Customer Research Inc(A) - Assignment

Submitted to

Professor Amit Mookerjee

GROUP 02

Roll # Name
WMP10056 Anubhav Jain
WMP11063 Deepak Luthra
WMP11067 Harpreet Singh
WMP11068 Kanhaiya Lal Jangir
 CRI Customer portfolio Analysis
The following strategy map gives the perspective of various customers and what can be done to get
the maximum out of the customer. The attached excel sheet has all the calculations.

CRI portfolio Analysis

Development Strategy. Pricing of
the components needs to be
checked. Pricing strategy
thoroughly needs to be analysed.
May be a poweful customer who
is giving you business but asking
for low prices. cross selling other
components at superior rate may
componsate.
12.00 Retention Strategy. May be costly to serve
but give you top dollars. Up selling of
components on the basis of enhanced
10.00
features can work out to boost contribution
margin and lowering cost to serve.
8.00
6.00

4.00
Sales Mix

2.00
-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

0.00
Eliminating/filtering strtategy. Needs Development strategy. They are profitable customers but
to be analysed for any big ticket voulume is low.You can cross sell other components of
customer who can give notional brand -2.00 the research i.e study design, analysis
value image. Filtering and eliminating Contribution Margin/Cost to serve

Essentially, the strategy map is created based on three variables.

1. Contribution margin/cost to serve ( ratio of contribution margin and cost to serve on X-axis)
2. Sales mix ( ratio of revenue of each customer over total revenue on Y-axis)
3. Size of the bubble depicts the revenue per customer.

The above strategy map has been split into 4 parts.

1. Customers with high sales mix(>=20% of revenue) and (CM/CTS >1)

2. Customers with high sales mix( >=20% of revenue) and (CM/CTS <1)
3. Customers with low sales mix( < 20 % of revenue) and (CM/CTS >1)
4. Customer with low sales mix (<20 % of revenue) and (CM/CTS < 1)

The attached excel sheet has all the calculations done to get this strategy map. Based on this map,
for each customer, a strategic conclusion has been mentioned in the excel sheet attached.
Snapshot of the table is attached for reference.
client ID Revenue Margin % profit cost to serve Cost to serve % Contribution margin contribution margin % sales mix % CM/CTS Strategic decision
1 4700 100 4700 0 0.00 4700 0.28 0.05 6.00 Development strategy. Cross sell
2 32500 54 17550 14950 0.18 17550 1.04 0.32 5.91 Development strategy. Cross sell
3 10600 46 4876 5724 0.07 4876 0.29 0.10 4.29 Development strategy. Cross sell
4 39500 38 15010 24490 0.29 15010 0.89 0.39 3.08 Development strategy. Cross sell
5 3400 37 1258 2142 0.03 1258 0.07 0.03 2.96 Development strategy. Cross sell
6 15985 36 5754.6 10230.4 0.12 5754.6 0.34 0.16 2.83 Development strategy. Cross sell
7 81102 36 29196.72 51905.28 0.61 29196.72 1.73 0.80 2.83 Development strategy. Cross sell
8 51940 34 17659.6 34280.4 0.40 17659.6 1.04 0.51 2.59 Development strategy. Cross sell
9 30750 32 9840 20910 0.25 9840 0.58 0.30 2.37 Development strategy. Cross sell
10 23000 32 7360 15640 0.18 7360 0.44 0.23 2.37 Development strategy. Cross sell
11 9250 31 2867.5 6382.5 0.08 2867.5 0.17 0.09 2.26 Development strategy. Cross sell
12 99815 30 29944.5 69870.5 0.82 29944.5 1.77 0.98 2.16 Development strategy. Cross sell
13 61250 30 18375 42875 0.50 18375 1.09 0.60 2.16 Development strategy. Cross sell
14 31730 30 9519 22211 0.26 9519 0.56 0.31 2.16 Development strategy. Cross sell
15 184700 30 55410 129290 1.52 55410 3.28 1.81 2.16 Development strategy. Cross sell
16 36985 29 10725.65 26259.35 0.31 10725.65 0.63 0.36 2.06 Development strategy. Cross sell
17 38150 29 11063.5 27086.5 0.32 11063.5 0.65 0.37 2.06 Development strategy. Cross sell
18 76600 29 22214 54386 0.64 22214 1.31 0.75 2.06 Development strategy. Cross sell
19 48521 28 13585.88 34935.12 0.41 13585.88 0.80 0.48 1.96 Development strategy. Cross sell
20 26922 28 7538.16 19383.84 0.23 7538.16 0.45 0.26 1.96 Development strategy. Cross sell
21 3650 28 1022 2628 0.03 1022 0.06 0.04 1.96 Development strategy. Cross sell
22 21300 28 5964 15336 0.18 5964 0.35 0.21 1.96 Development strategy. Cross sell
23 52200 28 14616 37584 0.44 14616 0.86 0.51 1.96 Development strategy. Cross sell
24 34900 27 9423 25477 0.30 9423 0.56 0.34 1.86 Development strategy. Cross sell
25 16500 27 4455 12045 0.14 4455 0.26 0.16 1.86 Development strategy. Cross sell
26 20300 27 5481 14819 0.17 5481 0.32 0.20 1.86 Development strategy. Cross sell
27 57300 27 15471 41829 0.49 15471 0.92 0.56 1.86 Development strategy. Cross sell
28 65980 26 17154.8 48825.2 0.57 17154.8 1.01 0.65 1.77 Development strategy. Cross sell
29 505426 26 131410.8 374015.24 4.40 131410.76 7.77 4.96 1.77 Retention Strategy. Up sell
30 989387 26 257240.6 732146.38 8.61 257240.62 15.22 9.70 1.77 Retention Strategy. Up sell
31 156000 25 39000 117000 1.38 39000 2.31 1.53 1.68 Development strategy. Cross sell
32 35236 25 8809 26427 0.31 8809 0.52 0.35 1.68 Development strategy. Cross sell
33 1389 24 333.36 1055.64 0.01 333.36 0.02 0.01 1.59 Development strategy. Cross sell
34 38000 23 8740 29260 0.34 8740 0.52 0.37 1.50 Development strategy. Cross sell
35 21350 23 4910.5 16439.5 0.19 4910.5 0.29 0.21 1.50 Development strategy. Cross sell
36 62835 23 14452.05 48382.95 0.57 14452.05 0.86 0.62 1.50 Development strategy. Cross sell
37 16055 22 3532.1 12522.9 0.15 3532.1 0.21 0.16 1.42 Development strategy. Cross sell
38 800 21 168 632 0.01 168 0.01 0.01 1.34 Development strategy. Cross sell
39 410098 24 98423.52 311674.48 3.66 98423.52 5.82 4.02 1.59 Retention Strategy. Up sell
40 37300 21 7833 29467 0.35 7833 0.46 0.37 1.34 Development strategy. Cross sel
41 48151 21 10111.71 38039.29 0.45 10111.71 0.60 0.47 1.34 Development strategy. Cross sel
42 38660 21 8118.6 30541.4 0.36 8118.6 0.48 0.38 1.34 Development strategy. Cross sel
43 56700 20 11340 45360 0.53 11340 0.67 0.56 1.26 Development strategy. Cross sel
44 266650 23 61329.5 205320.5 2.41 61329.5 3.63 2.61 1.50 Retention Strategy. Up sell
45 231300 21 48573 182727 2.15 48573 2.87 2.27 1.34 Retention Strategy. Up sell
46 460311 19 87459.09 372851.91 4.38 87459.09 5.17 4.51 1.18 Retention Strategy. Up sell
47 57900 19 11001 46899 0.55 11001 0.65 0.57 1.18 Development strategy. Cross sel
48 9685 19 1840.15 7844.85 0.09 1840.15 0.11 0.09 1.18 Development strategy. Cross sel
49 42100 19 7999 34101 0.40 7999 0.47 0.41 1.18 Development strategy. Cross sel
50 15600 19 2964 12636 0.15 2964 0.18 0.15 1.18 Development strategy. Cross sel
51 7600 17 1292 6308 0.07 1292 0.08 0.07 1.03 Development strategy. Cross sel
52 35600 18 6408 29192 0.34 6408 0.38 0.35 1.10 Development strategy. Cross sel
53 29000 18 5220 23780 0.28 5220 0.31 0.28 1.10 Development strategy. Cross sel
54 252269 18 45408.42 206860.58 2.43 45408.42 2.69 2.47 1.10 Retention Strategy. Up sell
55 59789 18 10762.02 49026.98 0.58 10762.02 0.64 0.59 1.10 Development strategy. Cross sel
56 36660 17 6232.2 30427.8 0.36 6232.2 0.37 0.36 1.03 Development strategy. Cross sel
57 31284 17 5318.28 25965.72 0.31 5318.28 0.31 0.31 1.03 Development strategy. Cross sel
58 40650 16 6504 34146 0.40 6504 0.38 0.40 0.96 Elimination/filteration strategy
59 102501 16 16400.16 86100.84 1.01 16400.16 0.97 1.01 0.96 Elimination/filteration strategy
60 206125 16 32980 173145 2.04 32980 1.95 2.02 0.96 Elimination/filteration strategy
61 281962 16 45113.92 236848.08 2.78 45113.92 2.67 2.77 0.96 Elimination/filteration strategy
62 18000 16 2880 15120 0.18 2880 0.17 0.18 0.96 Elimination/filteration strategy
63 45850 16 7336 38514 0.45 7336 0.43 0.45 0.96 Elimination/filteration strategy
64 57165 15 8574.75 48590.25 0.57 8574.75 0.51 0.56 0.89 Elimination/filteration strategy
65 29300 15 4395 24905 0.29 4395 0.26 0.29 0.89 Elimination/filteration strategy
66 113780 15 17067 96713 1.14 17067 1.01 1.12 0.89 Elimination/filteration strategy
67 144500 15 21675 122825 1.44 21675 1.28 1.42 0.89 Elimination/filteration strategy
68 189358 14 26510.12 162847.88 1.91 26510.12 1.57 1.86 0.82 Elimination/filteration strategy
69 38494 14 5389.16 33104.84 0.39 5389.16 0.32 0.38 0.82 Elimination/filteration strategy
70 62800 12 7536 55264 0.65 7536 0.45 0.62 0.69 Elimination/filteration strategy
71 276608 12 33192.96 243415.04 2.86 33192.96 1.96 2.71 0.69 Pricing strategy needs looking
72 153650 12 18438 135212 1.59 18438 1.09 1.51 0.69 Elimination/filteration strategy
73 232300 12 27876 204424 2.40 27876 1.65 2.28 0.69 Pricing strategy needs looking
74 12350 11 1358.5 10991.5 0.13 1358.5 0.08 0.12 0.62 Elimination/filteration strategy
75 27500 11 3025 24475 0.29 3025 0.18 0.27 0.62 Elimination/filteration strategy
76 223681 10 22368.1 201312.9 2.37 22368.1 1.32 2.19 0.56 Pricing strategy needs looking
77 19100 10 1910 17190 0.20 1910 0.11 0.19 0.56 Elimination/filteration strategy
78 293600 10 29360 264240 3.11 29360 1.74 2.88 0.56 Pricing strategy needs looking
79 258535 9 23268.15 235266.85 2.77 23268.15 1.38 2.54 0.50 Pricing strategy needs looking
80 74547 8 5963.76 68583.24 0.81 5963.76 0.35 0.73 0.44 Elimination/filteration strategy
81 30600 9 2754 27846 0.33 2754 0.16 0.30 0.50 Elimination/filteration strategy
82 115925 9 10433.25 105491.75 1.24 10433.25 0.62 1.14 0.50 Elimination/filteration strategy
83 186680 9 16801.2 169878.8 2.00 16801.2 0.99 1.83 0.50 Elimination/filteration strategy
84 203320 7 14232.4 189087.6 2.22 14232.4 0.84 1.99 0.38 Elimination/filteration strategy
85 36500 7 2555 33945 0.40 2555 0.15 0.36 0.38 Elimination/filteration strategy
86 18510 6 1110.6 17399.4 0.20 1110.6 0.07 0.18 0.32 Elimination/filteration strategy
87 110885 5 5544.25 105340.75 1.24 5544.25 0.33 1.09 0.26 Elimination/filteration strategy
88 16030 5 801.5 15228.5 0.18 801.5 0.05 0.16 0.26 Elimination/filteration strategy
89 18500 5 925 17575 0.21 925 0.05 0.18 0.26 Elimination/filteration strategy
90 6100 9 549 5551 0.07 549 0.03 0.06 0.50 Elimination/filteration strategy
91 36675 4 1467 35208 0.41 1467 0.09 0.36 0.21 Elimination/filteration strategy
92 91900 3 2757 89143 1.05 2757 0.16 0.90 0.16 Elimination/filteration strategy
93 36300 2 726 35574 0.42 726 0.04 0.36 0.10 Elimination/filteration strategy
94 125055 1 1250.55 123804.45 1.46 1250.55 0.07 1.23 0.05 Elimination/filteration strategy
95 11500 6 690 10810 0.13 690 0.04 0.11 0.32 Elimination/filteration strategy
96 47250 5 2362.5 44887.5 0.53 2362.5 0.14 0.46 0.26 Elimination/filteration strategy
97 11739 3 352.17 11386.83 0.13 352.17 0.02 0.12 0.16 Elimination/filteration strategy
98 15650 5 782.5 14867.5 0.17 782.5 0.05 0.15 0.26 Elimination/filteration strategy
99 54450 -12 -6534 60984 0.72 -6534 -0.39 0.53 -0.54 Elimination/filteration strategy
100 8700 4 348 8352 0.10 348 0.02 0.09 0.21 Elimination/filteration strategy
101 2000 4 80 1920 0.02 80 0.00 0.02 0.21 Elimination/filteration strategy
102 43180 -9 -3886.2 47066.2 0.55 -3886.2 -0.23 0.42 -0.42 Elimination/filteration strategy
103 19981 -10 -1998.1 21979.1 0.26 -1998.1 -0.12 0.20 -0.46 Elimination/filteration strategy
104 1200 5 60 1140 0.01 60 0.00 0.01 0.26 Elimination/filteration strategy
105 145800 -9 -13122 158922 1.87 -13122 -0.78 1.43 -0.42 Elimination/filteration strategy