Business Intelligence Project

Data Analysis – Using Tableau

Of

Coffee Chain

Submitted to:

Dr. Srinarayan Sharma

(Professor;IT & Systems, IIM Kashipur)

Submission By:

Group 13

Blessen Mathai PGP13082

Gaurav Singh PGP13024

Sajal Luthra PGP13048

2

Samarjyoti Das PGP13113

Table of Contents Coffee Business ....................................................................................................................................................... 3

Product Portfolio .................................................................................................................................................... 3

Product Sales .......................................................................................................................................................... 5

Margin .................................................................................................................................................................... 7

Product Profit ......................................................................................................................................................... 8

Company Strategy .................................................................................................................................................. 8

Conclusion & Recommendations .......................................................................................................................... 13

3

Coffee Business The coffee chain is present in various parts of Unites States of America and spread densely in

the states like Florida, California and Texas while moderately in the states of Colorado, Utah

and others.

Figure 1: Geographical Spread of Coffee Centers

Product Portfolio The product Portfolio of the Coffee Chain is basically divided in 4 product types, namely,

Coffee, Espresso, Herbal Tea and Tea. Coffee and Espresso are part of the product line of

Beans while Herbal Tea and Tea fall in the Leaves Product line. In all, there are 13 products

served by the firm.

4

Figure 2: Product Portfolio

‘Beans’ are a larger product line for the coffee chain compared to ‘Leaves’.

5

Product Sales To determine the underperforming products, we first need to analyze which Product have

less Sales as compared to the other products in the portfolio. The below bar chart help us in

providing a first glance of the sales of the various products.

Figure 3: Sales of 13 products

Looking at the broad sales generated by the 13 products, we can say that Amaretto in Coffee

category, Caffe Latte and Regular Espresso in Espresso Category, Mint in Herbal Tea category

and Green Tea in Tea category are underperforming. But to make a more detailed analysis we

also need to understand which products are generating the required profits as sales is not a

proper criteria for underperforming products.

From Figure 4, we can say that not only Amaretto in Coffee category, Caffe Latte and Regular

Espresso in Espresso Category, Mint in Herbal Tea category and Green Tea in Tea category

but also Decaf Espresso in the Espresso Category is generating less Profits in spite of the high

amount of Sales it generates.

6

Figure 4: Sales, COGS, Marketing and Profit of Products

7

Margin

8

Product Profit

Company Strategy The company should focus on profit generating products instead of ensuring that all products

are sold in all the markets. It is a crucial factor for the company to understand that coffee

drinkers do not have more than one type of beverage at one point of time.

Thus, it is important to determine which products are generating loss in which area and

proper actions for removal of that particular product from that geographical area should be

undertaken. Figure 5 helps us analyze the same.

9

Figure 5: Area-wise Profits of products

The company should discontinue the sales of few products in areas where it is generating

no/low profits.

Fig 6:

10

As per the above graph, they should discontinue sales of Caffe Mocha in New York as it is

generating losses of the order of $6,354 in New York. Similarly, it should discontinue:

Amaretto in Oregon and California

Decaf Irish Cream in New Mexico and California

Caffe Latte in Louisiana and New Mexico

Caffe Mocha in Massachusetts, Connecticut and New York

Regular Espresso in New Hampshire

Chamomile in Missouri

Lemon Herbal Tea in Missouri and Colorado

Mint Herbal Tea in Utah and New York

Darjeeling Tea in Utah

Earl Grey Tea in Missouri

Green Tea in Nevada, Utah and Missouri

11

Trend Analysis of profit vs sales

Fig 7: Comparing the trend of sales in different Markets

12

In figure 7 we plotted sales Vs profit for all the markets and products. We can observe that

there are certain deviation from normal trend line of the markets with good profit. The red

marked product and area shows downward trend

Fig 8: Trend lines for South market

In fig: 8 we have analyzed further the individual area of deviated trend which clearly show

deviation from other markets

13

Conclusion & Recommendations

With the onset of autumn season, consumption of leave related products sees a decline

14

To analyze which of the 6 underperforming products should be discontinued, we made a

dashboard for comparing the marketing spend on the products along with the margin on the

products.

15

Figure 7: Comparing Marketing Spend and Margin

By analyzing the above graphs, we can conclude that Green Tea in spite of high spend on

Marketing is not generating the required returns in terms of Profits as it a low margin product.

Hence, Green Tea should definitely be dropped from the Product Portfolio of Nevada, Utah &

Missouri.

Also, reiterating our earlier findings, we recommend the company to focus on the following

products in the given regions:

Amaretto in Oregon and California

Decaf Irish Cream in New Mexico and California

Caffe Latte in Louisiana and New Mexico

Caffe Mocha in Massachusetts, Connecticut and New York

Regular Espresso in New Hampshire

Chamomile in Missouri

Lemon Herbal Tea in Missouri and Colorado

Mint Herbal Tea in Utah and New York

Darjeeling Tea in Utah

Earl Grey Tea in Missouri

Green Tea in Nevada, Utah and Missouri

Company should decrease the Marketing expenditure on leave based products showing

declining sales pattern during autumn season.