The objective of this project is to analyze the Adidas sales database for the year 2020 and 2021 and identify key insights to help improve sales performance and optimize business strategies. By analyzing the sales data, we aim to understand factors influencing sales, identify trends, and uncover opportunities for growth. The analysis will be conducted using Power BI to provide an interactive and insightful dashboard.
The Adidas sales database contains the following columns:
• Retailer: Represents the business or individual that sells Adidas products directly to consumers.
• Retailer ID: A unique identifier assigned to each retailer in the dataset.
• Invoice Date: The date when a particular invoice or sales transaction took place.
• Region: Refers to a specific geographical area or district where the sales activity or retail operations occur.
• State: Represents a specific administrative division or territory within a country.
• City: Refers to an urban area or municipality where the sales activity or retail operations are conducted.
• Gender Type: Categorization of individuals based on their gender, such as male or female.
• Product Category: Represents the classification or grouping of Adidas products.
• Price per Unit: The cost or price associated with a single unit of a product.
• Units Sold: The quantity or number of units of a particular product sold during a specific sales transaction.
• Total Sales: The overall revenue generated from the sales transactions.
• Operating Profit: The profit earned by the retailer from its normal business operations.
• Operating Margin: A financial metric that indicates the profitability and efficiency of a retailer's operations.
• Sales Method: The approach or channel used by the retailer to sell its products or services.
The analysis was conducted using Power BI, following a series of steps outlined below:
-
Data Cleaning:
- The initial dataset was assessed for consistency, reliability, completeness, duplicates, and correct spelling.
- Verification checks were performed to ensure the dataset's integrity and cleanliness.
-
Data Transformation:
- The dataset was transformed to enhance its suitability for analysis.
- The data was structured in a table format for better organization and analysis.
- Calculations were applied to derive additional insights.
-
Data Analysis:
- DAX formulas were used to create measures and to derive meaningful insights from the data.
-
Data Visualization:
- The analysis results were visualized using various Power BI charts.
- Slicers were implemented to provide interactivity and enhance the dashboard's usability.
Overall, the Power BI analysis and visualization process facilitated a thorough examination of the data, enabling the extraction of valuable insights and presenting them in an interactive and visually appealing manner.
Total Orders Received: 9,648
Total Units Sold: 2,478,861
Product Categories: 3
Average Price Per Unit: $363
Total Revenue Generated: $899,902,125
Overall Profit: $332,134,761.45
Geographical Coverage: Regions: 6 States: 50 Cities: 52
Total Retailers: 6
Analyze the total profit generated by each retailer and identify the top-performing retailers.
The top 2 performing retailers are West Gear with an overall profit of $85,667,873.18 and Foot Locker with an overall profit of $80,722,124.81
Track the trend of sales over time at different levels such as year, quarter, month, and day.
There was an massive increase in revenue from 2020 to 2021. Revenue increased by 294% in 2021, this could be that the sales in 2020 was negatively impacted by the covid 19 pandemic. 2020 recorded a total revenue of $182,080,675 while 2021 recorded a total revenue of $717,821,450. There was notable upward trajectory in revenue from Q1 which peaks in Q3 and then starts declining. This means more sales happen in the summer. Q3 recorded a total revenue of $265,308,354. July is the top performing Month with a total of $95,480,694 revenue generated, while the top performing day of the week is Fridays with a total of $146,683,099 revenue generated. This means most customers make more purchases on Friday in preparation for the weekend.
Examine the distribution of sales across different product categories and identify the top-selling categories.
The top performing product category is Street Footwear the with a total revenue of $336,829,057, this accounts for 37% of the overall revenue.
Analyze the total number of units sold by product category and gender type to understand customer preferences.
Male customers perfer the Street Footwear product category and bought a total of 593,320 units while the female customers prefer the Apparel Product category and bought a total of 433,827 units
Determine the most effective sales method in generating sales and compare the performance of different sales channels.
In-store sales method generated the highest sales of $356,643,750, indicating customers' preference for physically seeing the items.
Online sales method generated the lowest sales of $247,672,882.
Explore how sales data varies by region, state, and city to identify potential areas for improvement.
The top performing Region is West with a total sales of $269,943,182, while the least performing Region Midwest is with a total sales of $135,800,459
The top performing State is New York with a total sales of $64,229,039, while the least performing State is Nebraska with a total sales of
$5,929,038
The top performing City is Charleston with a total sales of $39,974,797, while the least performing City is Omaha with a total sales of $5,929,038.
States and Cities with less than 8 million overall sales needs improvement.
Identify the top 5 performing cities based on profit and gain insights into their sales strategies.
The top 5 performing Cities by profit and their top performing sales methods are;
Charleston - $15,607,190 (Online)
New York - $13,899,973 (Outlet)
Miami - $12,168,619 (In-store)
Portland - $10,760,799 (In-store)
San Francisco - $10,256,250 (Outlet)
In conclusion, the analysis of the Adidas sales has provided valuable insights into the performance of the business. Here are the key findings:
-
Significant revenue Increase: There was a massive increase in revenue from 2020 to 2021, with revenue soaring by 294% in 2021. This substantial growth can be attributed to the recovery from the negative impact of the COVID-19 pandemic on sales in 2020. In 2020, the total sales amounted to $182,080,675, while in 2021, the total sales reached $717,821,450.
-
Top 2 Performing Retailers: West Gear and Foot Locker emerged as the top 2 performing retailers, generating profits of $85,667,873.18 and $80,722,124.81, respectively. Strengthening partnerships with these retailers can lead to further growth and success.
-
Seasonal Sales Pattern: The analysis indicates a notable upward trajectory in revenue throughout the year, with sales peaking in Q3 and then gradually declining. This pattern suggests that more sales occur during the summer season. Specifically, Q3 recorded the highest sales, reaching a total of $265,308,354. Understanding this seasonal trend can help in planning marketing campaigns and inventory management.
-
Product Category Analysis: Street Footwear emerged as the top-selling product category, contributing $336,829,057 in sales, accounting for 37% of the overall sales. Understanding customer preferences, particularly in terms of gender, is crucial for targeting marketing efforts effectively.
-
Sales Method Effectiveness: In-store sales proved to be the most effective method, generating sales worth $356,643,750. On the other hand, online sales performed comparatively lower, with total sales of $247,672,882. It is important to enhance the online sales platform and implement targeted digital marketing strategies to boost online sales.
-
Regional and City Analysis: The West region outperformed other regions, with total sales of $269,943,182. Among cities, Charleston emerged as the top performer, generating sales worth $39,974,797. States and cities with sales below $8 million require focused improvement efforts to tap into their potential.
The remarkable 294% revenue increase from 2020 to 2021 highlights strong post-pandemic recovery. To sustain this momentum, it's crucial to analyze key drivers behind this growth—whether it’s increased consumer spending, expanded distribution channels, or enhanced marketing strategies. Future efforts should focus on reinforcing these success factors while mitigating potential risks that could slow growth.
West Gear and Foot Locker have proven to be the most profitable retail partners, contributing a combined profit of over $166 million. Investing in exclusive collaborations, co-branded marketing campaigns, and enhanced product offerings for these retailers could further solidify relationships and drive higher sales. Additionally, exploring similar retail partners with growth potential can diversify revenue streams.
The peak sales in Q3 indicate that summer is the highest revenue-generating season. This insight should be leveraged by launching seasonal promotions, targeted ad campaigns, and inventory stocking strategies ahead of peak demand. Additionally, strategies to minimize post-Q3 sales dips—such as limited-time offers, bundled holiday promotions, or loyalty incentives—can help maintain sales stability year-round.
With Street Footwear contributing 37% of total sales, it is evident that this category resonates strongly with customers. A deep dive into consumer demographics, such as age, gender, and purchasing behavior, can fine-tune marketing efforts. Additionally, expanding best-selling product lines, offering personalized recommendations, and introducing seasonal or limited-edition footwear can further boost revenue.
Despite strong in-store sales ($356M), online sales lagged at $247M. Enhancing the e-commerce experience through improved website UX, faster checkout processes, personalized product recommendations, and social media-driven campaigns can drive more conversions. Additionally, investing in influencer partnerships, targeted ads, and omnichannel experiences can create seamless online and offline shopping journeys.
The West region leads in sales, and Charleston is the top-performing city. This presents an opportunity to expand successful strategies from these high-performing areas to underperforming states and cities (sales below $8 million). Conducting location-specific consumer research, adjusting pricing strategies, and launching targeted local promotions can help unlock potential growth in these areas.
By implementing these recommendations, businesses can capitalize on their strengths, address areas of improvement, and drive sustainable sales growth, ultimately achieving long-term success in the market.