Sales optimization management in R-city mall

Use of statistics in solvingreal business issues

Group members : Sneh Karamchandani(25)

Ashwini kumar (28) Nirriti s.s. (35)

Pratik Shah (47) Mukull Ovalkar (59) Abhishek Yadav (60)

Observation

Welcome to R City! The city with a fresh experience for the true shopper With a blend of the best in shopping, entertainment and food

Approximately around 5000 people visit the mall every day

OBJECTIVE OF THE RESEARCHPerform a continuous probability analysis to

determine the customers’ visits and

their choice of buying ,during the time zone of 2pm-5pm and 7pm-9pm and use the analysis for the sales

optimization.

DETERMINATION OF SAMPLE SIZE

Sample 1Time zone- 2pm-5pmNo.of observations – 100 Sample 2 Time zone- 7pm-9pm No. of observations- 200

DESCRIPTION & CALCULATIONS

DATA –The following information provides the number of footfalls during the two time zones. The data is categorized into 3 different zones of the R-city mall.

Determine the probability that people entering the mall between

1)2-5pm 2)7-9 pm come only for entertainment purpose?TYPETIME ZONE

GROCERYSHOPPING (G)

ENTERTAINMENTSHOPPING (E)

APPAREL SHOPPING (A)

ROW TOTAL

TIME 2-5pm (T1)

70 20 10 100

TIME 7-9pm (T2)

30 110 60 200

COLUMN TOTAL

100 130 70 300

CALCULATIONS

P(T1) = 100/300 = 0.33 P(T2) = 200/300 = 0.67

CONDITIONAL PROBABILITY TABLE

JOINT PROBABILITY TABLE

G/T E/T A/T

T1 0.7 0.2 0.1

T2 0.15 0.55 0.3

p(G/T)*p(T) P(E/T)*p(T) p(A/T)*p(T)

T1 0.231 0.066 0.033

T2 0.1005 0.3685 0.201

TREE DIAGRAM

CALCULATIONSBAYES’S LAW = Condition1 -Time zone (T1)2-5pm P(E/T1) P(T1) P(T1/E) = P(E/T1)P(T1) + P(E/T2)P(T2) 0.2* 0.33 0.2*0.33 + 0.55*0.67P(T1/E)= 0.1519 =15.19% BAYES’S LAW = Condition2 -Time zone (T2) 7-9pm P(T2/E) = P(E/T2) P(T2) P(E/T1)P(T1) + P(E/T2)P(T2) 0.55* 0.67 0.2*0.33 + 0.55*0.67P(T1/E)= 0.848 = 84.8%

CONCLUSION-

The probability that people entering the mall between 2-5pm , come only for entertainment purpose is 15.19%

The probability that people entering the mall between 7-9pm , come only for entertainment purpose is 84.8%

INFERENCE

As people entering mall between 2-5 pm are concentrating more on grocery than any other entertainment purpose. So the mall management should concentrate to promote these products in afternoon

while people entering mall between 5-7 pm mainly come for the entertainment purpose so the management should concentrate entertainment products and food items etc.in the evening

This will ultimately optimize the net sales of the mall

WEAKNESSES IN SAMPLES

Not everyone in the mall come for the shopping or entertainment purpose

The observations conducted are not exact representation of the population

During the festival seasons the variation in the number of customers is very high

Thank You