Sections

The document is structured with the following sections:

Introduction

As I begin my career in CPGs, I wanted to focus this project on digging into some data from the industry. While I would have liked to look into POS and consumer behavior data, that is something I don’t currently have access to (nor have the funds to obtain). Instead, I found the Largest Food & Packaged Good Companies 2016 data set and will focus on the top companies’ financial growth and wins.

Data for this project is imported from https://myxavier-my.sharepoint.com/:x:/g/personal/rivaj_xavier_edu/ETX1PUd2GmFBqU3AuxZlv6YBw7vb-WazcBO6yytjNk_NlA?download=1. After my cleaning and wrangling, a total of 36 data entries and 7 variables were used of for final analysis. 2 new columns were introduced to code more efficiently (see Dummy Variables for further explanation).

Required Packages

The packages required for this markdown are:

Package Summary
knitr RMarkdown documents
rmdformats RMarkdown themes
tidyverse The tidyverse collection of packages all together
DT Making pretty javascript data tables
stargazer Making pretty summary statistics tables
corrplot Various correlation plots
PerformanceAnalytics Building awesome graphics for analytics
rvest Useful tools for working with HTML and XML
dplyr Used for data manipulation
pander Creates summary tables for Markdown
scales Used for editting labels on visuals
syuzhet Provides function that helps with Sentiment Analysis
SentimentAnalysis Perform Sentiment Analysis
wordcloud Create word cloud visual

Data Cleaning & Defining

Dummy Variables:

Dummy variables were created for these variables ease analysis: - Category -> CatDummy - Profit at a % of Revenue -> PPR_Dummy

Below is a table to reference as it explains each variable of the dataset:

VARIABLE NAME NAME OF DATA ELEMENT
Company Name of Company
Revenues Total Revenue in 2016
Profit Total Profit in 2016
Profit_Perc_Rev Profit at a % of Revenue
Category Category Company Plays In
CatDummy Dummy Variable for Category
PPR_Dummy Dummy Variable for Profit at a % of Revenue

Simple Analysis

Companies by Category

Category Company
Beverage Coca-Cola
Constellation Brands
Dr. Pepper Snapple
Food Campell Soup
Conagra Brands
Dean Foods
General Mills
Hershey
Hormel Foods
J.M. Smucker
Kelloggs
Kraft Heinz
Land O’ Lakes
Mondelez International
Pepsico
Treehouse Foods
Household & Personal Avon Products
Care Clorox
Colgate-Palmolive
Estee Lauder
HRG Group
Kimberly-Clark
Procter & Gamble
Pharmaceuticals Addvie
Amgen
Biogen
Bristol-Myers Squibb
Celgene
Eli Lilly
Gilead Sciences
Johnson & Johnson
Merck
Pfizer
Tobacco Altria Group
Philip Morris International
Reynolds American

Stats on Each Category

2016 Revenues for Top 36 CPG Companies

2016 Profit at Percent of Revenue for Top 26 CPG Companies

Descriptive Analysis

Comparing Categories by Revenue

Comparing Categories by Profit

Is there a relationship between the a company’s revenue and profit?

Looking at the graph, the positive relationship depicted validates that when revenue increases so will profit.

Because JnJ has brands in its portfolio that fall into personal care, how does JnJ’s revenue compare with those of household & personal care companies?

It was intersting to see that JnJ just topped P&G while playing in two different categories.

Predictive Analysis

For my predictive analysis, I chose to use an ANOVA test to see if there campanies’ play a role in their revenue and proft.

for Revenue:

##             Df    Sum Sq   Mean Sq F value Pr(>F)
## CatDummy     4 1.208e+09 301917045   0.897  0.478
## Residuals   31 1.044e+10 336716696

The P value is high indicating that our results are not significant, thus meaning that the category of a company does not play a role in their revenue outcome.

for Profit:

##             Df    Sum Sq  Mean Sq F value  Pr(>F)   
## CatDummy     4 286199373 71549843   5.122 0.00275 **
## Residuals   31 433046108 13969229                   
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1

The P value is low (<.01) indicating that our results are significant, thus meaning that the category of a company does play a role in their profit outcome.

HTML Analysis

Top Products Launches of 2016: Do any of the top product launches of 2016 match up belong to the top CPG companies?

Top 10 Food Product Launches

##  [1] "1. DairyPure, $1,163.1"                
##  [2] "2. Dunkin’ Donuts K-Cups, $204.1"      
##  [3] "3. Not Your Father’s Root Beer, $114.6"
##  [4] "4. Oreo Thins, $110.2"                 
##  [5] "5. Artesano, $102.4"                   
##  [6] "6. Screamin’ Sicilian, $73.2"          
##  [7] "7. Oscar Mayer Natural, $61.7"         
##  [8] "8. DairyPure Creamers, $54.9"          
##  [9] "9. Sargento Balanced Breaks. $54.2"    
## [10] "10. Henry’s Hard Soda, $50.3"

Takeaway: 40% of the most successful product launches of 2016 came from the top 36 CPG brands.

Top 10 Non-Food Product Launches

##  [1] "1. Flonase, $316.5"                     
##  [2] "2. Gillette Fusion ProShield, $144.9"   
##  [3] "3. Garnier SkinActive, $117.5"          
##  [4] "4. Tide Pods Plus Febreze, $87.3"       
##  [5] "5. Crest Pro-Health Advanced, $80.1"    
##  [6] "6. The Pioneer Woman Collection, $79.1" 
##  [7] "7. Persil ProClean, $63.2"              
##  [8] "8. Cesar Home Delights, $45.2"          
##  [9] "9. Tampax Pocket Pearl, $41.9"          
## [10] "10. Old Spice Fresher Collection, $39.0"

Takeaway: 60% of the most successful product launches of 2016 came from the top 36 CPG brands, and 5 of those 6 were P&G brands.

Twitter Analysis

JnJ and P&G in 2021

Sentiment Analysis

Moving into the qualitative data, I wanted to better understand the sentiment of the words JnJ and P&G they use in their tweets.

This analysis interested me because JnJ and P&G both shared ‘positive’ and ‘trust’ as their top 2 scores. Their third sentiment differed, and it showcases how they differ in the sentiments they market to their audiences. While the two companies are similar, it is clear in P&G’s marketing campaigns that they try to capture joy and JnJ has a heightened focus on anticipation as they prioritize their medical innovation.

Word Cloud

Johnson & Johnson (JnJ)

Procter & Gamble (P&G)