Sales Performance Analysis
I analysed sales data using Microsoft Power BI to identify key product categories and store profitability, offering insights for Disney Toys' expansion strategy.
Project summary video
Here’s a video of me walking through the entire project in less than 6 minutes:
Project links
Business problem
Disney Toys, a chain of toy stores across the United States, aims to identify which product categories contribute the most to its overall profits. Additionally, the company seeks to determine which stores are the most profitable and make informed decisions about potential store expansions.
Key Questions:
Which product categories contribute the most to overall profitability?
Which stores are the most profitable, and how can this information guide decisions on potential store expansions?
Approach
Data Cleaning: Removed duplicates and corrected errors to ensure data accuracy.
Data Structuring: Organized data into a clear model for easy analysis.
Profit Calculation: Added key measures like total profit and profit margin.
Visualization: Created an interactive dashboard to display key insights clearly, view here.
Key Insights
Product Categories Driving Profit:
The Dolls category leads in profitability with $76,986, followed by Games and Puzzles at $75,466. Playsets has the highest profit margin at 40.36%, positioning it as a key category for strategic profitability.
Additionally, Action Figures demonstrate strong profitability with a 27.31% margin, led by products such as the Black Panther Action Figure, which had an impressive 70.07% profit margin.
Top Performing Stores:
Albuquerque is the top-performing store, generating $260,928 in revenue and $72,818 in profit, with a 27.91% profit margin, making it the most profitable store overall.
Other high-performing stores include Milwaukee, Dallas, San Francisco, and San Antonio. These stores not only contribute significantly to overall profits but also maintain healthy profit margins.
Arlington has shown the highest year-over-year (YOY) revenue growth at 103.51% and profit growth at 94.4%. This indicates strong growth potential and presents opportunities for further investment and potential expansion
Recommendations
Prioritize High-Margin Categories: Given the strong profit margin in Playsets, Disney Toys should focus on expanding this category, as it offers a substantial return on investment.
Optimize Stock for Profitable Products: Products like the Black Panther Action Figure should be strategically stocked in regions with high demand to capitalize on the exceptional margins in the Action Figures category.
Expand in High-Performing Areas: Consider expanding the store presence in Albuquerque and Dallas, given their consistent profitability. New stores in these regions could leverage the brand's strong market presence.
Target Growth Markets: Invest in growing markets like Arlington, where YOY revenue growth exceeds 100%. Focus on marketing and possibly enhancing the product range to maintain and further accelerate this growth.
Explore Market Expansion Beyond Top Locations: While Albuquerque and Arlington are clear candidates for expansion, we should consider testing new markets where there is a potential unmet demand, using the successful models of these stores as a template.