homework 1-Yemi Adam 4$5

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Vanderbilt University *

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2050

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Marketing

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Jan 9, 2024

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Syndicated data homework The purpose of this homework is to help you become comfortable with the data. I hope that by working through the following questions you will be ready for a deeper dive into the next stage of the project. Please use graphs to tell a story when appropriate. Concise, easy to follow bullet points are appropriate when answering a question in words. 1. Please indicate how the following measures are related to each other? Provide an example of a calculation using the data provided to verify the relationship. a. Total x AOC Sales and Total Food Sales i. Total Food Sales represent the sales volume through the food channel and AOC represents all of the other channels where Larabar generates sales. ii. Total Food Sales and Total xAOC Sales added together equal the total overall sales for Larabar. iii. For example: in 2019, $1,974,372,412 of sales through Total US Food and $3,652,121,626 of sales through Total xAOC combined together result in total sales of $5,626,494,038. b. Total Food Sales (for the brands included in the dataset) and Total category sales in the Food channel i. Both of these are the same sales volume for the Food channel. ii. For example, the sales volume is $8,023,684,008 for both are these measures. c. Any Promotion Sales Dollars and Sales Dollars i. Sales Dollars measures all of the sales, in dollars. Any Promotion Sales Dollars refers to any sales through a promotion. ii. For example, in 2019 Sales Dollars for Larabar is $403,993,787.7 and Any Promotion Sales Dollars for Larabar is $174,826,919.3. The difference between these would be the baseline sales (sales without promotions). d. Market Units and Market Equivalent Units i. Market Units Measure how many Units, as defined by the firm, are sold during a period. Market Equivalent Units are a standardized size that measure how many equivalent units a firm sold that can be directly compared to another firm in the industry. ii. For example, e. Any Promotion Sales Units and TPR Only Unit Volume i. TPR Only Unit Volume is a portion of Any Promotion Sales Units. Any Promotion Sales represents all of the units sold from any combination of promotions.
ii. For example, in 2019 Any Promotion Sales Units is $105,016,300.94 whereas TPR Only Unit Volume is $49,108,153.56. This is a fraction of the Any Promotion measure. 2. For the duration of the data, plot the national sales trends for your product category in the Food channel. Next plot your target brand’s sales trends. Very briefly, describe what you observe. National Sales Trends: Larabar’s Sales Trends:
National sales are trending up and Larabar’s sales are trending downwards. Not following the same trajectory. 3. For the duration of the data, how do your brand sales compare to the baseline sales? Create a simple illustration to show how the available data allow you to calculate the promotion efficiency of your brand? Comparison: Efficiency is a ratio of how much of your promotional sales are incremental sales: Therfore Efficiency = (Sum of Sales – Sum of Baseline Sales) / (Sum of Any Promo Sales) 4. Select a region of your choice. For the duration of the data, what do you learn about your brand’s price, feature, display and temporary price reduction activities? Price can be inferred by dividing sales revenue by units sold.
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Price reduction has the largest contribution to promotional sales with a 58% gross contribution followed by display with has a 34% contribution. My brand’s average price is $2.50. From our observation, average price is trending up from 2019 into 2022 with 2022 well above average price at $3.60. Is your brand heavily promoted? Yes, Larabar is heavily promoted with 48.67% of the sales coming from promotion and 51.33% non-promotion . What volume of sales is from promotions. $32,283,840.99. What is the average promoted price is $2.08 and non-promoted price is $3.10. 5. For the selected region in (4) above, repeat the analyses for a competitor. Please point to key differences you observe between you and the competitor. Evaluating one of our competitor Luna from the same East North central region, we observe a flip or opposite promotion activity; contribution from promoted sales is 30% while non-promoted-70%. Luna average price is $1.53 showing that the brand is priced lower than larabar. Luna’s average promotional price of $1.30 is close to the overall average price of $1.53 which is contrast to Larabar with a margin of about $1 variation ($2.08- $3.10). Luna’s total sales is $26,313,140.76 whereas Larabar has a total sales of 66,329,428.32 which is 2x of Luna’s total revenue within the time period provided. 6. Which regions are the biggest sales volume contributors for your brand? How does the velocity in sales volume of your brand vary by region? Prepare a table or graph to summarize your results and report any relevant insights.
7. For the most recent year’s panel data, is there a demographic group for which your brand’s index is high? Is there a demographic group for which your brand’s index is low? Briefly explain why this finding makes sense to you. Please post your homework as a pdf document on canvas before the due date.