SuperFoodsMax Revenue Analysis

This analysis was completed as a capstone project for RMIT University short course: Business Analytics with SQL and Python.

Background:
SuperFoodsMax is a fictional mid-size grocery store chain in Australia.
The management has noted a decline of revenue in the past few years. They would like to increase the revenue by 5% in the next 2 years. To achieve this, they wanted to place focus on converting non-loyalist customers into loyalists.

Business question:
Provide insights that can support the management's plan.

Data cleaning and wrangling:
SQL was used to join three tables, which also only included dataset from 2017 onwards. Dataset from 2010 until 2016 were excluded as they were too old thus outdated.
Python - pandas, numpy and matplotlib libraries, were used for analysis and visualisation.

Findings:
1. Revenue
The company's revenue has indeed declined since 2017, but even more dramatically so in 2019. Their biggest revenue-generating commodities - beef, cheese and frozen seafood, also declined in sales in a manner consistent to that of the total revenue. COVID-19 was thought to be the culprit.
2. Customer demography
The demography metrics looked at included: household type, age band and loyalty type. The dataset did not suggest that SuperFoodsMax is preferred by one type of household over the other. This suggests that the grocer already offers a wide range of products.
However, it did suggest that the grocery chain is preferred by younger people, ranging from 19-24 years old. This is an important discovery for the management as they will be more informed on product selection for their next restocking.
It was also found that the number of 'Promiscuous' customers that shop at SuperFoodsMax is almost as many as the 'Loyalist' customers. In fact, their shopping trend and preferences are quite similar too. The high number of non-loyalists with high spending per purchase suggests that there has been a lot of leaked potential for consistent revenue.

Recommendations:
1. Engage more younger customers: Develop online shopping experience will make shopping easier and more convenient, especially amongst the more tech-savvy groups of customers.
2. Retain customers from wide-range household variety: Establish family-friendly shopping experience such as a drive through pick-up service. Customer loyalty perks should also include realistically redeemable/collectible rewards (think of that discounted $7000 cruise trip, down from $9000 offered by some grocers - who even has the money to redeem this 'reward'?)

Conclusion:
The management has a solid ground in placing their target on increasing the loyalists to improve revenue.