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Chip Category Analysis

This project analyses customer purchasing behaviour within the chip category to support data-driven retail category strategy and decision-making.


Objective (Why)

To identify key customer segments, understand what drives spending (volume vs price), and translate insights into clear strategic recommendations for category review.


Scope (What & Who)

  • Category: Packaged savoury snack products (chips)

  • Customers: Segmented by

    • Life Stage
    • Premium Affinity (Budget, Mainstream, Premium)
  • Focus Areas:

    • Sales contribution by segment
    • Purchase volume vs price sensitivity
    • Pack size and brand preference

Methodology (How)

The analysis follows a structured analytics workflow:

  1. Data Preparation

    • Cleaned and formatted transaction and customer datasets
    • Filtered to chip-only products
    • Removed extreme outliers to reflect realistic behaviour
  2. Feature Engineering

    • Extracted pack size and brand from product descriptions
    • Merged transactions with customer segmentation data
  3. Metrics & Analysis

    • Total sales and customer counts
    • Average units per customer
    • Average price per unit
    • Segment-level spend drivers
  4. Visualisation & Insight

    • Comparative charts across customer segments
    • Identification of volume-driven vs price-driven behaviour

Key Outputs

  • Customer segment performance analysis
  • Spend driver breakdown (volume vs price)
  • Visualisations supporting strategic recommendations
  • A reproducible R Markdown report suitable for stakeholder review

Tools

  • R
  • R Markdown
  • tidyverse

How to Run (Technical)

  1. Open the project in RStudio
  2. Ensure the working directory is set to the project root
  3. Knit chip_analysis.Rmd to generate the report (HTML or PDF)

Outcome

The analysis highlights:

  • Which customer segments contribute the most value
  • Whether spend is driven by higher prices or higher volumes
  • How category strategy can be tailored by segment to improve both sales and margin

This project demonstrates the application of data analytics to retail commercial strategy, combining technical analysis with business interpretation.


Author

Sinta Ahwalisa

About

A retail analytics project focused on the FMCG snack category, analyzing customer purchasing behaviour in the chip category to support category management and commercial decision-making. The analysis segments customers by life stage and price sensitivity to identify key spend drivers (volume vs price)

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