Task 1 Framing The Business Scenario
Task 1 Framing The Business Scenario
1. Which region is producing the most profit, and which region is producing the
least?
• Given that it is dependent on sales, the primary source of money for the company, this
question is significant to the CEO.
• The CEO must consider revenue analysis since senior executives are constantly thinking about
how to boost profitability.
• Here, the CEO is curious about the viewing income by area to determine which locations are
producing the most and which regions are producing the least.
• The CEO will be able to make decisions about how to increase revenue generation in the
locations that are already producing the most using the data and research.
• The CEO will research the reasons why there aren't enough sales in the underperforming
regions before attempting to modify the items and make them more appropriate for those
areas.
2. What is the trend for revenue on a monthly basis, and which months have
seen the highest rise or fall in revenue?
• The CEO will gain insight into the revenue's monthly pattern and how it changes over time.
• The CEO will then be able to examine the effects that internal corporate changes have had on
sales.
• For instance, explain how the entrance of a new area or the debut of a new product
increased sales for the online business throughout the month.
• The CEO might also examine whether there have been any internal delays that would have
contributed to a possible decline.
• Senior management must do such analyses in order to plan forward and attempt to provide
customers with the best possible experience.
3. What quarters had the most revenue? Are sales impacted by the seasons?
• Due of seasonality, there will always be months in the retail industry with higher demand.
• There will be instances where the data will undergo recurring, predictable modifications
every year.
• Such seasonal months would need to be identified because the CEO would want to come up
with a plan that would make the most of the months with higher demands.
4. What percentage of overall income are the top customers responsible for?
Are these customers essential to the company's success, or is the customers
more diverse?
• This research is essential since it will help the CEO determine what factors are most
responsible for the overall income.
• It would be possible to determine which consumers contribute the most to sales by looking
at the top customers of the retail establishment.
• The shop may then come up with a plan where the top customers can be targeted with
additional goods they can purchase.
• Due to the fact that these customers are the store's top purchasers, this will guarantee more
income for the business.
• A firm may benefit from having fewer consumers buy in larger quantities, but there may also
be a negative aspect.
• Because these consumers make up the majority of the store's income and have the ability to
bargain for lower pricing, retailers would have less negotiating leverage with them.
• The CEO must be informed about the customer diversity so that he may make advance plans.
• The strategy would be to broaden the customer base and focus on additional consumers who
would boost sales in situations when the company is heavily dependent on a small number of
customers.
6. How long does it take for returning customers to place their next purchase
after receiving the first one?
• The CMO will be able to determine order frequency with the use of this study.
• This would entail figuring out how long it takes for customers to place new orders at the
shop.
• It is assumed that customers who have just made a purchase will be thinking about the
product and will likely buy or use it again in the future.
• The CMO may develop a strategy to persuade recent consumers to return and spend more
after the data from the analysis is collected.
• It is possible to make an attempt to remind consumers who haven't made purchases from the
shop in a while that it has been a while since their previous transaction.
7. Which consumers have placed many orders and how much profit is generated
by them?
• How much a consumer spends at the store to buy goods determines the revenue for the
business.
• Because of this, analysis must be performed to ascertain how much money is coming from
the store's frequent consumers.
• The CMO can come up with a plan to increase recurring business from consumers who spend
more on their purchases.
• A consumer should be encouraged to return to the store if they made a significant purchase
there the first time, it is also crucial to remark.
• A marketing plan will guarantee that the shop will continue to earn more money from the
high-paying consumers in the future.
8. Who are the consumers who have returned the most frequently? What
percentage of the revenue do they contribute?
• Assessing which customers are returning the most frequently and how much they are
contributing to the business is also crucial.
• Customers could require the same things on a weekly or monthly basis, but they don't have
much financial worth.
• As a result, these consumers' contribution to revenue will be minimal.
• On the other hand, some customers could place orders twice a year and generate a lot of
income.
• Because many customers only make purchases during specific months, management must
make sure there are enough supplies on hand to fulfil their demands.
• More discounts must be offered to customers with big order quantities but low income so
they may purchase in bulk and generate more sales.