Analytics-Driven Channel Partner Profitability Enhancement andProduct Mix Optimization

Lubrication manufacturers need to find ways beyond just increasing their sales revenues to
maintain profitability in an increasingly competitive lubricants market. This project will be
studying the potential application of an analytics framework to improve both product mix and
profitability of the channel partners of a key lubricant manufacturer within southern regional
distribution network in India. To verify the researcher's hypothesis, statistical analyses will be
performed on the internal sales data of the last two fiscal years (FY2023/FY2024 &
FY2024/FY2025) for each of the six southern states of India and by sale per channel partner
by performance and by contribution margin. All aspects of data analysis and visualisation
will be done using both Microsoft Excel and Power BI. In conclusion, analysing sales and
channel partner performance only on a volume basis convolutes the data set. Within this
convoluted data set, the researcher will also conclude that the top partners represent a very
small portion of total regional sales and that the regions high margin product categories
(including PCMO, SCV, and Vehicle Care) are well below average in terms of being
represented in the current channel partner's product mix. This report recommends making the
use of data dashboard software an institutionalized process for managing channels on a
regular basis; rebalancing a product mix by moving toward higher profit margin categories;
and developing a relationship between segmentation strategies and partner profitability. It
was found that the switch from using intuition as the basis for managing channels to using
evidence has a direct effect on generating higher profit margins and provides a sustained
competitive advantage.