Regork: Future Growth Analysis

Introduction

In this study, we utilize Regork’s completejourney dataset, consolidating information across dataframes to enable a comprehensive performance analysis.

Our focus compares coupon redemption behaviors between households with and without children—an essential demographic contrast for targeted promotions. Understanding differences in preferences and purchase drivers between these groups can inform customer-centric marketing. Therefore, drive more effort into the right segment of our coupon campaign and allocate resources toward tailored messaging and offerings that resonate with each audience.

Data Processing

Packages

  • completejourney
  • dplyr
  • ggplot2
  • ggrepel

The code consolidates multiple datasets to enable a comprehensive analysis. It inner_joins the coupons, campaigns, products, transactions, demographics, and coupon_redemptions dataframes.

The columns used for this report in the final merged dataframe include:

  1. “product_type”
  2. “campaign_id”
  3. “product_id”
  4. “household_id”
  5. “kids_count”
  6. “age”
  7. “income”
  8. “redemption_date”
  9. “coupon_upc”
  10. “quantity”
  11. “sales_value”
  12. “transaction_timestamp”

Demographics

This section provides a demographic analysis, specifically investigating coupon redemption behavior between households with children versus those without. The initial visualization compares total coupon redemptions between these two household types in order to determine if having children impacts overall coupon usage patterns.

  • Total Coupon Redemptions by Household

We merge several datasets include: ‘coupons’, ‘campaigns’, ‘products’, ‘transactions’, ‘demographics’, inner_join() them by their common ID. We mutate() a new variable named has_kids, which categorizes households as “With Kids” or “Without Kids” based on the presence of children indicated by the ‘kids_count’.

This visualization provides insights into the difference in coupon redemptions between households with and without kids, facilitating further exploration into the performance of various departments and products within each demographic group.

  • We can see that households without kids have a significantly higher total coupon redemption value, surpassing 600,000, compared to households with kids, which stand around 400,000. This suggests that households without kids are more actively engaged in redeeming coupons compared to those with kids.

  • Coupon Redemptions Across Age Groups

The analysis then examines coupon redemption behavior across age groups of households with and without children.

  • For household with kids, the age group spanning from 25 to 54 years have a similar coupon redemption amount, varies around ~110. For household without kids, the positive trend appear and peak at the age group of 45-54 with >200 redemption.

  • Further investigation into the preferences and behaviors of this age cohort could reveal insights into potential barriers or factors influencing coupon redemption in this demographic.

  • Coupon redemptionsacross income levels

This facilitates an analysis of the impact of income on coupon redemption behaviors between these household segments.

  • Interestingly, the middle-income range, spanning from $35,000 to $99,000, demonstrates a higher number of coupon redemptions across both household types. This suggests that households within this income bracket actively seek opportunities to save money through couponing, regardless of whether they have children.

Campaigns

This section analyzes marketing campaign effectiveness between households with and without children. We examine coupon usage trends, demographic distribution, temporal patterns, and most frequently redeemed products for each campaign for these two household segments.

  • Coupon redemptions across campaigns

  • It seems like Campaigns 8, 13, and 18 are the most successful based on the total coupon redemption observed in the chart. These campaigns have demonstrated higher levels of engagement and effectiveness in driving coupon redemption rates compared to others.

  • Top Campaign Timeline:

  • The visualization displays the total revenue growth for Campaigns 8, 13, and 18 over their respective time periods. The upward trajectory of the revenue lines indicates increasing coupon redemptions and consumer engagement with each campaign.

  • Overlaying the peak redemption dates reveals strategic alignment with holidays and seasonal events

    • Campaign 8 leveraged Memorial Day and Father’s Day spending.
    • Campaign 13 capitalized on Labor Day and back-to-school shopping.
    • Campaign 18 coincided with Veterans Day and peak holiday demand.

  • Total revenue between households with and without kids through each campaigns

  • We filter the merged data into specified campaigns, which the dataset is divided into two subsets: one containing data for households with kids and the other for households without kids. Subsequently, the calculated total revenue = sales value * quantity.

  • For Campaign 8, anchored around Memorial Day and Father’s Day, families drove 65% of sales. However, households without kids still contributed a significant 35% revenue share. Campaign 13, aligned with Labor Day and back-to-school shopping, achieved a balanced 50-50 split between households with and without kids. These periods typically witness heightened consumer spending, which can balance revenue distribution between households with and without kids. Campaign 18, launched for Veterans Day and peak holiday shopping, saw families overwhelmingly account for 85% of sales, while childless households contributed 15%.

Next is a list of the top products in each campaign for households with kids or not.

With kids

Campaign 8

Campaign 13

Campaign 18

Based on the graph above for household with kid, we can see the the 3 most popular products are:
1. FLUID MILK WHITE ONLY and MILK
2. YOGURT NOT MULTI-PACKS and YOGURT
3. BANANAS

Insights:
+ Prevalence of convenient frozen foods and juices shows a preference for efficient nutrition and busy meal-solutions.
+ Despite value-orientation, households indulge with premium upgrades during promotions to enhance family dining experiences.
+ Varied economy and frozen entree options highlight the critical role convenience plays with time-constrained families.
+ Specialized baby products validate a focus on age-specific offerings that cater to infant and child needs.

Without Kid

Campaign 8

Campaign 13

Campaign 18

Based on the graph above for household with kid, we can see the the 3 most popular products are:
1. FLUID MILK WHITE ONLY and MILK
2. YOGURT NOT MULTI-PACKS and YOGURT
3. BANANAS

Insights:
+ Dairy, produce, and pantry staples underscore an orientation toward everyday essentials.
+ Prevalence of frozen foods and juices signifies valuing efficiency and convenient nutrition.
+ Diverse frozen and ready-to-eat selections cater to their need for swift meal solutions.
+ Inclusions like eggs point to an interest in versatile ingredients for cooking and baking.

Conclusion

Summarizing the Problem: - Our focus was to compare coupon redemption behavior across households with and without children, while trying to find which demographics prefer using coupons more and which campaigns are coupons being redeemed on the most.

Summarizing How The Problem Was Addressed: - This problem was addressed using the completejourney data, inner joining multiple data sets to enhance our analysis.
- By analyzing which household type used the most total coupons, how coupon redemption varied by age range, and which income levels contributed the most. - Also analyzed which campaigns coupons were being redeemed on the most, and focusing our target audience on these campaigns. - Looked into the total revenues of the top campaigns and how they were composed of in relation to the household types. - Found the top products redeemed for the top campaigns for both household types.

Interesting Findings : - Both households prioritize essential staples like dairy, yogurt and bananas, indicating the fundamental role these play across segments. Similarly, frozen produce and juices reveal a collective affinity for efficient nutrition. - The skew towards budget frozen meals and entrees for families signifies extreme time scarcity, filling nutritional gaps with quick heat-and-eat options. - Certain items are unique like baby foods for household with kids or coffee creamers for household without kid. - Households without kids are more engaged in redeeming coupons in relation to households without kids, with a ratio of 3:2, suggesting households without kids use more coupons. - Households without kids in the age range of 45 to 54 have the highest coupon redemption, indicating that there is more interest and opportunity to use coupons in middle aged households rather than younger households.
- Total coupon redemption for households without kids in the age range of 25 to 54 years have a similar amount with little variation. - Both household types within the income bracket of $35,000 to $99,000 seek out opportunities to save money using coupons at a similar rate, while differences among coupon redemption emerge in higher income levels. This symbolizes that lower income households of both types worry about saving money in a similar fashion. - Campaigns 8, 13, and 18 are the most successful in coupon redemptions, with the amount of coupons being redeemed on these campaigns being significantly more than the rest.
- Redeeming coupons on milk, yogurt, and bananas were the most popular for both household types. - Households with kids had baby food in their top 10 products for campaign 13 and 18, symbolizing that age-specific offering cater to households with infant and child needs.

Recommendations : - Give promotions to households with kids for top selling goods on certain holidays, specifically Father’s Day and Memorial Day which were focused on in campaign 8, where households with kids contributed to 65% of sales, but total income generated was the least compared to campaign 13 and 18. This will drive more consumer spending on our top 3 campaigns, but also encourage more spending on the less marketed campaign. - Due to the correlation of the top products coupons are being redeemed on in both household types, we can bundle these products together to better cater towards the needs of our customers. This will make the consumer shopping experience more efficient while increasing the amount of product sold. - Taylor marketing strategies around the target audience of households with and without children who make an average income of $35,000 to $99,000 per year because they have both shown similar rates of coupon use.

Limitation Of Analysis : - The data used is from 2017, so the findings may not be relevant for the current year. If current data was used, we would be more confident that our analysis could be used by the company today. Especially since Covid has just past us and buyer trend is very different now than it was in 2017. - Certain data like more campaign details can be used to enhance our marketing campaign so we can more confidently increase the number of coupons available to the public during certain holidays, such as Father’s Day and Memorial Day as stated in our recommendations. - Conducting our own surveys to a sample population, for instance everyone who enters Kroger on a certain day, with them conducting a short survey on which products they use coupons on the most, basic demographic questions, which products they would like to see have coupons, etc. could give us more relevant and real time data to which demographics and households prefer which products. This can give us valuable information on what products to target in our marketing campaigns.