Analysis of Marketing Analytics for Cantaso Ltd Business

This report presents a comprehensive marketing analytics analysis of Cantaso Ltd, a retail company. It investigates profitable and less profitable product lines, revealing North America as the most profitable region. The report examines seasonality patterns across different channels and product lines, highlighting fluctuations in profit based on the quarter and geographic location. Furthermore, it forecasts sales levels and profit margins over a three-year period for various product lines and distribution channels, predicting growth in Europe and China. The analysis includes performance estimations and provides recommendations, such as focusing on online and store channels and managing workforce effectively. The study uses descriptive statistics, data exploration, and forecasting tools to identify key insights and support strategic decision-making for Cantaso Ltd.

MARKETING ANALYTICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1 Profitable and less profitable product lines in business.......................................................1
2 Difference in seasonality pattern across different channels and product lines....................2
3 Forecast of sales level and profit margin for three year time period for product line and
channel....................................................................................................................................5
4 Estimation of performance for three years and recommendation.....................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14

INTRODUCTION
Analytics is the one of growing domain across the globe. Today industry is valued at billion of amount and number of firms
entering in to this industry is increasing at rapid rate. There are number of reasons due to which analytics industry grow at such huge
rate. One of them is that there are number of factors that firm are facing in its business. By using analytic tools, reasons due to which
problem comes in existence are identified and solved. In the current research report, marketing related data is analysed by using varied
tools. Regression tool is applied on data set in order to explore relationship between different variables and to identify solution of the
problem. Apart from this, forecasting is also done for sales and profit across different channel of distribution and product lines. At end
of the report, conclusion section is prepared and on that basis recommendation is made. It can be said that analytics is the one of the
important tool that is used to analyse data set and to identify solution of the business problem.
1 Profitable and less profitable product lines in business
Cantaso Ltd is the one of the well-known company across the globe. Currently, firm is operating its business in the retail sector
and is offering wide variety of products and services to the customers. In order to identify most profitable and loss making regions
descriptive statistics method and data exploration method is used. Under data exploration, some computations are done and in
descriptive analysis mean and standard deviation is computed for each variable. On this basis, regions that are highly profitable and
loss making are identified. In the report, data of mentioned firm is analysed by using analytic tool. Main objective is to identify
product lines that are highly and less profitable for the business firm. On analysis of data it is identified that most profitable regions for
the firm are North America where profit of 4150637381 is made followed by Europe and China where sales of 1100780705 and
931195377 is made. In areas where low amount of profit earned are Turkmenistan where profit of only 19428 is earned followed by
Switzerland and Slovenia where profit of 11667273 and 11869520 is earned. It can be said that there is huge difference between profit
amounts that is earned on profitable less profitable nations. North America is the region from where huge amount of sale is made.
Mentioned region accounts about more than 70% of overall profit of the business firm. thus, it need to focus more on North America,
Europe and China to earn good amount of profit in its business. China is another market from where good amount of profit can be
1

earned. As per facts, in the mentioned region profit of about 931195377 is earned. There is huge population of mentioned region and
consumption power of relevant people is increasing consistently. Thus, China can be attractive market for the firm.
It is also very important to evaluate the standard deviation in profitability of nations to measure risk that is associated with
relevant region. It can be seen that standard deviation in case of China is very high in comparison to other markets and profitability in
the mentioned region is increasing consistently which reflect that profit in Chinese market for the firm is increasing rapidly in
comparison to developed markets. This, reflects that it is the best time for making investment in China. North America however is the
one of main source of earning of good amount of profit in business but there are few nations where less amount of profit is earned but
same increase at fast pace and one of them is Pakistan where profit of 36269422 is earned but its standard deviation is 1094675.90
which is lower than same of North America and Europe STDEV which is 125264671 and 33222162 respectively.
Canada and Japan are the other nations on which company can focus to expand its market. Profit earned on Canadian and
Japanese market is 128453817 and 133500470. Standard deviation of both markets is 3876887 and 4029045. It can be observed that
standard deviation of Japan is higher than other markets but less then North America and Europe. Thus, Japan can be considered as
one of lucrative area for doing business. In case of Canada, also standard deviation is high which are 3876887 that is less then North
America, Europe, China and Japan. It can be said that Canada apart from Japan is the location where good amount of profit can be
gained.
2 Difference in seasonality pattern across different channels and product lines
Seasonality is the factor that has huge influence on the firm profitability. It can be seen from the chart that is in appendix that
there is difference in seasonality pattern across different quarters of 2007, 2008 and 2009. It can be observed that due to seasonality
factor the firm in the North America and Europe market bears heavy amount of loss in Q1 2007. In case of Australia, low profit is
gained and across all nations, same level of profit is earned. It can be said that there is similarity in seasonal pattern across the nations
but in case of North America and Europe there is difference in terms of fluctuation that is observed in profit earning in Q1 of 2007 and
in further quarters in comparison to other nations. In Q1 of 2008 different trend is observed and suddenly huge plunge is observed in
2

profitability of North America and Europe market. Again, same trend is observed across all nations there is stability in earning of
profit but in case of North America, Europe and Australia, China and India there are different trends in terms of fluctuation in gained
profit. Overall, in these nations, profit is moving in same direction but rate of change in profit amount in comparison to previous
quarter profit amount vary. It can be said that there is difference in seasonality pattern across these mentioned nations in terms of
earning of profit.
3

It can be said on the basis of above chart that profit amount earned plunged by huge raneg from Q1 of 2008 to last quarter of
2008 in case of North America, Europe and Chinese market in comparison to other nations but increasing and decreasing trend was
same across all these countries. It can be said that there is high degree of similarity in seasonality pattern across regions but there is
devuation in terms of earning of profit.
4

Image given above reflect that in case of store profit is fluctuating at rapid pace. Seasonality factor is same across all channels of
distribution. Inverse trend in terms of earning of profit is not observed across all channels of distribution but rate of deviation in profit
amount vary across these channels of distribution.
3 Forecast of sales level and profit margin for three year time period for product line and channel
In retail business it is very important to identify number of factors that have heavy impact on sales performance of the business
firm. Seasonality is the one of the common factors whose impact is observed on sales in retail business. Thus, it is very important to
identify seasonal factors or months in which sales decline significantly so that according to situation changes can be made in the
inventory. On analysis of figures, it can be observed that in second quarter for upcoming three years sales will decline. This is one of
the seasonal factor that lead to decline in sales.
5

Projected profit across regions
It is predicted that profit will increast at very huge rate in case of Europe and China market. Profit will remain flat in North
America market. In case of Australia and Russia sales growth will low for upcoming quarters of 2010,2011 and 2012.
Profit forecast across channels
6

It can be seen from the chart that higher amount of profit will be earned in all quarters for years 2010,2011 and 2012 in case of stores
relative to online and other channel of distribution. At second number good amount of profit is expected to be earned in case of online
channel of distribution. It can be said that store and online will be channel of distribution through which there is probability of earning
of large amount of profit in business.
Sales across different regions
7

It is predicted that sales in North America will increase at sharp rate followed by Iran and Japan. In other nations that are revealed in
chart sales growth rate will remain moderate or low.
8

It is predicted that sales will grow consistently in the nations Pakistan, Syria, Thailand and South Korea. Whereas, in other
nations that are displayed in chart sales will increase at moderate or at slow rate.
Sales across different channel of distribution
9

It is predicted that company must focus on its stores and online channel of distribution to make maximum amount of sales in the
business relative to other channels.
4 Estimation of performance for three years and recommendation
In order to estimate the performance of the specific business it is very important to understand the market. Firm is currently
operating in retail sector and is offering electronic products. Currently, economic conditions of the nations are uncertain and in future
10