1

FACIAL TISSUE INDUSTRYData Analysis, Visualizations & Interpretation

2

Agenda1. Summary2. Project Objective3. Exploratory Analysis4. Regression 5. RFM Analysis6. Recommendations

3

Project ObjectiveBased on the initial exploratory data analysis, we formed the following business questions:

1. What are the major drivers for facial tissue sales? Is there a seasonal pattern to sales?

2. To what extent does price drive facial tissue sales? To what extent do price discounts drive facial tissue sales? What is the effectiveness of in-store promotions such as features and displays?

3. Are customers price elastic or inelastic?4. What is the competitive landscape of the facial tissues category? How do

competitor price and promotions affect other brands?5. What kinds of people are likely to buy a certain facial tissues brand?6. Which customers to target with promotional materials to ensure maximum

returns?

4

Dollar and units trend over 5 years show peak sales during the end of the year. Trend also shows a clear seasonal patter

Sales for Facial Tissues have remained constant over the past 5 years

Exploratory Analysis

5

Total facial tissue sales per state – map view

California and New York are the highest consumers

Exploratory Analysis

6

Family size of two generates maximum value for Facial Tissues

Unit Sales by Brand and Family

‘1 = 1 person in household’, ‘2 = 2 people in household’, ‘3 = 3 people in household’, ‘4 = 4 people in household’, ‘5 = 5 people in household’, ‘6 = 6 people in household’

Exploratory Analysis

7

Age group of 65+ years generates maximum value for Facial Tissues

Unit Sales by Age Group‘1 = 18-24’, ‘2 = 25-34’, ‘3 = 35-44’, ‘4 = 45-54’, ‘5 = 55-64’ and ‘6 = 65+’

Exploratory Analysis

8

Retired people generate maximum value for Facial Tissues

‘1 = ‘Professional or Technical’, ‘2 = Manager’, ‘3 = Sales’, ‘4 = Clerical’, ‘5 = Craftsman’, ‘6 = Operative’, ‘7 = Laborer’, ‘8 = Cleaning’, ‘9 = Private HH Worker’, ‘10 = Retired’

Unit Sales by Profession

Exploratory Analysis

9

Units sold by household income

Panelists earning between $25,000 - $30,000 generate maximum value for Facial Tissues

Exploratory Analysis

10

People without pets generate maximum value for Facial Tissues

Unit sales (all brands) by number of dogs in a household

‘0= No dogs’,’1=One dog’,’2= Two dogs’, ’3= Three dogs, ’4= Four dogs, ’5= Five dogs, ’6= Six dogs

Exploratory Analysis

11

2 Observations : • Kimberly Clark promotion of price reduction sees a peak in the year-end and early

January time period• P&G promotions peak in July when price reduction promotions are the lowest for

Kimberly Clark

Exploratory Analysis

We see a seasonal promotional trends for Kimberly Clark and P&G

12

• P&G have aggressively promoting in the month of March• Promotion pattern coincides with Mother’s day.

Exploratory Analysis

P&G is gradually shifting their promotional season from July to March

13

Combination of promotional activities has higher impact on sales as compared to individual

Regression

• Regression Model with sales ($) as dependent variable and following types of explanatory variables:• Average price for all brands• Price Reduction promotion for all brands• Display promotion for all brands• Feature promotion for all brands

• 60.99% of variation in sales can be explained by the model• Combination of price reduction and either display or feature

has a greater impact on sales as compared to individual promotions

14

Some of the promotional activities by competitors have a positive impact on our sales

Regression

• Promotions by Marcal Paper have a positive impact on our sales, specifically minor display and combination of price reduction and feature “C” promotion

• Combination of price reduction and minor display promotions by Kimberly Clark and Private Label also have a positive impact on sales

• Contradictory to our initial hypothesis, from the data available and the variables significant in the model, none of the competitors’ promotional activities have an inverse impact on our sales

15

Price Sensitivity: Putting Facial Tissues Price Response Into Perspective

Highly Elastic Elastic Moderately Elastic Inelastic Highly Inelastic

-1.7 -1.2 -1.0 -0.5

Price Inelastic/InsensitivePric

e El

astic

/Sen

sitive

Men’s Fragrances

-0.3

Super Premium Alcohol

-0.40

Breath Mints -0.50

Adult Tooth

Brushes-0.61

Premium Skin Care

-0.75

Gum-1.10

Specialty Sports Drink-1.18

Premium Chocolate

-1.20

Premium Ice Cream Bars

-1.30

Chocolate/Candy/Gum

-1.39

Imported Beer-2.2

PuffsGrocery-1.806

KleenexGrocery-1.65

Regression

16RFM Analysis

RFM Output Explained and Monetization Map

17

For P&G• 4,219 unique customers - 28K number of transaction• 845 out of 4220 unique customers have been identified as loyal• These 20% customer gave us 46.36 % of our total sales

For Kimberly Clark• 6,435 unique customers - 84K number of transaction • 1,339 out of 6435 unique customers have been identified as loyal• These 20% customer gave them 50.84 % of their total sales

A total of 205 common customers have a highest RFM score for both the companies. These customers are of special interest to us.

RFM Analysis

Comparison of Loyal Customers of P&G and Kimberly Clark

18

We recommend that P&G should take following course of actions• A price reduction combined with just one line of feature ad should be

sufficient enough catapult the sales• Promotions should be kept minimum in the stores and weeks Marcal Papers

sets their promotional activities and do promotions in the other stores and weeks so as to maintain consistency in the sales across stores and weeks

• The top 640 P&G exclusive customers should be targeted with promotional offers, conducting special email marketing and should rewarded for their loyalty

• Customers with ‘High Recency, Low Frequency and Low Monetary’- This segment includes P&G’s newest customers. P&G should tie up with stores (mass, grocery and drug stores) give them a good first impression of the company with welcome offers, product-usage tips or other information that newbies would find helpful

• Customers with Recency and Frequency score of 3 & 4 with high monetization score may be bulk purchasers and should be targeted with wholesale discount coupons

Recommendations