Memo

To: RGV INC.

From: Adali Cantu

cc: Dr. Rachel Sale

Date: April 19th, 2022

Re: Revenue Assessment

Thank you for the opportunity to assess your sales date to provide a recommendation to
increase sales for your business. The analysis and recommendations below are based
on the data you provided, for years 2004 through 2006 and solely based on data for this
timeframe alone. Therefore, my recommendations should be tempered by your
knowledge of business realities and your market.

Please let me know if I can answer any questions concerning the analysis or the
recommendations provided.
Analysis 1: Percent of Sales Minus Discount by Employee

Based on the data provided by your organization. We created a pie chart to

demonstrate the percentages of the organizations total sales by each of your
employees. We discovered that the average sales by an employee within the
organization is approximately 13%. The employee with the highest percent in sales was
Margaret with a 26% and the lowest performers where Anne and Steven with 6% and
Michael with an 8%.

Figure 1
Percentage of employee sales after discounts

Sum of Discount Level by Employee

6%
21% 6%
8%
9%
14%
11%
13% 12%

Anne Steven Michael Andrew Robert Laura Janet Nancy Margaret

Note: Data provided by Instructor

Recommendation

Based on the observations, we see that there is a major difference in sales

percent within the employees. Based on the data provided it is unclear if there are other
indicators that may have impacted the percent of the employee’s performance such as
employee status (FT/PT/ Temp). Moreover, Incentivizing performance would be a good
approach by setting sales goals or rewarding the top performers by month to motivate
employees to reach goals. This would also help bring those that are not meeting
favorable sales to align with current top performers, drive consistency with the
expectation and maximize sales for the organization.

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Analysis 2: Revenue by Country

Based on the data analyzed, we were able to scale the countries your organization
services by sales volume. The data reflects that a good portion of your sales with
makes up 37% of total sales between USA and Germany. The are seven other
countries which consist of Finland, Spain, Italy, Portugal, Argentina, Norway, Poland
with sales under $20,000. The average sales per country is $64,498.

Figure 2: Data Chart

Sales by Country
Poland
Argentina
Italy
Finland
Switzerland
Belgium
Ireland
UK
France
Austria
USA
$0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 $300,000.00

Recommendation

Based on the data chart above, although sales are good in USA and Germany,
the recommendation would be to expand on the top selling items within the countries
below average sales in maximize business. Review the company offerings with those
countries to rethink the marketing strategy and compare to what the competitors in this
market are doing to attract new business and drive sales growth. Investing in a new
marketing campaign may be costly but with the right approach it can pay for itself and
reposition the organizations to new growth levels which increases profitability.

Analysis 3: Revenue by Quarter

Based on the sales data provided for the years between 2004 and 2006. We
were able to organize the information to reflect trends with sales by quarters within each
year. The first quarter of the fiscal year in 2004 reflects that the organization has soft
sales with $56,923 as months progress business started to strengthen by second

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quarter in 2005 with $156,027in sales. By the first quarter of 2006 the organization has
reached the highest it’s been in two years at $278,889.

Figure 3: Line Graph

Revenue by quarter.

$300,000.00
$278,889.62
$250,000.00 $256,931.48

$200,000.00
$184,667.00
$150,000.00 $155,217.00$156,027.49
$143,588.50
$122,214.40
$100,000.00

$50,000.00 $56,923.10

$0.00
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2004 2005 2006
Total

Recommendation

In quarter three sales slightly decreased impacting the increase trend. It is

recommended to determine the possible reasons whether they were controllable or non-
controllable that may have contributed to the negative impact on sales. Knowing the
root causes for the decline can help plan to offset setbacks. Moreover, if in your
research you discover there were not obvious setbacks and it was just a slow season,
then the recommendation would be to plan a strategic marketing campaign to bring
excitement to your business to attract customers or drive a friendly competition amongst
employees to drive sales and incentivize their efforts or contributions.

Analysis 4: Revenue vs. Discount Level by Category

The chart below shows the trend between the sales of each category the
company has and the discount level that was offered on each item. We determined that
the beverage category has the highest sales $ 286,526 in sales and the biggest
discount level at close to 25%. We also determined that grains and cereals had the
lowest sales with $100,726 to include the lowest level of discount.

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Figure 4: Bar Graph
Revenue vs. Discount by Category

Revenue vs. Discount by Category

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200000
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Recommendation

Given the results of the data provided, Beverage and Dairy categories are the top
categories driving the business. It would be recommended to focus on poor performing
categories by strategically promoting those items within peak seasons or promote
discounts to generate sales. Selling items at a discount may not sound enticing as it
reduces margin, but it will attract business and if this approach is applied to new items
or slow selling items to establish a rate of sale, then you can scale back on discounts
because your customer has already been introduced to the items and will buy them
because they like the product which improves sales and increases bottom line.

Analysis 5: Revenue vs. Discount Level by Country

The data was also used to see a correlation between the discount level and sales by
country. This information indicates that the USA and Germany are the countries
contributing the highest sales for the organization. It was also determined that USA and
Germany have the highest discount levels compared to other countries. The graph
compares both trends in the same points displaying a correlation between them.

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Figure 5:
Revenue vs. Discount by Country

Revenue Vs. Discount Level by Country

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1400000
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800000
600000
400000
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Sum of Discount Level Sum of Total revenue

Recommendation

Based on the data, USA and Germany are the top countries contributing to sales and
offering discounts. Offering a discount had proven to generate sales in contrast to
those that are not currently offering discounts. It is recommended to apply the same
approach with the low preforming countries to increase business and generate sales
growth.

Analysis 6: Percentage of Category Sales

The data analysis demonstrates the percentage of each category sold within
three years. The top categories were Beverages and Dairy. Following the Meat/Poultry,
Confections with a 13% each. The chart below demonstrates categories with low sales
to include Produce, Grains/ Cereals and Condiments.

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Figure 6: Pie Graph
Sales Percent by Category

Sales Percent by Category

Seafood
11% Beverages
Produce 21%
8%

Meat/Poultry Condiments
13% 8%

Grains/Cereals Confections
7% 13%
Dairy Products
19%

Beverages Condiments Confections Dairy Products

Grains/Cereals Meat/Poultry Produce Seafood

Figure 7: Tables
Revenue by Category

Category Name Sum of Sum of Total Revenue

Beverages Total $286,526.95
Condiments Total $113,694.75
Confections Total $177,099.10
Dairy Products Total $251,330.50
Grains/Cereals Total $100,726.80
Meat/Poultry Total $178,188.80
Produce Total $105,268.60
Seafood Total $141,623.09
Grand Total $1,354,458.59

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Revenue by Products within Category
Category Name Product Sum of Total revenue
Grains/Cereals Gnocchi di nonna Alice $45,121.20
Wimmers gute
Semmelkn?del $23,009.00
Singaporean Hokkien Fried
Mee $9,332.40
Ravioli Angelo $7,807.80
Gustaf's Kn?ckebr?d $7,232.40
Tunnbr?d $4,840.20
Filo Mix $3,383.80
Grains/Cereals Total $100,726.80
Produce Manjimup Dried Apples $44,742.60
R?ssle Sauerkraut $26,865.60
Uncle Bob's Organic Dried
Pears $22,464.00
Tofu $8,630.40
Longlife Tofu $2,566.00
Produce Total $105,268.60

Recommendation
Based on the data analyzed, the two categories with the lowest sales were grains/
cereals and produce. With those categories there were several items Filo mix and
long-life Tofu had the least revenue from other products. We will recommend
researching the market area to identify If the items cater to the clientele within the area,
you are service. Increasing marketing on these two items to help drive exposure to this
item, maybe conduct demos or offer discounts within locations to encourage sales. If
the marketing, price reductions or sampling suggestions do not render success, it would
be recommended to discontinue low performing products in those locations and expand
where it is selling well.

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Self-Assessment
Upon concluding this project, I have learned that data is a vital piece of any
busines and how we use it can determine the success you are seeking if the information
is used appropriately. Once data is analyzed and compiled, I have confirmed that using
data to make informed decisions is critical and can drive confidence with the decisions
that are made daily that may impact the business and we serve within the community.
The use of technology and visual graphs can simplify the data needing to be interpreted
to reflect business successes and opportunities and share the details with all those that
need to know of this information within the organization. Once sharing the information
presented leadership can apply strategies to improve and measure progress as needed
to meet organizational objectives.