Retail Analytics: Maximizing Sales and Efficiency

Business Creation

TABLE OF CONTENTS
Overview of proposed business plan...........................................................................................1
Rationale of the proposed business..............................................................................................2
Business value preposition...........................................................................................................2
Methodology to assess market opportunities: market size and profitability................................3
Main industry vulnerabilities and market dependencies..............................................................5
Research design to understand consumer need............................................................................5
Research results............................................................................................................................6
Main marketing aspects & innovativeness of the idea.................................................................8
Financing business & its revenue model....................................................................................10
Globalization..............................................................................................................................10
Organizing team to execute their idea........................................................................................10
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13

Overview of proposed business plan
In an ultracompetitive and turbulent retail sector, it becomes quite complicated for the
retail organizations to understand their customer desires. Lack of data here isn’t a problem
whereas information which is obtained from multiple system, region and channels is difficult to
use for meaningful results or making informed decisions. Thus, by having data analytics
software, retailers will be able to keep their large data on a computerized platform and connect
all of their operations and gain successful sales. It will also help them to keep control and
monitoring over their business activities with making informed decisions to maximize revenue
and profit during critical time. The idea of designed business plan is about using extensive data
set and performing various analytics techniques i.e. statistical, quantitative and predictive model
in order to make rationalized plans and actions.
The business will provide retail analytics tools for examining their inventory level, sales,
supply chain movement, market demand and other critical data set so as to make sound
procurement and marketing decision. Under this, data will be gathered from target customer
(small and medium sized retailers) and same will be analysed in a proper manner by using
analytical methods like cluster analysis, decision tree, descriptive statistics and predictive
modelling. On the basis of output generated, products that are needed to be kept in shelf in large
or small quantity will be determined and by doing so, sales opportunity will be increased for the
business firm. Apart from this, factors on which firm needs to focus more, will be identified by
using predicative analytics.. All these things will help retail firms in identifying right direction in
which they need to work for earning good amount of profit in business.
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Rationale of the proposed business
Figure 1 Analytical solution working in retail sector
(Source: Data analytics in the UK, 2017)
In today’s era, retailers are moving at international level to establish their presence
worldwide. They are overdriving multi-channel shopper experience in order to generate larger
revenue, gain consumer loyalty and improve their performance by generating superior insight via
advanced analytics. Over the past few decades, digitalization forced retail organization to rethink
their business strategies. Consumer preferences and behavior havebeen changed drastically with
the rising trend of e-commerce. It is therefore, now retail analytics scope has been totally shifted
from POS (point of sale) data to the analysis of large amount of informationso as to have clear
understanding of customer needs and wants. In order to stay competitive and gain success in the
competitive market, it has becomereally important for the existing retailers to use different
analytics solution to identify better product margin, personalized outreach, design a superior
product mix targeting their key customers and makingdata driven business decisions which
ensures a better return on investment. The data analytics solution provide firm really a great help
to have a clear insight towards user behavior, with which they can adopt personalized consumer-
centric strategy in all the areas of operations like marketing, pricing and others.
Business value preposition
 Maximizing efficiency
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