Advertisement/commercials Cost analysis:
In order to compute the effectiveness of the promotion, several factors have to be considered:
– The total cost of the promotion for media campaigns
– The rental revenues generated for the targeted vehicles (lift)
– The impact on revenues for other vehicles within the same category during that same period (cannibalization and/or upsell)
Therefore, the need to analyze rental/sales revenue that includes the promotions were applied for the Vehicles that were rented. We can get the total Rental and Sales records about which promotion affected the actual price of the vehicles and sold items. The rental may increase the
sales and revenue during the promotions. Each promotion is specified with a promotion_id, the applied period to what categories of vehicles and the percentage of original listed price.
On the other hand, the promotions have costs associated to media campaigns. That is, the cost on each promotion with associated media campaigns should be measured. The managers need to look at what is the cost of each media campaign type (for example, TV Ad, Coupon, Local Newspaper Ad or internet etc) and whether they are effective to increase their car hires and produce higher business benefits. The executives want to compare the benefits of the different media advertisements. They also identify which media provider can offer good deals to Datadictos company.
The promotions can be decided centrally or locally, depending on the cases. It is then the responsibility of the store manager to apply promotions during the sales/rental activities. The subjects of the promotion describes its scope (which products are affected), the stores, the period, the applied customer group, and the involve media companies. For example:
- a list of specific Vehicles (for example, all 4WD Vehicles),
- a specific category of Vehicles (all van Vehicles during Xmas)
- the groups of customers may benefit from it, Eg., all customers or a specific class (Gold and Platinum)).
- Media companies involved for the promotions The management is looking for determining whether the promotion was effective:
- Need to get the total rental of each promotion involved vehicles –from sale transactions fact.
- Need to get the total cost of each promotion associated media companies
- Were any promotion campaigns successfully achieved great profit?
- Which media is most beneficial across different promotion media types?
Hint: the number of media types are not fixed to each promotion campaign. You need to use one
of techniques you learned in the lecture for solving many to many relationship between the fact
table and the dimension table.
