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.