Data Optimised Strategies for Agricultural Retail

This project focuses on addressing profit and inventory management challenges faced by Laxmi Khad Bhandar, an agricultural retail shop established in 1987 specializing in farm essentials such as shovels, seeds, and fertilizers.

Project Overview

Laxmi Khad Bhandar has been experiencing challenges related to profit margins and inventory management, particularly with seed decay issues. This project aims to understand the causes behind these fiscal losses and enhance sales performance through data analysis.

Objectives

• Increase net profit
• Determine ideal purchase timing
• Optimize inventory
• Streamline the flow of goods

Methodology

The project employs various analytical approaches:

• Time series analysis using line charts
• Excel functions for sales data prediction and analysis
• Pivot tables for detailed data examination

Data Analysis

The analysis includes:

1. Daily Earnings Analysis: Identifying sales patterns throughout the month
2. Revenue Distribution: Determining top-performing SKUs using Pareto charts
3. Profit-Loss Analysis: Comparing buying and selling prices across products
4. Fixed Cost Analysis: Breaking down consistent operational expenses

Key Findings

• Sales generally increase from the beginning of the month, peak mid-month, and decrease toward month-end
• Products like "6444 ARAZIE 3 KG" and "LAPIDOS 4 KG" are major revenue contributors
• "FERTERRA 4KG" leads in sales volume despite not being the highest revenue generator
• Higher-priced items generally offer better profit margins

Recommendations

1. Bundling Items: Package high-margin products with complementary items
2. Limited Time Deals: Create urgency through time-sensitive offers
3. Loyalty Programs: Establish point-based systems to encourage repeat business
4. Community Activities: Host educational sessions on product benefits
5. Customer Feedback System: Implement regular customer experience surveys
6. E-commerce Integration: Expand to platforms like Flipkart and Amazon
7. Demand-based Pricing: Adjust pricing strategies based on seasonal demand

About the Author

This project was completed by Yash Kumar (Roll No: 22f3000472) as part of the BDM Capstone Project for the IITM BS Degree Program at the Indian Institute of Technology, Madras.

Acknowledgements

Special thanks to Laxmi Khad Bhandar for providing the necessary resources that enabled the completion of this project.