures, previous sales data, sales growth percentages, etc., to comprehensively assess the success of the proposed solutions. Exploratory Data Analysis involves internal and external data sources, including transaction data and social media feedback. Through Exploratory Data Analysis, we observed the leading position of the United Kingdom in terms of sales. We analysed trends in the top ten best-selling products and monthly sales volumes. The proposed solutions include introducing lower-priced products to the most successful markets, increasing promotions and advertising in European countries, and implementing culturally relevant promotional activities. These solutions address customer pain points, increase customer value, and ultimately enhance company value. In measuring the success of the solutions, we propose monitoring the sales performance of the top ten countries and products, customer expenditures, and the increase in maximum visit frequencies. Additionally, we suggest examining whether the return of products, categorised by country, is increasing or decreasing. Finally, we introduce methods for quantifying return on investment to evaluate the profitability of the proposed solutions. In summary, this proposal offers a comprehensive data-driven solution designed to enable the company to achieve its growth goals in the online retail business in the European region in the fourth quarter of 2026. It aims to enhance overall competitiveness and value. 2 TABLE OF CONTENTS Executive Summary.. Table of Contents.... Introduction............ Data Requirement What Data is Required? ...... Exploratory Data Analysis. Exploratory Data Analysis ............ Exploratory Data Analytics.... Summary of Data.......... Basic Visualization of Data Exploring Customer Experience Journey customer awareness to the purchase............ customer segmentation. Proposed Solution........... reducing customers' pain........... enhancing customer value. increasing overall company value ................. Business Strategy... Quantify return on Investment competitive advantages provided by the data analysis. the success of the proposed solution measured...... Conclusion Reference....... .........2 .............3 ............ .4 4 4 .....5 5 5 5 8 8 .9 9 9 ...10 .10 .10 .11 .11 12 3 INTRODUCTION We can address the identified issues in the marketing analytics proposal through exploratory data analysis (EDA). EDA is a method for in-depth data exploration that can reveal hidden structures and patterns within the data. EDA is crucial for the company as it can help us identify trends that may not be readily noticeable. Through this report, we will analyse the data, exploratory data analysis, and corresponding solutions needed for the company to achieve a 50% growth in online retail business in the European region in the fourth quarter of 2026. The company is currently facing challenges such as insufficient market insights, limited data, and weak competitive intelligence, and we need to assess market opportunities through data to address these issues. By analysing the company's sales big data and monitoring customer expenditures and engagement, we aim to comprehensively evaluate the solutions' success, enhancing customer satisfaction, expanding market share, and ultimately increasing the overall value and revenue of the company. DATA REQUIREMENT The company aims to achieve a 50% growth in online retail sales in the European region by the fourth quarter of 2026. However, the company has been unable to attain the desired increase in online retail sales, primarily due to insufficient market insights, limited data, weak competitive intelligence, and a lack of trend visualization. Several obstacles have constrained the company's business growth, including limited regional product supply, language barriers, high transportation costs, payment security issues, and inadequate customer support. Therefore, we need data to assess market insights. More market insights can be observed from the available raw data. Data can be collected by country, product, and non-returned products to evaluate sales figures. WHAT DATA IS REQUIRED? We need to analyse whether the company's online retail business can achieve 50% growth in the fourth quarter of 2026. The required data includes quarterly sales figures. Additionally, it is necessary to obtain previous sales data and a sales growth percentage, which will aid in predicting the sales situation for the fourth quarter. Furthermore, data regarding the targets set by the company for the fourth quarter is needed to compare with the previously set goals, allowing for a comparison of the quarterly sales growth percentage (Indeed.com 2023). EXPLORATORY DATA ANALYSIS The data sources are divided into internal data sources and external data sources. The company's internal data sources include transaction data, such as customer purchases and cases of customer returns. Additionally, the company must collect data on sales growth percentages categorized by country. External data sources encompass customer feedback on various social media platforms like Facebook, Twitter, and LinkedIn (FutureLearn 2013). 4 EXPLORATORY DATA ANALYSIS Exploratory Data Analysis (EDA) helps identify general patterns in the data. EDA involves using visual methods such as histograms, pie charts, and various other graphical representations like bar charts, line graphs, and scatter plots to examine the data distribution (USEPA 2015). Analysing these charts and graphs aids in evaluating whether there are opportunities for achieving a 50% sales growth in the fourth quarter of 2026. EXPLORATORY DATA ANALYTICS In data analysis, various exploratory data techniques are employed. These include using pie charts to assess sales by country, employing bar charts and histograms to evaluate the top- selling countries and products, and using pie charts to represent the distribution of non- returned products by country visually. The company provides data for 4,373 customers of an online retail business from 1 December 2010 to 9 December 2011, totalling 541,909 observations and featuring eight variables, including quarter sales growth data categorized by country. This aids in evaluating the disparities in previous quarters. Sales of the company's product categories also require quarterly sales data to determine the quarterly sales growth for each product. This analysis contributes to identifying which product sales are most crucial to achieving the 50% sales goal in the fourth quarter while recognizing sales trends and seasonality in exploratory data. SUMMARY OF DATA Based on the sales data categorized by country, the United Kingdom generated the highest sales. However, we need to find out in which quarter the company achieved the highest sales in the European region, potentially leading to a flaw in market analysis. As for the top ten best-selling products categorized by item, the data does not specify the quarters and countries they represent. On the other hand, we have collected monthly sales volume data, revealing an increasing trend from September to November, with the highest sales volume recorded in November. However, this data needs to provide more detailed information, such as the best-selling products and the countries with the highest sales volumes. Furthermore, we can examine return data based on countries, coupled with the analysis of the top ten selling countries, to understand if countries with higher sales volume have a higher return rate. In conclusion, while the collected data reflects surface-level information about the company, we can still consider these data points essential for further market data collection and analysis. BASIC VISUALIZATION OF DATA To visualize the data, the company can employ various visualization tools, such as pie charts, bar charts, histograms, bubble charts, scatter plots, and line graphs, to present the sales situation categorized by quarter, country, and product (lbm.com 2022). 5/n Case 1 - Proposal 1 EXECUTIVE SUMMARY This marketing analysis outlines a strategic approach for achieving a 50% increase in sales for our online retail business in Europe by Q4 2026. Recognizing the diverse European market, our business objectives emphasize the importance of data-driven decisions, industry context, and stakeholder collaboration. The identified business objective is integral for the company's expansion in specific European markets, contributing to overall revenue growth, enhanced competitive positioning, and improved risk resilience. Stakeholders, including shareholders, executives, employees, customers, suppliers, competitors, and regulatory bodies, play crucial roles in achieving this objective. Enablers and restrictions have been identified, ranging from growth potential and digital sales channels to risks like exchange rate fluctuations and cultural differences. Success measurement involves monitoring market share, customer satisfaction, and financial performance. Researching the business environment uncovered customer problems, alternative solutions, key competitors, and disruptive factors. The problem statement highlights challenges in market insights, data limitations, and weak trend visualization, affecting regional product supply, language barriers, transportation costs, payment security, and customer support. A robust set of software tools and analysis methods have been proposed to address these challenges, including CRM, data analysis platforms, e-commerce analytics, social listening tools, and translation services. Analysis methods encompass statistical analysis, market segmentation, competitive analysis, time series analysis, and machine learning algorithms. A basic experiment design combines A/B testing and comparative analysis to optimize strategies for sales growth. Independent variables include customized ads, localized SEO, culturally relevant products, and dynamic pricing. The ideal A/B test design involves random assignment, defined time frames, key performance indicators, user feedback, and sales trend analysis. Strategies to solve the problem emphasize innovative marketing analytics tools, creativity, and innovation. Personalized customer journeys, dynamic content generation, AR technology, and a customer feedback loop are proposed strategies to enhance business value. Implementation of these strategies aims to attract more customers, boost sales, differentiate from competitors, and sustain long-term competitive advantages. In conclusion, the comprehensive steps outlined in this analysis provide a roadmap for achieving sales growth goals in the challenging but lucrative European market. 2 TABLE OF CONTENTS Executive Summary... Table of Contents.... Introduction.......... .......... Defining Business Objectives and Context.... Business Objective................ Importance......... Stakeholders......... enablers and restrictions success measurement. Researching the Business Environment. Customers' Problems........ alternative solutions. competitiors ......... disruptive factors.. Problems Definition Problem Statement.. Software tools and methods .. Software and tools use to analyse the data.. Analytical Methods ................. Basic Experiment Design Independent varible How to test... Ideal A/B test...... Strategies to solve the problem........ Marketing Analytics tools Strategies for creativity and innovation impact on business value. Conclusion Reference........ ........... = ........... = = ......... ........ ...2 .3 .4 4 4 4 5 .....5 5 6 6 6 .6 6 .7 7 7 8 8 .8 8 9 .9 ...10 3 INTRODUCTION Marketing analysis is vital for businesses entering the European market, fostering an understanding of consumer behaviour and trends (Teece, 2006). This informs effective strategies, cost reduction, and competitive responses. The diverse European market requires thorough data exploration for consumer insights, cost optimization, and competitive navigation. Successful expansion relies on data- driven decisions, incorporating collection, analysis, and insights extraction, considering industry context and acknowledging data opportunities and limitations. DEFINING BUSINESS OBJECTIVES AND CONTEXT Different Key Performance Indicators reflect the targeted growth in sales and market share within the specified region, signifying the achievement of business objectives (Kaplan & Norton, 2001). BUSINESS OBJECTIVE Our company's objective is to achieve a 50% increase in sales for our online retail business in Europe by Q4 in 2026. IMPORTANCE This objective is crucial for the company's expansion in specific European markets. We can achieve the following key objectives: ● Increasing sales in these markets will boost the company's overall revenue, improving profitability and financial stability (Porter, 1980). It helps consolidate our competitive position in these regions, expand market share, enhance brand awareness, and attract more potential customers (Ansoff, 1957). ● Diversifying sales locations reduces reliance on specific markets, lowering the impact of market volatility on the company. This aids in improving sustainability and risk resilience (Porter, 1980). STAKEHOLDERS Achieving the business objective requires coordinated efforts from various internal teams within the company. Additionally, collaboration with external partners may be necessary to ensure compliance and market understanding. 1. Shareholders prioritize sales growth and profitability for their investment value. 2. CEOS, CFOs, and CMOS strive for sales goals aligned with strategic objectives and performance assessments. 3. Employee work performance and bonuses may be linked to sales achievements. 4. Product quality, availability, and pricing influence customer perception of sales growth. 5. Suppliers are impacted by sales growth, potentially requiring increased supplies or services. 6. Competitors and market participants monitor sales performance for market share and positioning. 7. Government and regulatory bodies focus on sales goals for compliance and taxation. 8. Stakeholders concerned with social and environmental aspects assess the impact of sales growth on society and the environment, including sustainability and social responsibility. 4 ENABLERS AND RESTRICTIONS Based on this business objective, here are the enabling factors and restricting factors our company may face: Enablers ● ● Restrictions Significant growth potential and demand in target markets contribute to achieving goals. Extensive digital sales channels as an online retailer facilitate regional expansion. Effective market research and data analysis enhance market understanding and strategy formulation. Investment in market expansion, promotions, and adaptability is essential for success. Risks like exchange rate fluctuations and political instability may hinder sales growth. Especially in international sales, logistics and supply chain issues can limit growth. Cultural and regulatory differences across countries increase operational complexity. ● Achieving sales growth may require additional resources, impacting goal attainment. ● SUCCESS MEASUREMENT The success of achieving the business objective can be assessed through the following measures: 1. 2. Observing whether our market share in European markets has increased. An expanded market share would be a sign of success. Customer satisfaction and feedback are crucial for determining success. Positive customer feedback and an increase in repeat customers indicate the achievement of the sales growth target. 3. The financial performance of the company is also a key indicator. If sales growth leads to an overall increase in revenue, profit margins, and shareholder value, then we can consider the objective successful. RESEARCHING THE BUSINESS ENVIRONMENT Understanding and addressing customer problems, evaluating available alternatives, being aware of competitors' strategies, and mitigating disruptive factors are crucial for a company to thrive and achieve targeted sales growth in the specified European market. CUSTOMERS' PROBLEMS Customers often face various challenges, including: 1. Customers often see high transportation costs as a barrier to international orders (Wang & Li, 2023). 2. Lengthy return processes may discourage purchases. 3. Product restrictions based on regional preferences may limit customer choices. 4. Language and cultural differences can impact the shopping experience and product relevance. 5. Inadequate customer support or poor localization can lead to satisfaction or clarity. 5/nOverview Assessment 3 is a culmination of your work in the previous two assessments, as well an opportunity to showcase how your solution will benefit the business. In this assessment, you are required to show your understanding of business problems, your skills of data analysis, and your ability to draw marketing insights from the data analysis. Together, these three skills will demonstrate how you can add value to the business. You are required to submit a Project Report to the CEO of your business that critically analyses the marketing problem that you have identified and have worked on solving in Assessment 1 and 2. It will include recommendations (that are driven by the analysis of the data) that will improve business processes. You will also deliver a sales pitch based on the strategy that you have come up with and detail how it will improve the business's bottom line. Assessment Details You are required to submit a project report in the form of a marketing plan and to also deliver a sales pitch communicating your strategy to improve the firm's bottom line. Report requirements (Word count: Report 1500 words + Pitch 500 words) Organise your Project Report into the following sections. (Note: You may copy the relevant sections/details from your previous assessments, but make sure you have fully developed those sections to be delivered in this final assessment.) Section-1: Defining Business Objective and Context Section-2: Describing the Business Environment Section-3: Describing the Business Problem Section-4: Describing your Solution and Strategy including experimental design Section-5: Describing the Impact of your Solution and Strategy Section-6: Describing the Timeline of Implementation Plan Section-7: Describing the Limitations Section-8: Conclusion

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Case-3: Customer segmentation analysis using the RFM method In this task, you are going to perform the following two tasks. Part-A: Customer Segmentation You will use the data, to perform customer segmentation using the RFM method. For this task, you will choose the customers from the largest market (i.e., the country