PROJECT 2 [DOCUMENT SUBTITLE]

CREATED BY: MEGAN B. MCDANIEL REVIEWED BY: KARISHMA SHARMA

DEREK DOUGON ZAC BAKER

UNIVERSITY OF WASHINGTON BOTHELL BBUS 330 – PROJECT #2

TEAM 1

OCTOBER 25, 2015

Confidential

10/25/2015 Project 2 1

EXECUTIVE SUMMARY As sales and promotion managers, this report is intended to help you make better decisions about product pricing and sales promotions. Our key objectives are to help you answer these two questions…

Which stores and sales regions would benefit from a promotional campaign and additional marketing? What time of year should products be offered at full price and when should discounts be used?

We have analyzed relevant data by strongest regions (East, Texas, and North), stores (1-8), and products (17” Monitor, 101 Keyboard, PC Mouse, and Desktop CPU). We also focused on total sales (quantity and monthly).

RECOMMENDATIONS To determine which stores and sales regions would benefit the most from a promotional campaign and additional marketing we compared the total revenue for each sales region (Table 1). The East sales region had the strongest quarterly revenue and the North sales region had the weakest quarterly revenue by a difference of $295,292.05. Taking into consideration that the North sales region has 2 stores and the East/Texas sales regions both have 3, these results are not a fair representation of the North sales region’s performance. To get a better understanding for why the East sales region is producing the highest revenue we ran another query showing revenue by each store (Table 2). Store No. 6 of the East sales region brought in the highest revenue and Store No. 2 of the Texas sales region brought in the lowest revenue by a difference of $213,386.20. As you can see by the chart the top two revenue stores are from the East sales region, likely being the contributors to the East region’s success. The sales region that would benefit the most from a promotional campaign and additional marketing would be the Texas sales region. The Texas region is experiencing the lowest average sales and we suggest in addition to a boost in their marketing strategies, a more in-depth study of their operational practices. If it is decided that there is a greater market segment available to support better sales, we also suggest a grand re-opening party for store no. 2 to bundle goods (i.e. 101 Keyboard & PC Mouse) at a discount. This will reintroduce customers to the store and intrigue price savvy customers. To help decipher when products should be offered at full price and when they should be discounted we analyzed the monthly sales of each store by product description (Reference Monthly Sales per Unit Report). Below are discounting recommendations for each store during the analyzed months. If a product/s is discounted below it's because there was a severe drop in sales in comparison to surrounding months. Some products are bundled below because one product had low sales in that month and another had high sales. The purpose of bundling is to incentivize purchasing both items together potentially increasing sales of both.

Store no. 1 would benefit from discounting PC mice (Nov.), bundling discounts for Desktop CPUs’ with 17” Monitors (Oct. /Nov.) and discounting 101 Keyboards (Oct.).

Store no. 2 would benefit from bundling PC mice with 17” Monitors (Dec.) and offering a discount on 17” Monitors (Dec.). Please reference the attached Access file for “Monthly Sales per Unit Report” and other supporting data.

Store no. 3 would benefit from bundling 17” Monitors with Desktop CPUs (Dec.) and offering PC mice at a discount (Nov.).

Store no. 4 would benefit from bundling 17” Monitors with Desktop CPUs (Dec.) and bundling PC mice with 17” Monitors (Nov.).

Store no. 5 would benefit from discounting Desktop CPUs (Dec.) and bundling PC mice with 101 keyboards (Nov.).

Store No. 6 would benefit from bundling Desktop CPUs with 17” Monitors at a larger discount (Oct.). Store No 7 had fairly distributed sales during the quarter and had overall high revenue we suggest they

continue to use their current strategy. Store No. 8 should bundle Desktop CPUs and 17” monitors (Nov.).

Confidential

10/25/2015 Project 2 2

Table 1

Sales by Region

Sales Region Total sales

East $529,124.80

Texas $234,595.05

North $233,832.75

Table 2

Sales by Store No

Store No Total sales Units Sold

6 $267,648.90 727

7 $170,040.85 548

5 $158,334.00 615

8 $91,435.05 257

1 $90,281.10 325

3 $90,051.25 306

4 $75,498.75 267

2 $54,262.70 132