Historical

Data
Analysis
 Total Sales Total Transactions Total Quantity Purchased

SAR 345 MN 859 K 3.23 MN

-15 % compared 2015 -1 % compared 2015 -17 % compared 2015

Average Transaction Value Average Basket Size Stores

SAR 402 3.76 47

-14 % compared 2015 -16 % compared 2015

 Moderately priced Fragrance industry has witnessed a boost in sales, whereas in Al Musbah Perfume sales has dropped by 17%
 Half of Total transactions which had single category purchased in 2015, has gone up to 66% in 2016

 Designing and running campaigns specifically targeted for improving basket size, based on basket combinations and category
performance
 Promoting perfume category more aggressively, offering discount, vouchers (DVS), free samples and promoting through social media
 Focusing on CRM , engaging customers and improving customer experience with brand , building customer life cycle with brand
 15% drop in sales could be attributed to 17% reduction in quantity purchased,
since Average Product Price and Total Transactions have been steady

2015 2016

Total Transactions 407 K 403 K

Total Quantity Purchased 1.53 1.26
Million Million
Average Product Price 117 121
SAR SAR
Average Basket Size 3.76 3.1
4
Average Transaction Value 440 SAR 379 SAR

210
Y-o-Y Quantity Purchased
Qty sold in thousands

160

110 2015
2016
60

10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

 No of transactions has been steady, which can be a indicator

that customers are visiting stores , but there spend/basket size has reduced

Analysis is based on Common stores across 2015 and 2016

Observing Market Trends drop in sales can be attributed to transaction contrary to trend in Al
Musbah

-15% -11%

-1% -13%

-16% -1%

-14% 4%

 Taking steps to arrest the downfall in ABS which is more in Musbah as compared with market trend

 Transactions have not dipped much , so we have an opportunity to increase it as well

1. Increasing customer visits to the store
2. Acquiring new base
Top 3 Zones Contribute to nearly 90% of sales, Jeddah region has shown maximum drop in overall
transactions, sales and quantity sold
% Sales Contribution 2016
% Change in 2016 w.r.t 2015

Avg transaction
Zone Sales Transactions Avg basket size
value
40% Riyadh -19% -10% -8% -10%
7% Dammam -9% 15% -29% -21%

Jeddah -28% -20% -4% -10%

9% Al Khobar -7% -7% 1% 0%

39% Madinah -7% 8% -17% -14%

Al Hofuf -15% -25% 24% 13%

 Riyadh Quantity purchased and transactions have gone down by 17% and 10% contributing to 19% drop in sales
 Dammam Average product price up by 11% , while 29% drop in ABS has overhauled 15% uplift in transactions, thus leading to 9% drop in sales,
Highest sales per store
 Jeddah ABS has always been on the lower side (2.7), 28% drop in sales is majorly driven by drop in Transactions

 Taking market trend into account, Riyadh and Jeddah have shown more drop than usual, while Al Khobar and Madinah have shown the similar behaviour

Analysis is based on Common stores across 2015 and 2016

 Stores have different categories sold across, targeting customers based on store segmentation

Category sold in stores

47 47
44 42 42
35
# Stores

32 30
26 24
16
12 12 10 10
6
2

Store wise category count

# Stores

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Category Sold
Analysis is based on Common stores across 2015 and 2016
¼ Recommendation
and
Campaign
Suggestion
What is Customer Relationship Management (CRM) ?

Understand, anticipate & manage the

customers’ needs

Focus on the retention of

existing customers

Enhancing customer experience by right

communication @ right time

Integration of people, process and

technology for brand’s success
 Why do we need CRM

Better understanding of the customers

Deeper insights into customers’ purchase

pattern and product preferences

Influence / Change customers’ behavior

Increasing purchase frequency

Increasing customer retention

Tangible & Intangible benefits

Generating extra sales Solving business

related problems Enhancing customers’
experience (GES)
How CRM works?
Deep dive into customers’ purchase
01 patterns and product & preferences
Initial Analysis

Create customer segments & set

segment objectives based on the 02
learnings of Initial Analysis Segmentation

Target customers through personalized

03 communications and test relevant
Campaign & hypothesis to understand what works
Hypothesis Testing

Increase sales by influence customer

04
behaviour and incorporate learnings
Change behavior &
Learn
 Designing Life Cycle for Customers

• Analysing and understanding customer

behavourial trend, defining key
Step 1
parameters such as latency, visits, product
preference, volume of perfume purchased

Perfume Based
Step 2 • Setting up milestones by studying
Life cycle the latency trend

• Setting up lifecycle engine through

Step 3 Capillary Campaign Management Tool to
send out automated messages on each
milsetone
 Campaign Suggestions

ABS Builder Campaign

• Average basket size has dropped by 16% which is the main reason for the drop in overall sales in 2016
• Promoting cross sell within category and across category

• Buy 4 for the price of 3 (Perfume section)

• Buy 3 perfumes and get a perfume worth X SAR ( Testers)

• Buy X Get Y free/Flat off, promoting cross sell

within category or across category

• DVS(Dynamic value systems) – Issuing Vouchers based on

Basket size for particular products such as perfume,
sensi and cosmetics which are top contributor to my sales

• Purchase a combo of two product within perfume category

and get free gift from Sensi/Cosmetics section

• Purchase three product from Sensi/Cosmetics and get a free

makeover
 Campaign Suggestions

Revenue based Campaign

• Discount percentage for low moving products has been on the lower side, Offering more discount can help increase the sales of
these categories
• Clubbing Sensi and Cosmetics ,Market and toys together and offering a collective discount
• Oriental as a category falls in mid discounting range and perfume as a sub-category within oriental has witnessed 20% drop in
sales, so promoting it through aggressive discounting will help in boosting sales

Discount Banding
• Offering flat discounts on purchase such as X% off
Low Discount % (<4%) : Market, Toys, Electronics,
on purchase worth Y SAR
Mobile and Accessories
• Successive discounting based on quantity purchased or
Mid Discount % (4-10%) : Sensi, Oriental,
amount spend, where margin and App is on the lower side
Electronics, Leather
• Points related campaigns to incentivize customers
High Discount % ( >10 %) : Perfume, Cosmetics
• Offering instant vouchers (DVS) on instant purchase of
clubbed Categories
• Purchase worth Y SAR and get a free make-up session
 Suggestions for increasing footfall

Transactions have been steady across both years, Boosting footfall

will help in increasing transactions , thus boosting sales

In store promotions
• Displaying, media advertising, promotions,
special discounts etc. within store to increase footfall

Free samples with discount codes

• Free sample with any order of price above some range
• Sample with discount codes to be redeemed with the purchase
Improving customer experience particular product
• Measuring and analysing customer emotions.
• Acting on customer feedback
• Understanding customer’s point of view
• Creating a well balanced customer experience team
• Organizing customer delight activities

Offering instant voucher codes on first transaction

to be redeemed later
• Offers valid only on the first transaction
Promoting new collections • Sale for the first time users
• Offering promotional codes via social media and allowing users
to obtain discount on their purchase
• Promoting special/new collection
¼ Analytics
Way
Forward
 Way Forward

Data & System Integration Ramadan Analysis Demographics Analysis Customer Segmentation

• Compare the Ramadan period with • Study the distribution of • Segmenting customers on the
• Data collection and validation customers across various
pre-Ramadan and post-Ramadan basis of Product purchased,
• Key KPI’s validation periods, Measuring performance custom fields spend and visit pattern

• ;
Data Enrichment campaign
needs to be executed in order to
• :
Analyze the spend behavior and
product preference during
• Identify nationality distribution •
and the language preference
8
Designing more improvised and
personalized campaigns on the
gather the customer basis of the segments
information Ramadan
• Relate these with the spend
pattern and identify the
• Standard Monthly Dashboards opportunity areas
¼
Appendix
 Store Wise Learnings
500

Thousands
WH SMITH CHECK-IN 2016
Dammam
WH SMITH CHECK-IN 2015
400
WH SMITH Arrival
Sales in Thousands

300

2016
200

100

0
Jan Feb Mar Apr May JunAxis Title Jul Aug Sep Oct Nov Dec

• KFIA DOMESTIC DEPARTURE is the highest sales contributing store (50%)

• WH Smith Store opening was a good move. Extra 5% drop in sales is observed for WH Smith Check in store for 2016
(w.r.t overall business level drop) . While Combining Both WH Smith Stores , the sales has gone up by 39%

• 49% drop in ABS for Xplora Arrival Store , which has been arrested by 9% increase in bills. Overall Sales has dropped by
2%. ABS is high in the Boarding Store 8.27 compared with 3.25 for arrival store.

• WH Smith Arrival store started doing well since july and it has overshadowed WH Smith check-in

• Sensi Stores have shown more drop in comparison with WH Smith and Xplora Stores
 Store Wise Learnings
350,000

Jeddah 300,000

250,000

200,000
SENSI Al Hijaz - 1
150,000 2016
Al Hijaz - 2 Showroom

100,000

50,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• Sensi Aziz Mall is the highest sales contributing store (20%)

• For Sensi Al Hijaj-1, Sales in 2016 has not dropped much given the overall business drop and has followed the same
trend line towards the end of year , while for Al hijaj -2 Showroom Trend line has always been on the lower side , the gap
has increased towards the end of year

• In 2015 the sales difference per month was -5% which has increased to 27% in 2016, Sensi Al Hijaj -1 has performed
better at the end of 2016. Sensi Al Hijaj-2 has witnessed average drop of 30% in sales, bills and qty

• SENSI - Andalus Mall has shown most drop in all respect which has decreased its sales contribution from 11% to 4% in
2016
 Store Wise Learnings
1200000

Riyadh
Jeddah 1000000

800000

600000

400000

200000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

AKARIA OLAYA SHOWROOM MEGLEYA1SHOWROOM SENSI GURNATAH CENTER

• Akaria Olaya Showroom has the highest ATV of 516 and highest APP of 161

• ATV/ABS drop is major in Megelaya1 Showroom

• SENSI GURNATAH CENTER has increased its performance from 2015.

• There is an increase in sales, bills and quantity on an average of 7.5%. First half Akaria Olaya Showroom did better and 2nd half
Sensi Gurunath Center has better sales

• Megelaya1 Showroom distinctively performed better

• Top 3 stores have shown uplift in bills except for Megelaya1 Showroom where drop in quantity has led to drop in sales
Top 10 Category contribute to 90% of sales, in which perfumery alone contributes to 67% of sales

Category wise trend 2015-16

140 600

120

Quantity in Thousands
500

100
400
80
Sales in Millions

300
60
200
40

20 100

0 0

Axis Title

Total Sales 2015 Total Sales 2016 Total Bills 2015 Total Bills 2016 Total Qty 2015 Total Qty 2016

• Perfumery has shown more drop than market trends. Compared with exclusive perfume brands it’s APP is 25% lesser than business
level Price, but it’s ABS when purchased alone i.e 1.8 is higher than business level figure
• Sensi Beauty has the least drop in top 10 categoríes (and even when compared to market trends), while cosmetics have shown major
drop
• Sales Contribution trend has remained similar for both the years across categoríes
• Positive growth is observed across three categoríes , but they just contribute to 5% of total sales (Mobile. Acessories and Leathers)
 Zone Wise Overall Performance

Sales/Transaction trend ATV/ABS trend

80,000,000 200,000
700 6.00

180,000
70,000,000
600
5.00
160,000
60,000,000
140,000 500
4.00
50,000,000
120,000
400
40,000,000 100,000 3.00
300
80,000
30,000,000
2.00
60,000 200
20,000,000
40,000
1.00
100
10,000,000
20,000

0 0.00
0 0
Riyadh Dammam JEDDAH AL Khobar MADINAH Al Hofuf
Riyadh Dammam JEDDAH AL Khobar MADINAH Al Hofuf
2015 ATV 2016 ATV 2015 ABS 2016 ABS
2015 Sales 2016 Sales 2015 Transactions 2016 Transaction
 Sub-Category performance within top selling Categories

Perfumery Market Cosmetics Sensi Oriental

Beauty

• Men’s/Women’s • Top 5 have • 58% of sales come

• 45% of sales • There are 41 distinct through perfume,
sub category shown more
contribution are of sub category. which is business
totally has 85% drop than
confectionaries, • 48% of sub category level drop.
sales contribution business level
which is an usual contributing sales have • 41% of oil extracts
which follows contributing to
business level drop. shown uplift. Rest of woods/sets are an
similar drop as 95% of sales of
• In top 4 sub them shows drop. uplift.
business level. this category.
categories, 95% of • Sub Categories which
• 11% of uplift
sales have shown usually are sold as
obsereved in
drop either equal or whole sets have shown
unisex section.
greater. uplift.
• Single items like nail
polish, eye liner, lipstick
have shown drop.
 Understanding Zone wise Category performance

Al Al
Jeddah Riyadh Dammam Madinah
Khobar Hofuf

Oriental Toys Cosmetics

None
Uplift or same None None Mobiles + Accessories Sensi Beauty Oriental
Gifts Leathers Sensi Beauty
Leathers
Electronics

Drop rate or Perfumery

Less than Oriental Perfumery Perfumery
Sensi beauty Cosmetics
business Sensi beauty
Mobiles + Accessories
level Electronics
Sensi beauty
Perfumery Cosmetics
Cosmetics Electronics
Perfumery Leathers
Electronics Electronics Toys
Cosmetics Gifts
Greater than or Oriental Leathers
Market Market
equal to Perfumery Gifts Gifts
Toys Toys
business level: Cosmetics Mobiles + Accessories
Leathers
Electronics Sensi beauty
Mobiles + Accessories
Market
Toys
Perfumery has been part of top selling combinations featuring in 12% of bills where more than one
category has been purchased

Combinations % Transactions
Perfumery + Store Gift 12%

Cosmetics + Sensi Beauty 3%

Perfumery + Market 2%

Market + Toys 1%

Perfumery + Oriental 1%

Perfumery + Sensi Beauty + Store Gift 1%

Perfumery + Cosmetics 1%

Market + Mobiles + Accessories 1%

Perfumery + Cosmetics + Store Gift 1%

Perfumery + Sensi Beauty 1%

 For the year 2015 nearly half of the bills had only one category purchased, which increased to 2/3rd of the bills in 2016
 Perfumery and Store gift have shown strong correlations
 Cosmetics and Sensi Beauty can be clubbed together as a single category for cross sell
 Saturday has been the top performing day with having highest sales contribution, ATV and ABS,
While Bills made from evening to night contribute to major chunk of sales

Day wise trend 2015-16 Hour wise trend 2015-16

35,000,000 70,000 40%

30,000,000 60,000 35%

25,000,000 50,000 30%

25%
20,000,000 40,000
20%
15,000,000 30,000
15%
10,000,000 20,000
10%

5,000,000 10,000
5%

0 0 0%
Mon Tue Wed Thu Fri Sat Sun Morning bills Afternoon bills Evening bills Night Bills Midnight Bills

Total Sales 2015 Total Sales 2016 Total Bills 2015 Total Bills 2016 Sales Contribution 2016 Sales Contribution 2015

08:00 AM to 12:00 PM – Morning Bills,01:00 PM to 03:00 PM – Afternoon Bills,04:00 PM to 07:00 PM – Evening Bills,08:00 PM to 11:00
PM – Night Bills,12:00 AM to 07:00 AM – Midnight Bills