Predictive And Qualitative Analysis Report

As a sales manager, you will use statistical methods to support actionable business decisions for Pastas R Us, Inc., a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. In simpler terms, you are reviewing available information to determine if what your company is doing works. In this assessment, you use predictive and qualitative analysis skills to create a report for the executive team from available Pastas R Us, Inc. data about the effectiveness of the current expansion criteria, loyalty card program, and marketing position. Scenario Since its inception, the Pastas R Us business development team has favored opening new restaurants in areas that satisfy the following demographic conditions within a 3-mile radius: Median age is between 25–45 years old. Household median income is above the national average. At least 15% of the adult population is college educated. Last year, the marketing department rolled out a loyalty card strategy to increase sales. Under this program, customers present their loyalty card when paying for their orders and receive some free food after making 10 purchases. The company has collected data from its 74 restaurants to track important variables such as average sales per customer, year-on-year sales growth, sales per sq. ft., loyalty card usage as a percentage of sales, and others. A key metric of financial performance in the restaurant industry is annual sales per sq. ft. For example, if a 1,200 sq. ft. restaurant recorded $2 million in sales last year, then it sold $1,667 per sq. ft. Preparation Analyze the Pastas R Us charts file for your report, including the scatter plots and regression equations for the following pairs of variables: "Sales/Sq.Ft. ($)” versus “Bach. Degrees (%)” “Median Income ($)” versus “Sales/Sq.Ft. ($)” “Median Age (Years)” versus “Sales/Sq.Ft. ($)” “Loyalty Card (%)” versus “Sales Growth (%)” Assessment Deliverable Write a 700- to 1,050-word predictive and qualitative analysis report of Pastas R Us, Inc. that includes the following sections: scope and descriptive statistics, analysis, and recommendations and implementation. Section 1: Scope and descriptive statistics State the report’s objective. Discuss the nature of the current data. What variables were analyzed? Summarize your descriptive statistical findings from Week 1. Section 2: Analysis Interpret the scatter plots and designate the type of relationship (increasing/positive, decreasing/negative, or no relationship) observed in each one. Determine what you can conclude from these relationships. You may include a copy of each chart in your report, but it is not required.

Sample Solution

Section 1: Scope and Descriptive Statistics

Objective

The objective of this report is to provide a predictive and qualitative analysis of the current expansion criteria, loyalty card program, and marketing position of Pastas R Us, Inc. The analysis will be based on data collected from the company's 74 restaurants.

Nature of the Current Data

The data analyzed for this report includes the following variables:

Annual sales per sq. ft.
Average sales per customer

Full Answer Section

Year-on-year sales growth
Sales per sq. ft.
Loyalty card usage as a percentage of sales
Median age
Median income
Percentage of adult population with a bachelor's degree

Descriptive Statistical Findings

The following are some of the key descriptive statistical findings from the data analysis:

The average annual sales per sq. ft. for Pastas R Us restaurants is $1,667.
The average sales per customer is $7. * T h e a v er a g eye a r - o n - ye a rs a l es g ro wt hi s 3 * T h e a v er a g e l oy a lt yc a r d u s a g e a s a p erce n t a g eo f s a l es i s 26 * * S ec t i o n 2 : A na l ys i s * * * * S c a tt er Pl o t s * * T h e f o ll o w in g a re t h e t y p eso f re l a t i o n s hi p so b ser v e d in t h esc a tt er pl o t s : * " S a l es / Sq . Ft . ($ )” versus “Bach. Degrees (%)” - Negative
“Median Income ( $) ” v ers u s “ S a l es / Sq . Ft . ($ )” - No relationship
“Median Age (Years)” versus “Sales/Sq.Ft. ($)” - Negative
“Loyalty Card (%)” versus “Sales Growth (%)” - Positive

Conclusions from Relationships

The scatter plots show that there is a negative relationship between sales per sq. ft. and the percentage of the adult population with a bachelor's degree and median age. This means that restaurants in areas with a higher percentage of college-educated adults and older residents tend to have lower sales per sq. ft. There is no relationship between sales per sq. ft. and median income. The scatter plot also shows that there is a positive relationship between loyalty card usage and sales growth. This means that restaurants with higher loyalty card usage tend to have higher sales growth.

Recommendations and Implementation

Expansion Criteria

Based on the findings of the analysis, it is recommended that Pastas R Us reconsider its current expansion criteria. The company should place less emphasis on the percentage of the adult population with a bachelor's degree and median age, as these factors do not appear to be correlated with sales per sq. ft. Instead, the company should focus on opening new restaurants in areas with higher median incomes, as this factor appears to be positively correlated with sales per sq. ft.

Loyalty Card Program

The analysis found that there is a positive correlation between loyalty card usage and sales growth. This suggests that the loyalty card program is an effective marketing strategy. It is recommended that Pastas R Us continue to promote its loyalty card program and encourage customers to use it.

Market Positioning

Based on the findings of the analysis, it is recommended that Pastas R Us target younger adults in its marketing campaigns. The data shows that restaurants in areas with a higher percentage of younger residents tend to have higher sales per sq. ft. This suggests that younger adults are more likely to patronize Pastas R Us restaurants.

Local Culture and Communities

Pastas R Us should consider the local culture and communities when developing its market position. For example, the company could develop menu items that are specific to the local cuisine or offer promotions that are tailored to the local community.

Tracking and Evaluating Recommendations

To track and evaluate the effectiveness of the recommendations, Pastas R Us should collect the following data:

Sales per sq. ft.
Loyalty card usage as a percentage of sales
Year-on-year sales growth

This data can be collected by tracking sales data for each restaurant and surveying customers about their use of the loyalty card program.

Conclusion

The findings of this report provide valuable insights into the effectiveness of the current expansion criteria, loyalty card program, and marketing position of Pastas R Us, Inc. By implementing the recommendations in this report, the company can improve its sales performance and achieve its business objectives.

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