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The data came from 126 Whole Foods stores over the 10 weeks between May 4 and July 13. There was a total of 1,386 observ
Variable Definitions
1
2
4
5
6
7
8
9
5
Explanation of GoodBelly Sales Spreadsheet
The data came from 126 Whole Foods stores over the 10 weeks between May 4 and July 13. There was a total of 1,386 observations.
Variable Definitions
Weekly Sales (Volume): The number of units sold per store per week.
Average Retail Price: The average retail price for GoodBelly products per store per week.
Sales Rep: Defined as 1 if the store had a regional sales rep (face-to-face contact) and 0 if the store had only the national sales
to-face contact).
Endcap: Defined as 1 if a store participated in an endcap promotion.
Demo: Defined as 1 if the store had a demo on the corresponding week.
Demo1-3: Defined as 1 if the store had a demo 1-3 weeks ago.
Demo4-5: Defined as 1 if the store had a demo at least 4-5 weeks ago.
Natural Retailers: The number of other natural retailers within 5 miles of each store.
Fitness Centers: The number of fitness centers within 5 miles of each store.
H0: bi = 0
Ha: bi≠ 0
t-value = 1.96168825638007 formula on the regression sheet
The model is not accurate since the SE is 63.69 which is greater than one, but we have to test the significance of the variable
Coefficients Standard Error t Stat Significance
Intercept 298.4881306 16.1830939444 18.44444156215
Average Retail Price -28.5353651 3.95215265838 -7.22020821975 Statically significant
Sales Rep 77.43691364 3.86445275326 20.03826119366 Statically significant
Endcap 305.1021226 9.05573741367 33.69158233149 Statically significant
Demo 111.1328492 7.40369826999 15.01045088341 Statically significant
Demo1-3 73.51717094 4.89538385046 15.01765197298 Statically significant
Demo4-5 67.56981061 6.54197318112 10.3286590665 Statically significant
Natural -1.59416821 1.77640068812 -0.89741476907 Statically insignificant
Fitness -1.01967115 1.08402290015 -0.94063617455 Statically insignificant
R2=0.67 meaning that about 67% of the variation in the demand of products can be explained by the variation in the above in
Forcasting
As shown above the significant variables are the average retail price, the sales rep, endcap, demo, demo 1-3, and demo 4-5 ac
As for the importance of the variables, shown accordingly from great to less important: Endcap, Demo, Sales rep, Demo 1-3, D
3. Since the coefficient of the Endcap is the highest, accordingly the placement of the product within the store affect the sales
Thus, placing the products at the end of the aisle in the stores will lead to more selling with a much faster pace.
4. The other factors that afftect the sales of goodbelly's product are the Demos which demostrated the product and give coup
and the sales representative which are in direct contact (face to face contact) with the customers
I recommend Goddbelly's products management to focus on mainly on the display of the products since it affect the sales, an
but in a lower % to lower the cost for a low signifciant variables and focus on the highest significant variable that leads to mo
profit increase.
5.Suggestions:
5.1. Remove the statically insignficant coefficients
5.2. Try to find other independent variables (new factors) not included in this model that might affect the quantity sold,
and we should add them to the regression model in order to improve and refine it and to increase the R2.
1.01FC + 63.69
to test the significance of the variables to validate the relationship between the dependent and independent variables.
Reason of significance Remarks
cap, demo, demo 1-3, and demo 4-5 accordingly they passed the t -test
Endcap, Demo, Sales rep, Demo 1-3, Demo 4-5, Average retail price.
roduct within the store affect the sales positively and signficantly.
with a much faster pace.
emostrated the product and give coupons for customers to try the product (marketing/promotion)
he products since it affect the sales, and regarding the demos it can be done
st significant variable that leads to more selling and more revenues,
Regression Statistics
Multiple R 0.820143442197578 t critical
R Square 0.672635265779692
Adjusted R Square 0.6707333646368
Standard Error 63.6930252457665
Observations 1386
ANOVA
df SS MS F
Regression 8 11477979.249533 1434747.40619162 353.664683516014
Residual 1377 5586215.61724696 4056.80146495785
Total 1385 17064194.8667799
Significance F
0