Analytics
Transition Year
Module 4
Overview of Project
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 1. Understanding
the company
Data
2. The Business
2. Applying
Plan
Analytics
1. Statistical
Techniques
2. Market
Segmentation
1. Forming a
Strategy
2. Completing
a business
report
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
Vending machines and Mace
Question
Answer
Corner Shops
Question
Answer
Best Months
March
September
December
Best Month
March
April
December
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
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)
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.
Strengths
Weaknesses
Opportunities
Threats
Quality of the
brand
Small company
Possible
expansion on a
National level.
Competition
Quality of the
chocolate
Management
differing on
strategy
Possible
expansion on an
International level
The Economic
Climate
Reliability of their
delivery service
Low number of
delivery vans
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
Introduction
The aims and tasks of the report must be filled out.
Analysis
The current operation of the company must be outlined giving all the details about the
companies current business model etc.
Results
Data 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.
Discussion
This 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.