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ElecKart is an e-
Modelling commerce
Project Flow
Business Understanding Data Understanding Data Preparation
• Objective • Data uploading • Select Relevant data
• Background Business • Describe Data • Integrate the Data
Understanding • Understanding level of data • Clean the Data
• Problem Statement • Data Quality Check • Construct the Data
• Data Cleaning • Format Data
• Understanding Data type
Model building
Linear Model (Mid submission)
Deployment Multiplicative Model
Keyock
Distributed lag
Hierarchical
Objective
Background To be able to deliver better value through enhanced media and channel experience
To be able to leverage cutting edge research tools and new sources of information to
stay ahead of competition
Problem • How to optimize spending on commercials, online
campaigns, and pricing & promotion ?
Statement
Data Description
Other Data
• Monthly spends on various advertising channels
• Days when there was any special sale
• Monthly NPS score – this may work as a proxy to ‘voice of customer’
As per the instruction data used from July 2015 to June 2016.
Data type of columns looked at and modified as per the need
Analytics Solution
Data has been provided in the following
files which has been uploaded in the R
project for analytics.
ConsumerElectronics.csv
Data Loading
Media data and other information.xlsx
Product Details.docx
Since 80% of the variable
Filter out dates which are has 'No Expected
Rows containing NA are
not in July 2015 and June delay'(\\N) will assume
removed(as only .3%)
2016 these scenarios as zero
delay.
EDA
Will start analyzing the weekly Gross
Merchandize Value the online website
generating in sales.
• GMV, Product_mrp are in terms of INR, while marketing
spend recorded in INR Cr. Lets convert marketing spend to
INR. While models won’t be sensitive to these parity in
units, but for easy of model explanation, will standadize
units.
Unit Scalling
Performance driver analysis
Home Audio
Camera and Accessories
Gaming Accessories
Correlation of
different Market
levers for Camera
and Accessories
Correlation of
different
Market levers
Home Audio
Correlation of
different Market
levers Gaming
Accessories
Model Evaluation for Camera and Accessories
Model Significant Variables Adjusted R2 Error(RSE) Remarks • Adjusted R2 is the
Linear Models nps + Digital_adstock + 47% 1822000 Adj.R2 is moderate but error is too high, performance of the model
Sponsorship_adstock we will not select this model on training data
Multiplicative discount + 74% 1.077 Adj.R2 is good, RSE also is less. We are • More the Adj.R2 better the
Model Content.Marketing_adstock selecting this model. model is.
+ Online.marketing_adstock • RSE is the measurement of
Koyck Model nps + Sponsorship_adstock + 45% .74 Though RSE is less but Adj.R2 is error
SEM_adstock moderate or less, hence we are not
selecting this model.
Distributive Digital_adstock + 40% .77 Though RSE is less but Adj.R2 is
Model Sponsorship_adstock + moderate or less, hence we are not
list_price_ma selecting this model.
Distributive nps + online_order_perc + 79% .93 Adj.R2 is good, RSE also is less.We are
Multiplicative discount1, selecting this model.
Model
Based on the adjusted R2 and RSE We have shortlisted Multiplicative Model and Distributive Multiplicative Model
Camera and accessories Elasticity
• The figures are indicating elasticity of a variable with
respect to overall sales.
• Increasing the spent on the KPIs which have positive
elasticity would increase the sales, hence more fund shall
be allocated for those KPIs.
• As per the Multiplicative model Online marketing shall be
given priority while as per the Distributive Multiplicative
model Discount will have a positive effect on sales in the
subsequent week.
• Hence budget shall be focussed on increasing spent on
online marketing and discount.
Model Evaluation for Home Audio
Model Significant Variables Adjusted R2 Error(RSE) Remarks • Adjusted R2 is the
Linear Models discount + 44% 2131000 Adj.R2 is moderate but error is too high, performance of the model
Sponsorship_adstock + we will not select this model on training data
special_sale_week • More the Adj.R2 better the
Multiplicative discount + 71% .66 Adj.R2 is good, RSE also is less. We are model is.
Model Content.Marketing_adstock selecting this model. • RSE is the measurement of
+ Online.marketing_adstock
error
Koyck Model nps + Sponsorship_adstock + 52% .697 Though RSE is less but Adj.R2 is
SEM_adstock moderate or less, hence we are not
selecting this model.
Distributive Digital_adstock + 49% .71 Though RSE is less but Adj.R2 is
Model Sponsorship_adstock + moderate or less, hence we are not
list_price_ma selecting this model.
Distributive nps + online_order_perc + 80% .52 Adj.R2 is good, RSE also is less.We are
Multiplicative discount1, selecting this model.
Model
Based on the adjusted R2 and RSE We have shortlisted Multiplicative Model and Distributive Multiplicative Model
Home Audio Model evaluation Elasticity
• The figures are indicating elasticity of a variable with
respect to overall sales.
• Increasing the spent on the KPIs which have positive
elasticity would increase the sales, hence more fund shall
be allocated for those KPIs.
• As per the Multiplicative model TV advertisement shall be
given priority while as per the Distributive Multiplicative
model Sponsorship will have a positive effect on sales.
• Hence budget shall be focussed on increasing spent on
TV Advertisement and Sponsorship.
Model Evaluation for Gaming
Model Significant Variables Adjusted R2 Error(RSE) Remarks • Adjusted R2 is the
Linear Models discount + 49% 1038000 Adj.R2 is moderate but error is too high, performance of the model
Sponsorship_adstock + we will not select this model on training data
special_sale_week • More the Adj.R2 better the
Multiplicative discount + 82% .82 Adj.R2 is good, RSE also is less. We are model is.
Model Content.Marketing_adstock selecting this model. • RSE is the measurement of
+ Online.marketing_adstock
error
Koyck Model nps + Sponsorship_adstock + 51% .73 Though RSE is less but Adj.R2 is
SEM_adstock moderate or less, hence we are not
selecting this model.
Distributive Digital_adstock + 52% .68 Though RSE is less but Adj.R2 is
Model Sponsorship_adstock + moderate or less, hence we are not
list_price_ma selecting this model.
Distributive nps + online_order_perc + 79% .87 Adj.R2 is good, RSE also is less.We are
Multiplicative discount1, selecting this model.
Model
Based on the adjusted R2 and RSE We have shortlisted Multiplicative Model and Distributive Multiplicative Model
Gaming accessories Model evaluation
Elasticity • The figures are indicating elasticity of a
variable with respect to overall sales.
• Increasing the spent on the KPIs which have
positive elasticity would increase the sales,
hence more fund shall be allocated for those
KPIs.
• As per the Multiplicative model Online
Marketing and sponsorship shall be given
priority .
• Hence budget shall be focussed on
increasing spent on Online Marketing and
Sponsorship.