Forecasting sales of Walmart departments for marketing budget allocation

Project Details




Gandharv Paliwal, Asmita Sonik, Aayam Ankan, Abhinav Mani, Abhinav Mani, Swagnik Chatterjee, Samta Jhingan





This project aims at providing the best possible sales forecasts for our client, ‘Walmart’.
Walmart is currently facing stiff competition from E-commerce companies like Amazon. It is
commonly observed that customers visit the brick and mortar store to view the product and end
up buying at Amazon at cheaper rates. Individuals prefer doing their repeat purchases online
instead of visiting brick and mortar stores due to the associated convenience. This has led to year
on year declining sales trend of brick and mortar channels.
This report proposes a solution to Walmart to increase the monthly sales of their brick and
mortar channels. The solution suggests forecasting next 2 months of Walmart departments and
using that information to appropriately allocate marketing budget each month (for sales
promotions and advertisements) to different departments. Here, an underlying assumption that
has been made is that the sales of Walmart departments will be positively impacted by allocating
more budget. Hence, allocating more budget to the departments could be expected to generate
more sales.
Additionally, this forecast can also help in planning budgets in a way that expenses could be
minimised in non-performing departments in the coming months which will help in affecting the
bottom line in a positive way.

Application Area: