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MSc Management
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Data-Driven Decisions for Business

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Café On The Sea's Data Driven Decision Making

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BPP School of Business and Technology

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Table of Contents
Introduction.................................................................................................................................................3
DMAIC Framework....................................................................................................................................4
COTS KPIs..................................................................................................................................................4
Task 2: Data preparation quality issues and remedies.................................................................................6
Task 3: Data analysis and commentary.......................................................................................................7
Table A....................................................................................................................................................7
Table B....................................................................................................................................................7
Table C....................................................................................................................................................8
Task 4: Data visualisation and commentary................................................................................................9
Chart A....................................................................................................................................................9
Chart B..................................................................................................................................................10
Chart C..................................................................................................................................................11
Conclusion and Recommendations............................................................................................................11
References.................................................................................................................................................13

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Introduction
Data-Driven Decision Making (DDDM) refers to a process where organizations base their
decisions on the data analytics so that rational and strategic choices can be made. In the view of
Café On The Sea (COTS), DDDM is applying data analytics to evaluate how well the current
strategies perform and what should be done further. This report will analyze the sales value and
volume of three major coffee shops, identify key markets to which effective promotions need to
be directed, assess the impact of new product ranges on revenues in order for COTS through its
3-Year Strategic Plan. It will be featured in the structure of this report that is it would have an
introduction and a project plan, sales analysis based on three coffee shops and a customer study
about targeted promotions , assessment effect new product ranges . The report shall follow the
data analytics framework which includes cleaning, exploratory analysis and also statistical
modeling. Using data analytics, COTS can get more effective insights to improve the marketing
strategies and boost their business in the competitive seaside coffee market.
Project Plan
Peng et al., (2021) stated that the project plan involves four key stages: These include data
collection, data cleansing, exploratory analysis of the collected information and also reporting. In
terms of the COTS project plan, it begins with collecting sales and customer data for the three
designated coffee shops. Second, resolve the data quality issues by cleaning and
preprocessing. Third, carry out an exploratory data analysis to find the trends and
patterns. Finally, compile a comprehensive report addressing the three specified issues: Sales and
the volume analysis, customer segmentation for focused promotions as well as assessment of the
effect by new product ranges are examined. This structured method guarantees a systematic and
very sensible analysis, which serves as the basis for strategic decision-making of COTS.
Project Plan
Tasks 1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month
Planning
Issues with data
Data Analysis
Data Visualization
Recommendations and Results

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DMAIC Framework
The project plan will follow the DMAIC (Define, Measure, Analyze, Improve and Control)
framework which is a systematic approach often used in the data analytics projects. According to
Hohmeier et al., (2022) the Define stage requires clearly defining what is desired for a project
and why, it also required. For the Hilti case, this encompasses providing the research objectives
indicated by Corporate Strategy Manager which include sales and volume analysis, customer
segmentation for targeted promotions and evaluating new product range impact. Defining these
objectives clearly aligns them with the strategic goals of COTS. In the Measure stage, the
researcher will gather appropriate information from three cafes in Poole, Plymouth and
Newquay. These include the sales figures, client profiles and also product range information. The
data collection process should be complete and accurate because the next stage is based on this
information (Moon, 2019).
According to Murdoch et al., (2019) In the analyzing stage, statistical and analytical methods are
used for getting many valuable conclusions. This level encompasses the sales value and also
volume analysis of the three coffee shops; customer segmentation by depicting high-revenue
market segments through shopper study, as well as considerations regarding effects attributed to
new product ranges. EDA will play a very vital role at the Analyze stage to identify many
patterns, trends and correlations within the collected data (Ma et al., 2021). Based on the findings
of this analysis, Blanks (2020) will make some recommendations to enhance the marketing
strategies and also product offerings. Optimizing the stage is devoted to specific promotions,
increase in successful product line or business model change. In order to ensure continuous
improvement, a control plan will be put in the place. It implies establishing controls that can help
in monitoring the continually evolving performance in the form of monitoring sales weekly,
changes to strategies when required and integrating feedback for continuous improvement (Steiss
2019).
COTS KPIs
COTS can use a set of KPIs to measure and improve the performance on the coffee shops. The
following KPIs can be crucial in evaluating success and steering improvements:
As analyzed by Al-Mamary et al., (2020), Sales Revenue is one of the most basic indicators that
deal with measuring the degree to which a financial performance has improved. For COTS, the
better analytics can aid in identifying sales trends to allow the marketing strategies based on

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prices and products to be perfected. Additionally, Kumar and Rajan (2020) assessed that the
customer segmentation recognition and their lifetime helps in understanding the target markets
besides customizing to promotions. Optimizing customer loyalty and lifetime value can be
accomplished using analytics that are personalized enough to identify the high-revenue
segments.
COTS analytics can determine the popularity and profitability of every product, informing
decisions about correct menu optimization. Analysis of the impact of new product ranges can
inform whether expansion to other locations is viable (Noone and Cachia, 2020). By comparing
COTS's performance against competitors, market share can be determined. By means of
continuous monitoring, identifying areas where COTS can gain a competitive edge through
strategic initiatives (Simons, 2019). Furthermore, Kaydos (2020) stated that metrics such as
average transaction time and staff productivity contribute to assessing operational efficiency.
Analytics can identify bottlenecks, enabling process improvements for better customer service
and resource utilization (Abd Rahman, Mohamad and Abdul Rahman, 2021). Leveraging
sentiment analysis and feedback data, analytics can provide insights into customer satisfaction
levels. Identifying areas for improvement in service or product quality contributes to enhanced
customer experiences (Jain, Pamula and Srivastava, 2021).
KPI Description Aim
Sales Revenue Measures the total income Increase sales revenue by 10%
generated from each coffee shop. annually.
Customer Segmentation Identifies and categorizes Increase revenue from
customers based on demographics. targeted segments by 15%.
Lifetime Value Measures the total value a customer Increase average customer
brings over their lifespan. lifetime value by 12%.
Product Performance Evaluates the popularity and Optimize the menu, focusing
profitability of each product. on high-performing items.
Market Share Determines COTS's share in the Increase market share by 5%
market compared to competitors. within the next year.
Operational Efficiency Assesses efficiency metrics like Reduce transaction time by
average transaction time. 10% for enhanced efficiency.
Customer Satisfaction Measures customer satisfaction Achieve and maintain a

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 through feedback and sentiment. satisfaction rate of 90%.
Task 2: Data preparation quality issues and remedies
Kasica, Berret and Munzner (2020) analyzed that data analysts often encounter generic issues in
the process of collecting, integrating, and cleaning data. One common challenge is incomplete
data, where certain records lack information. This can be identified by assessing missing values
and can be addressed by imputation techniques or removing incomplete records (Enders, 2022).
Moreover, Sharma (2022) stated that inconsistent data is also a common challenge, arising from
variations in data formats or units. Standardization and normalization methods help address this,
ensuring uniformity for accurate analysis. Duplicate data requires identification through
matching algorithms and resolution through record reduplication (Ngueilbaye et al., 2021).
Additionally, outliers, or extreme values, distort analysis. Detecting outliers involves statistical
methods, and options include removing, transforming, or imputing these values (Wada, 2020).
Data accuracy issues, such as errors or typos, can be tackled through validation checks and
manual verification (Krichen, 2023). Moreover, data integration problems occur when merging
diverse datasets, leading to inconsistencies. Solutions involve aligning schema, resolving
conflicts, and ensuring data compatibility (Mountantonakis and Tzitzikas, 2019).
Upon reviewing the COTS dataset, several data quality problems have been identified:
 Missing values were identified in the sales records of the COTS dataset, particularly in
sales figures and customer segmentation. Data imputation techniques were implemented
to fill in missing values in the sales records and to ensure a more complete dataset for
analysis.
 Inconsistent formats were observed in the customer segmentation data, leading to
potential difficulties in accurate analysis. To deal with this the formats within the
customer segmentation were standardized to ensure uniformity.
 Duplicate records were identified in the dataset, potentially distorting the accuracy of
sales and customer-related analyses. By utilizing reduplication techniques duplicate
records were removed, ensuring that each entry is unique and contributing to accurate
analysis.
 Outliers in product performance metrics were recognized using statistical methods and
visualizations. Unusual values in sales or customer feedback were used to distort insights
and need careful handling.

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Task 3: Data analysis and commentary
Table A
Column Labels
Sum of Sales Volume Sum of Sales Value Total Sum of Sales Volume Total Sum of Sales Value
Row Labels 2020 2021 2022 2020 2021 2022
1 1218.5 1313 1300 3992.25 4181.25 4244.75 3831.5 12418.25
2 1322.5 1401.5 1456 3269.5 4484.25 4628.25 4180 12382
3 1537 1537 1629.5 4915.75 5010.25 5320.75 4703.5 15246.75
4 1726.5 1915 2023.5 5473.5 6127 6370.75 5665 17971.25
5 1498 1456 1653 4843.75 4236.25 5342.25 4607 14422.25
6 1590.5 1710.5 1819.456 5120.75 5458.75 5558.194 5120.456 16137.694
7 1763 1771 2131.458 5765.5 5708 6724.642 5665.458 18198.142
8 1823.5 1935 2410.606 5906.25 6275.5 7833.294 6169.106 20015.044
9 1502 1591 1871.81 4783 5140.25 5946.85 4964.81 15870.1
10 1519 1650.5 1880.732 4929.25 5364 5963.346 5050.232 16256.596
11 1482 1671.5 1948.802 4638.25 5366 6239.862 5102.302 16244.112
12 1620 1706.5 1863.328 5193.5 4860.75 5879.672 5189.828 15933.922
Grand Total 18602.5 19658.5 21988.192 58831.25 62212.25 70052.61 60249.192 191096.11

This table presents a detailed breakdown of sales volume and value for each coffee shop
spanning the three-year period from 2020 to 2022. The data is segmented into two main
categories: Sales Volume and Sales Value, with subcategories for each year.
 The grand total sales volume increased progressively from 18,602.5 in 2020 to
21,988.192 in 2022, indicating overall growth.
 The total sales value exhibited an upward trend, rising from £58,831.25 in 2020 to
£70,052.61 in 2022.
 2022 stands out as the top-performing year with the highest total sales volume and value.
 Among the three years, the highest sales volume and value were recorded in March 2022.
 Average Monthly Sales Volume (2020-2022) was £5,065.37.
 Average Monthly Sales Value (2020-2022) was £15,877.95.
Table B
Column Labels
Sum of Sales Volume Sum of Sales Value Total Sum of Sales Volume Total Sum of Sales Value
Row Labels 2020 2021 2022 2020 2021 2022
Q1 4078 4251.5 4385.5 12177.5 13675.75 14193.75 12715 40047
Families with children 370 405.5 409 1862 1990.5 2011 1184.5 5863.5
Married young couples 809 947.5 846.5 2013.5 2324.25 2094.75 2603 6432.5
Retired people 809.5 680 920.5 1578 1331 1893 2410 4802
Single professional people 560 679.5 589 1160 1387 1155 1828.5 3702
Tourists 238 263.5 265 1413 1497 1617 766.5 4527
Young people 1291.5 1275.5 1355.5 4151 5146 5423 3922.5 14720
Q2 4815 5081.5 5495.956 15438 15822 17271.194 15392.456 48531.194
Families with children 447 429 504.992 2260 2143 2482.96 1380.992 6885.96
Married young couples 992 920 1129.532 2450 1893 2819.33 3041.532 7162.33
Retired people 845.5 1082 1156.06 1388 2108 2303.12 3083.56 5799.12
Single professional people 715 764.5 844.012 1456 1524 1705.024 2323.512 4685.024
Tourists 298 282.5 299.16 1775 1759 1762.96 879.66 5296.96
Young people 1517.5 1603.5 1562.2 6109 6395 6197.8 4683.2 18701.8
Q3 5088.5 5297 6413.874 16454.75 17123.75 20504.786 16799.374 54083.286
Families with children 462 510 553.598 2333 2537 2686.99 1525.598 7556.99
Married young couples 974.5 1082.5 1353.848 2428.75 2730.75 3408.62 3410.848 8568.12
Retired people 1007.5 995 1319.868 2006 1974 2684.736 3322.368 6664.736
Single professional people 764 788 893.492 1565 1561 1805.984 2445.492 4931.984
Tourists 317 335.5 378.592 1849 1966 2252.552 1031.092 6067.552
Young people 1563.5 1586 1914.476 6273 6355 7665.904 5063.976 20293.904
Q4 4621 5028.5 5692.862 14761 15590.75 18082.88 15342.362 48434.63
Families with children 424.5 435.5 506.4 2158.5 2139.5 2519 1366.4 6817
Married young couples 897 983.5 1123.712 2246.5 1910.25 2714.78 3004.212 6871.53
Retired people 1006 1048.5 1193.434 2021 2100 2365.868 3247.934 6486.868
Single professional people 688 709 866.408 1333 1389 1720.816 2263.408 4442.816
Tourists 277.5 280.5 332.392 1584 1787 2068.352 890.392 5439.352
Young people 1328 1571.5 1670.516 5418 6265 6694.064 4570.016 18377.064
Grand Total 18602.5 19658.5 21988.192 58831.25 62212.25 70052.61 60249.192 191096.11

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This table provides a comprehensive overview of sales volume and value for various market
segments, segmented by quarter and year over the three-year period (2020-2022). Market
segments include Families with Children, Married Young Couples, Retired People, Single
Professional People, Tourists, and Young People.
 The grand total sales volume increased from 18,602.5 in 2020 to 21,988.192 in 2022.
 The grand total sales value increased from £58,831.25 in 2020 to £70,052.61 in 2022.
 Young People emerged as the top-performing segment in 2022, with the highest total
sales of £7,665.90 (Sales Value), Sales volume of 19, 14.48 across all quarters.
 Families with Children maintained a steady performance throughout, with a total sales
value of £6,817.
 Tourists, with a sales value of £766.5 and sales volume of 238 are appeared as lowest in
Q1 2020.
Table C
Column Labels
Newquay Plymouth Poole Total Sum of Sales Volume Total Sum of Sales Value
Row Labels Sum of Sales Volume Sum of Sales Value Sum of Sales Volume Sum of Sales Value Sum of Sales Volume Sum of Sales Value
Q1 4046 12178.5 5772 18478 2897 9390.5 12715 40047
2020 1373 3416.5 1848 5891 857 2870 4078 12177.5
2021 1228.5 4076.75 2021 6402 1002 3197 4251.5 13675.75
2022 1444.5 4685.25 1903 6185 1038 3323.5 4385.5 14193.75
Q2 5142 16326 6756.456 21140.694 3494 11064.5 15392.456 48531.194
2020 1646 5316.5 2082 6588 1087 3533.5 4815 15438
2021 1733.5 5387 2184 6707 1164 3728 5081.5 15822
2022 1762.5 5622.5 2490.456 7845.694 1243 3803 5495.956 17271.194
Q3 5377.5 17323.75 7835.874 25062.036 3586 11697.5 16799.374 54083.286
2020 1602.5 5234.25 2315 7438 1171 3782.5 5088.5 16454.75
2021 1824 5846.75 2318 7469 1155 3808 5297 17123.75
2022 1951 6242.75 3202.874 10155.036 1260 4107 6413.874 20504.786
Q4 4852 14895 7164.362 22859.63 3326 10680 15342.362 48434.63
2020 1452 4611.5 2077 6636 1092 3513.5 4621 14761
2021 1697.5 4860.25 2228 7094 1103 3636.5 5028.5 15590.75
2022 1702.5 5423.25 2859.362 9129.63 1131 3530 5692.862 18082.88
Grand Total 19417.5 60723.25 27528.692 87540.36 13303 42832.5 60249.192 191096.11

This table provides a detailed benchmark comparison of sales volume and value for three coffee
shops – Newquay, Plymouth, and Poole – categorized by quarter and year over a three-year
period. It includes the total sum of sales volume and value for each quarter and year.
 Overall sales volume increased from 19,417.5 in 2020 to 27,528.692 in 2022.
 Total sales value saw an increase from £60,723.25 in 2020 to £87,540.36 in 2022.
 Plymouth led in Q3 2022 with a sales volume of 3,202.874 and a sales value of
£10,155.036.
 Newquay consistently performed well across all quarters and years, contributing
significantly to total sales.
 Q2 consistently showed the highest total sales volume and value across the three years.
 Q1 2020 had the lowest total sales volume and value across all coffee shops.

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  Q3 2022 emerged as the top-performing quarter, with the highest total sales volume and
value.
Task 4: Data visualisation and commentary
Chart A

This graph compares the sales value trends of four different coffee shops: Newquay, Plymouth,
Poole, and City Coffee Shop, over a period of three years from 2020 to 2022. The y-axis
represents the sum of sales value while the x-axis shows the years.
 In 2020 Newquay had a sales value of 18,578.75.
 Plymouth recorded 26,553 in sales in 2020.
 Poole made a total of 13,699.5 in 2020.
 In 2021 Newquay's sales increased to 20,170.75.
 Plymouth's sales decreased to 27,672 but still led among all shops in 2021.
 In 2021 Poole also saw an increase to 14,369.5 in sales.
 In 2022 Newquay’s sales increased significantly to reach a peak of 21,973.75.
 Plymouth’s performance peaked with an impressive jump to a sum of sale value at
33,315.36 leading all other shops by a significant margin in 2022.
 Poole experienced growth as well reaching up to a total sale value of 14,763.5 in 2022.

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Chart B

This graph compares the sales values of different market segments across three coffee shops in
Newquay, Plymouth, and Poole. The segments include families with children, married young
couples, retired people, single professional people, tourists, and young people.
In Newquay:
 Families with children have the highest sales value at approximately £15,000.
 Single professional people follow at around £10,000.
 The other segments are below £5,000.
In Plymouth:
 Families with children lead again at nearly £20,000.
 Single professionals are close to £15,000.
 Retired people and tourists contribute around or slightly above £5,000 each.
In Poole:
 Single professionals dominate at about £25,000.
 Families contribute roughly half of that value.

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Chart C

The graph illustrates the sales values for different market segments in three city coffee shops:
Newquay, Plymouth, and Poole. The X-axis represents various market segments while the Y-
axis shows the count of sales value. The graph compares the impact of the addition of two new
product ranges to Plymouth’s menu with the other two cities.
 Newquay maintains a consistent sales value across all market segments.
 Plymouth sees a peak in sales with families with children at 37, dropping to 35.5 for
married young couples and retired people, rising again to 36 for single professional
people and tourists before dropping to 35.5 for young people.
 Poole’s sales values are consistently at 36.
Conclusion and Recommendations
In conclusion, an analysis of COTS's coffee shop sales performance and operations reveals
several key insights. Issue 1, concerning the identification of the best shops for future expansion
based on sales volume and value, indicates that Plymouth consistently outperforms Newquay and
Poole in both categories. Plymouth, particularly in Q3 2022, showed a substantial increase in
both sales volume and value, making it a strong candidate for future investment and expansion.
Issue 2, focusing on customer analysis to identify the market segments providing the highest
revenue, suggests that in Newquay, families with children are the primary contributors to sales
value. In Plymouth, families with children and single professionals lead in revenue generation,
while in Poole, single professionals dominate. Understanding these preferences can help tailor
marketing strategies and product offerings to maximize revenue from each location.

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Issue 3 revolves around the impact of the two new product ranges (breakfast and healthy snacks)
added to Plymouth's menu. However, the sales value in different market segments of Plymouth
was quite volatile showing diverse effects. A high point in the sales for families with kids was
observed, indicating the positive reaction toward a new inventory. But a general evaluation of the
effect on the shop performance requires more analysis.
Based on these findings, recommendations to COTS's CEO and top management include:
Investment and expansion investments of COTS should be focused primarily on Plymouth,
which consistently showed a positive trend in the sales volume as well as value. This involves
scouting for chances of improving the menu even further and implementing successful ideas
inother points. Additionally, COTS should also customize its marketing strategy to suit the needs
and tastes of each location’s clientele. For example, in Newquay the highlight is family oriented
offers while in Poole target single professionals. An understanding of the local customers can
help to increase customer engagement and result in increased revenue figures. COTS should
perform a deeper analysis about the influence of new products ranges in the Plymouth. This
includes collecting the customer feedback, analyzing sales patterns for a longer timeframe and
evaluating the level of consumer satisfaction. Such insights will also influence the changes in
menu or marketing strategies. COTS can make the organization’s data analytics prowess much
more profound enabling them to have a deep understanding of customer behavior, preferences
and also market trends. Make the real-time data available for the decision making by using
sophisticated analytics tools. This may include training the staff or also hiring data analytics
professionals. COTS should periodically measure and review the success of every coffee shop,
taking effective action where it is appropriate. A comprehensive performance tracking system
can be used to identify the trends and challenges that are emerging early on.

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