analytics transition year module 4
TRANSCRIPT
AnalyticsTransition YearModule 4
Week 1 Week 2 Week 3 Week 4
Overview Introduction to the challenge
Using Analytics to understand the problem
Interpretation of Analysis
New Company Strategy and Business Report
Learning
Outcomes
1. Background of the company
2. The Business Plan
1. Understanding Data
2. Applying Analytics
1. Statistical Techniques
2. Market Segmentation
1. Forming a Strategy
2. Completing a business report
Overview of Project
Module 3: Summary
• Statistical techniques were used to find the mean mode and median of our data
• Market segmentation was introduced and explained
• The data was split into different market segments based on who was buying the product
• The market segments were analysed and an example of predictive analytics was given
• A general ledger was given to calculate the current profit of the company
Market Segmentation
The solutions should look to improve the business using the analytics results obtained, a full example of solutions can be found in the sample AAIC report.
On the next slide are some solutions that can be used as an example of how analytics can be used to solve business problems.
It is important to realise that even if maths isn’t a strong point, it is still a very useful tool to be able to understand the meaning behind analytics
and how it can be used to solve real life problems.
Recap on Previous Results
Company Overview
Key Facts
• 25 Full Time Staff• 3 Types of Chocolate Bar (Milk, Dark, White) in 3 sizes (Small, Medium, Large)• Owns 1 delivery van used to deliver all produce to customers• All chocolate is handmade and expensive to produce
Core Values
• Good Customer Relations• Quality Handmade Goods
Seamus Fitzgerald
Seamus lives on the family farm in Lisdoonvarna.
He is married with two children and he hopes that one day his son, Brian, will take over the business.
His wife is also an employee of Seacláid Ltd. and she is head of the Production team for the company.
Seamus has a degree in Irish Studies with Arts from NUI Galway. He is very proud of his home grown business and recognises the marketability of an Irish product.
Seamus sees the business being handed down to his children when he and his sister retire. He hopes the business will have expanded but still have kept the true Irishness of the product as its core value.
Laoise Fitzgerald
Laoise currently lives and works from Tallaght, Co. Dublin.
Laoise is unmarried with no children and enjoys the Dublin City life more than life at home in Lisdoonvarna.
Laoise has a degree in Business with Marketing from University of Limerick.
She currently is the manager of the Marketing team for Seacláid Ltd. and keeps in contact with the rest of her team via email and conference calls.
In recent years Laoise has put a big shove on Seamus to break into emerging markets however Seamus has been unwilling to take these steps.
Finalised Results
Question Answer Question Answer
Best Months MarchSeptemberDecember
Best Month MarchAprilDecember
Best Times 12:00 – 13:00 19:00 – 22:00
Best Times N/A
Best Location Clare Best Location Clare
Best Vendor Vending Machine Best Vendor Corner Shop
Best Product Choco Milk Best Product Choco Milk
Best Product Size Small Best Product Size Small
Vending machines and Mace Corner Shops
Finalised Results
Here is a review of the finalised results as outlined last week.
Dr. General Ledger Cr.
Detail Number of Bars € Detail Number of Bars €
Large Boxes Sold 10600 €29,680.00 Large Boxes Cost 10600 €21,730.00
Medium Boxes Sold 8620 €18,102.00 Medium Boxes Cost 8620 €12,499.00
Small Boxes Sold 14700 €23,520.00 Small Boxes Cost 14700 €16,905.00
Large Bars Sold 330 €924.00 Large Bars Cost 330 €676.50
Medium Bars Sold 276 €579.60 Medium Bars Cost 276 €400.20
Small Bars Sold 491 €785.60 Small Bars Cost 491 €564.65
Raffle N/A €2,600.00
Total Income €73,591.20 Total Cost €55,375.35
Profit €18,215.85
Market Segmentation: Full Dataset
We will now calculate the % of each type of customer in the dataset using Excel.
% of OAP′s = 28%
% of Students = 34%
% of Standard = 38%
Strengths, Weakness, Opportunities, Threats
(SWOT Analysis)
Strengths Weaknesses Opportunities Threats
Quality of the brand
Small company Possibleexpansion on a National level.
Competition
Quality of the chocolate
Managementdiffering on strategy
Possible expansion on an International level
The Economic Climate
Reliability of their delivery service
Low number of delivery vans
Areas of Improvement
SWOT Analysis is used to identify the areas in which a company needs to improve or use in its plans for the future. It is a useful way to plan a strategy for the future.
New Company Strategy
Exercise:
Strategy and Implementation are two key fundamentals for a company.
Without strategy a company cannot move in the right direction
• Can you come up with a strategy for this company based on the information that you have found on the company?
Examine new strategies under the following three headings
• Expansion
• Internal Process
• Marketing
Don’t forget to discuss any drawbacks,
no solution is perfect.
Strategy 1: Expansion
• Expand outside of Mace shops
• Increasing number of vending machines
• Moving into more profitable counties e.g. Dublin
• Foreign Expansion
Possible Drawbacks:
• Requires a large amount of Investment
• Requires an increase in the number of Delivery Vans
• Increase in the number of employees
• May be difficult to find an appropriate location in a different country
Strategy 2: Internal Processes
• Increase the number of Delivery vans
• Eliminate the least profitable bar i.e. Medium sized bar
• Identify the key hours and key months when the bar sales are at their highest and aggressively target them
• Increase production
Possible Drawbacks:
• Increase in capital required to finance an increase in the number of delivery vans
• Cost of disposing of the machinery used to produce the medium sized bar
• Time consuming
Strategy 3: Marketing the Product
• Expand into the student sector by use of Social Media Advertising through which they are most easily accessed.
• Expand on standard sector to increase revenues. This can be accomplished through the use of traditional forms of advertising i.e. TV, Newspapers and Radio.
• Organise special offers and competitions to increase word of mouth and increase sales
Possible Drawbacks:
• Large budget needed for marketing
• Time resources and effort required to run special offers and competitions
• Advertising may not be as effective as it used to be because people have been numbed to through constant advertising in their daily lives
Solution
• There is no CORRECT answer about which strategy is most effective.
• Strategy depends on a multitude of factors:
— Company Core Values
— Resources available
— Management Structure
— Efficiency of Processes
Business Report
Guidance on Short Report
IntroductionThe aims and tasks of the report must be filled out.
AnalysisThe current operation of the company must be outlined giving all the details about the
companies current business model etc.
ResultsData analysis is examined with questions on specific sales statistics. This section is simply
reading data from graphs and figures in order to answer the questions asked.
DiscussionThis section involves using the results as evidence to come up with action plans in order to
improve the business. This is the most important part of the report. Finally the report should be concluded briefly stating its main findings. The complete report can then be compared to the
sample AAIC report.
What’s next?
• Fill out the final report in full.
• Compare the completed report with the AAIC report to see parts you may have missed.