Dillard's Lab 1-4
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Dillard’s Lab 1-4
Part One: Identify the Questions
AQ1 - Assume that Dillard’s Management is interested in improving profitability. Write three questions that could be asked to assess current profitability levels for each product and how profitability could be improved in the near future.
1.
Which products are the most/least profitable?
a.
Do they need to consider discontinuing some of the least profitable products to focus on their more profitable products?
2.
What is the profit margin for each of their products?
a.
Similar to the question above, they should analyze products with lower profit margins.
3.
How many consistent customers do they have? Of those customers, how much do they spend with Dillard’s and how often do they shop there?
AQ2 – Assume that Dillard’s Management wishes to improve its online sales and profitability on those sales. What three questions could be asked to see where Dillard’s stands on its online sales.
1.
What is the volume of interaction with their online site (i.e. how many unique visitors, number of clicks)?
2.
Which form of marketing is drawing the most customers to their online site? Should they focus more on that format or work on bettering the other forms of marketing to bring more visitors to the site?
3.
How do their online sales compare to that of their competitors such as Macy’s or Belk?
Part Two: Master the Data
Objective Questions:
OQ1- What tables and fields could address the question of the profit margin (sales price less cost) on each product (SKU) available for sale?
SKU_STORE Table
o
SKU – links to SKU on TRANSACT Table
o
COST – The price the vendors are charging for the product
o
RETAIL – the price of the product
TRANSACT Table
o
ORIG_PRICE
o
SALE_PRICE
o
TRAN_AMT
1
o
SKU – links to SKU on SKU_STORE
OQ2. If you're interested in learning which product is sold most often at each store, which tables and fields would you consider?
TRANSACT Table
o
SKU
o
TRAN_DATE
o
TRAN_TIME
o
TRAN-AMT
STORE Table
o
STORE
o
CITY
Analysis Questions: AQ1. You're trying to learn about where Dillard's stores are located to identify locations for the next additional store. Consider the STORE table. What questions could be asked about store location given data availability?
1.
What is the percentage of customers that do not have a Dillard’s location within 25 miles from them?
2.
Which division has the least number of stores?
3.
How many stores are in each city and state?
AQ2. What questions would you have regarding data fields in the SKU table that could be used to help address the cost of shipping? What additional information would be helpful to address this question? 1.
What is the average cost of shipping for each of the different pack sizes (PACKSIZE)? You would need to have actual data on the cost of shipping. Is it more beneficial to purchase items in larger pack sizes?
2.
What is the correlation/is there any correlation between the size of the item (SKU_SIZE) and the cost to ship?
2
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