Business Model Transition Analysis

Business Model Transition Analysis

Client Goal

To discover data-driven insights that will inform their new business model and launch with success.

Project Summary

waching movie

Overview

Rockbuster Stealth LLC wanted to transition their business model towards an online video rental service. 

To support this venture, management was looking for some data-driven answers to inform their launch strategy.

Purpose and Context

This project was built as part of the Career Foundry “Become a Data Analyst” curriculum. The client, Rockbuster Stealth LLC, is a fictional company. Their challenge, though, is real – how can an established business leverage data to set itself up for success as it moves into the future.

My Role

For this project, I served as business intelligence analyst and storyteller. I worked with the data from start to finish, building a data dictionary, providing the business insights and presentation, as well as sharing insights and recommendations with the executive team.

Tools and Analytical Techniques

This project was created with the following tools:

  • SQL in PostgreSQL
  • Tableau Public
icon for postgreSQL in navy
icon for tableau in navy

The skills used to complete this project include:

  • Relational databases
  • Database querying
  • Filtering
  • Cleaning and summarizing data
  • Joining tables
  • Subqueries and Common Table Expressions
  • Insight development
  • Data visualization
  • Presentation development
  • Storytelling

Project

circled number 1 with outline

Project Scope and Planning

Align requirements, project scope, and desired outcomes of project.

In this project, I set out to analyze historical Rockbuster data regarding the films, rental patterns, customers, geography, and revenue.

Specifically, I aimed to uncover:

  • What movies contribute to rentals and revenue
  • Where the current  customers are located
  • Any other helpful insights

Through this analysis, I would be able to make recommendations for a strategic launch of the client’s online video rental services.

Data Prep and Exploration

Determine and collect data for project, then clean, profile, and explore.

As the data was provided by Career Foundry, I was able to start off on the exploration and cleaning right away.

As part of this process, I completed the following steps:

  • Loaded the data into PostgreSQL and extracted the entity relationship diagram (ERD)
  • Created a data dictionary (linked below)
  • Familiarized myself with the data to start thinking about how to answer the business questions
  • Began to organize, sort, and filter the data with various SQL queries
  • Completed queries to identify any dirty data that could skew analysis – none found so no action taken to clean
  • Created a data profile with summary statistics

Challenges and Decisions in this Phase

  • During the analysis, it was noted that the dataset timeline was limited in that it only included information from 2006 . This presented a limited view for the analysis as rental trends over time could not be evaluated.
  • Had this been a real project, it may have been more critical to access a longer timeframe of rental and customer history. Between this being a fictional project (and this was the only data available) and also considering that most recent history would present the most recent patterns, the analysis continued with this limited dataset.

Analysis, Insights, and Visualization

Interpret data patterns and trends to uncover most impactful elements for project.

Once the initial exploration of the data was complete, it was time to start answering the key business questions and deriving the insights that would help the client form their strategy.

The primary insights and visualizations that were selected for presentation to stakeholders included themes in:

  1. Rental count and revenue generated by movie genre and rating – to confirm customer preferences
  2. Current inventory by genre and ratings – to confirm if the current stock supports customer preference
  3. Current customer base – to confirm which countries have the highest number of and highest value customers

Customer Preferences

Key Observation: The number of rentals and revenue reveal similar patterns in customer preference. For genre, Sports and Animation genres dominate the customer preference. For rating, PG-13 movies are the primary source of revenue and rentals.

number of rentals by movie genre
Figure 1 - sports and animation movies are the most popular movie genres
Figure 2 - PG-13 movies are the most popular movie rental type

Key Insights from Rental Numbers

Most Rented Genre

Sports + Animation

Least Rented Genre

Thriller

Most Rented Rating

PG-13

Least Rented Rating

G

rental revenue by movie genre
Figure 3 - sports and animation movies are the most profitable movie genres
Figure 4 - PG-13 movies are the most profitable movie rating

Key Insights from Revenue

Most Profitable
Genre

Sports + Animation

Least Profitable
Genre

Thriller

Most Profitable
Rating

PG-13

Least Profitable
 Rating

G

Current Inventory

Key Observation: The business is stocked appropriately with the customer’s preferred movie genres and ratings, which supports the goal of using current stock licenses.

inventory by movie genre
Figure 5 - sports and animation movies are the most stocked movie genres
inventory by movie rating
Figure 6 - sports and animation movies are the most stocked movie genres

Key Insights from Inventory

Most Stocked Genre

Sports + Animation

Least Stocked Genre

Thriller

Most Stocked Rating

PG-13

Least Stocked Rating

G

Customer Base

Key Observation: The countries with the most number of customers provide the most revenue.

Top Ten Countries by Revenue and Customer Numbers
Figure 7 - top ten countries by revenue and number of customers

Key Insights from Customer Base

Average Spend*

$106

*top 5 customers

Average # Customers*

32

*top 10 countries

Most Customers + Revenue

India, China, USA

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Storytelling and Presentation

Assemble actionable recommendations to drive the key outcomes for stakeholder presentation.

A story evolved as I reviewed the most crucial observations from the data. By aligning these findings with Rockbuster’s objectives, I formulated data-informed recommendations to shape their revised business model.

Conclusions

By rental count and revenue:

  • the most popular movie genre is sports.
  • the most popular movie rating is PG-13.

The most popular movie genres and ratings are stocked appropriately.

The majority of Rockbuster’s customer base exists in India, China, and the USA.

Recommendations

To launch successfully:

  • Focus marketing and service towards movies in the most popular genres and ratings.
  • Leverage current inventory (and licenses) – particularly in the favored genre and ratings – to transition.
  • Use current loyal customer base (top countries) for launch focus.

Next Steps

Define specific strategy with focus on…

  • Most popular genres
  • Most favored ratings
  • Current customer geography

…to maximize success as Rockbuster moves into new online rental space.

Dataset

The data used in this project was provided by Career Foundry and included data tables with information such as film inventory, customers, and payments.

Source

Data was pulled from PostgreSQLtutorial.com

It was provided as a zip package for our use.