The impact of cross-selling on the leverage of the average ticket

: the case of Sport Zone

Abstract

The global sports and fitness clothing industry is highly fragmented, facing in a past few years, a slowdown due to the impact of the European Economic crisis. Nowadays, companies are facing a challenge to manage uncertainty of the marketplace and be able to take advantage of that, by invest on marketing initiatives amongst many others. This work embraces the Cross-Selling strategy, an important tool used by companies for increasing the profitability per customers as well as improve the retention rate. The study takes the case of Sport Zone, a Portuguese company launched in 1997, which is nowadays the biggest specialized retail store operating in a Sports Division. However, and in the retail market has been noticed an overall slowdown in sales, being mandatory to rethink and invest in new strategies and tools to face the uncertainty and competition, being an example that suits perfectly the aim of this study, since its purpose is to understand the impact of cross-selling on the leverage of average ticket. The study was conducted by using big data’s company and empirical knowledge of management, throughout cross-tabs we were able and confident to say that two products were more likely to be sold together and compute the impact on the average ticket. Confining the analysis to one Business Unit, the study proves that applying a cross-selling strategy, Sport Zone is able to leverage 58% the net sales and 51% the average ticket.

Date of Award	30 Oct 2015
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Pedro Celeste (Supervisor)