Case Study

Client:

SKECHERS

 

Challenge:

A business needed to determine which of its promotional campaigns were the most effective. The goal was to analyze sales performance, market size, and store demographics to identify key drivers of success and optimize future marketing spend.

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Solution:

We conducted a comprehensive data analysis using R Studio, utilizing the ggplot2, dplyr, and readxl libraries to evaluate the performance of three different promotions. We created tables and visualizations to summarize sales per promotion, analyze market size distribution, and assess the role of store age in promotional success. Finally, we used statistical tests to compare the promotions and determine which ones were most effective.

 

Results & Insights:

The analysis provided clear, data-backed insights that directly benefit the business.

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• Sales Performance: Promo 1 generated the highest mean sales, followed by Promo 3, while Promo 2 had the lowest. Although Promo 1 and Promo 3 had similar mean sales, a statistical t-test revealed the difference in performance between them was random, suggesting both are highly effective. In contrast, the t-test showed that Promo 1's superior performance over Promo 2 was not random, indicating a significant difference in effectiveness.

• Market Distribution: The market size distribution was found to be very similar across all three promotions, meaning that promotions were not inherently skewed toward a certain market size.

• Store Demographics: The analysis revealed that most stores were one year old. By grouping promotions by store age, we can see if store maturity plays a role in a promotion's success. This is a critical insight for targeting future campaigns.

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Conclusion:

This project successfully identified which promotions were most effective and why. The analysis provides actionable insights that can be applied to future marketing strategies to maximize ROI. The business can confidently allocate more resources to Promo 1 and Promo 3, as they were proven to be the most effective. The insight that market size is not a significant factor allows the business to focus on other variables, like store age, for more precise targeting. By leveraging these data-driven findings, the client can optimize promotional budgets, improve campaign performance, and drive revenue growth.