Our main objective is to identify the most profitable product sub-categories across each region and the least profitable (most loss-making) product subcategories and if needed, stop selling those product subcategories in the regions where they are the least profitable.
Problem Statement
- High-Profit Categories
In this section, you want to identify the most profitable product sub-categories across each region.
- Using the raw data, find the top 3 profitable Product Sub-Categories in each region.
- Using PIVOT Tables, compare the profit for each of the top 3 profitable product subcategories by region:
- Which subcategories are the profitable in most regions?
- Sort the rows and columns by profit and apply Conditional Formatting. Does this throw up some exceptions?
- Loss Making Categories
Say you want to identify the least profitable (most loss-making) product subcategories and if needed, stop selling those product subcategories in the regions where they are the least profitable.
- Find the two most loss-making Product Sub-Categories across all regions.
- For these subcategories, identify the regions where they are the least profitable.
- Articulate your observations and identify any anomalies that you observe.
- Food for thought: People mostly buy tables and chairs together; carefully analyse the business angle of these product categories and form hypotheses to explain your observations.