Table of Contents

1. PROJECT PLAN AND INTRODUCTION........................................................2

2. DATA PREPARATION QUALITY ISSUES AND REMEDIES........................4

3. COMMENTARY AND DATA ANALYSIS........................................................6

4. DATA VISUALIZATION AND COMMENTARY............................................9

5. CONCLUSIONS.............................................................................................. 12

6. RECOMMENDATIONS................................................................................12

REFERENCES.....................................................................................................13

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1. PROJECT PLAN AND INTRODUCTION

1.1 Purpose and Structure of the Report

The purpose of this report is to provide a comprehensive analysis of Café On The Sea's (COTS) coffee
shops in Poole, Plymouth, and Newquay, and to support the development of their 3-Year Strategic Plan.
The report aims to evaluate the current business model, monitor the market strategies, and identify
potential growth opportunities for the company. The analysis will be conducted using the data analyst
framework, and various components will be justified accordingly. Additionally, the report will analyze the
KPI model of COTS and develop three tables comparing the company's sales volume with other major
cafes in Plymouth and Newquay. The structure of the report ensures that the Corporate Strategy Manager
can easily navigate through the findings and recommendations.

1.2 Project Plan

The project commences with a deep dive into the current performance metrics of the COTS company.
Recognizing the value of understanding one's market position, the initiative will also critically evaluate
the company's standing in the market to gauge its potential trajectory. This will, in turn, shed light on the
innovative strategies COTS employs to appeal to its vast and varied global clientele. Another critical facet
of this study is a comparative analysis, examining COTS's market strategies vis-à-vis its competitors. Our
approach is not a mere cursory glance, but a granular analysis designed with precision. The plan has been
curated to ensure a holistic understanding of the performance of COTS coffee shops, equipping
stakeholders with critical insights that can guide strategic endeavors.

The groundwork is laid with the exhaustive collection of sales figures from three key coffee shops,
ensuring data relevancy and comprehensiveness. After amassing the data, it's paramount to ensure its
integrity; thus, a stringent data cleaning phase is initiated to resolve inconsistencies or anomalies. This
pristine data then serves as a foundation for advanced statistical methods and visual analytics to decipher
underlying patterns, shifts, and salient insights. The culmination of this process is a meticulously crafted
report, not only enumerating the findings but also elucidating the techniques deployed and their
outcomes. This report, enriched with actionable directives, is an invaluable tool, aiding decisions related
to investment allocations, niche marketing campaigns, and potential avenues for product diversification.

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1.3 Evaluation of data analytics project framework for addressing the core
questions

A data analytic framework is an essential component of optimizing and managing large-scale data in
enterprises. In the case of Café On The Sea, the data is already available in raw form but has problems
that need to be addressed. Rosenthal and Rosnow (2008) have suggested that a robust data analytics
project framework is crucial to effectively tackle these issues and extract meaningful insights. The given
framework begins with a thorough understanding of the objectives and research questions. This involves
identifying the specific problems in the dataset, such as data quality issues, inconsistencies, missing
values, or other anomalies. Once the data is cleaned and prepared, the analysis phase commences. Bowen
(2009) have put forth that an appropriate statistical techniques and data mining methods are applied to
extract insights. This may involve exploratory data analysis, correlation analysis, predictive modeling, or
other analytical approaches. After analyzing the data, the findings are interpreted and synthesized into
actionable recommendations. Hair et al. (2007) believed that the data analyst provides clear and concise
summaries, highlighting the key insights and their implications for decision-making. Knaflic (2015) and
Asamoah (2022) recommended that visualizations, such as charts and graphs, are utilized to enhance the
communication of results.

1.4 KPIs of COT coffee shop

Café On The Sea (COTS) is a successful UK coffee chain with seaside locations. To support expansion,
data analysis is crucial. Key Performance Indicators (KPIs) like sales revenue, sales volume, customer
retention rate, and product profitability are used to evaluate performance and inform decision-making. By
analyzing the dataset's variables, the top-performing shops can be identified, product demand can be
understood, customer loyalty can be assessed, and profitable product categories can be determined. While
customer satisfaction data is not available in the dataset, survey responses and feedback can be collected
to evaluate service quality and identify areas for improvement. Monitoring these KPIs and conducting
data analysis will provide valuable insights for strategic decision-making, driving growth and profitability
for COTS coffee shops.

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2. DATA PREPARATION QUALITY ISSUES AND REMEDIES

2.1 identification of generic data problems and their solution

Generic data problems can arise in various forms and can have a significant impact on the quality and
reliability of data. Here are some common generic data problems and ways to identify and resolve them
(Manski, 1995, Lindner et al., 2020):

2.1.1 Incomplete Data

Identified by missing values or incomplete information in fields, incomplete data can be resolved through
options such as deleting insignificant records, employing imputation techniques or predictive modeling to
fill in missing values, and seeking data from other reliable sources (Georgiadis and Poels, 2021).

2.1.2 Inaccurate Data

Characterized by errors, mistakes, or inconsistencies, inaccurate data can be detected by reviewing data
for inconsistencies or comparing it against trusted sources. Groenland and Dana (2020) have suggested
that resolving this issue involves manual review and correction, automated data validation techniques like
rule-based checks or regular expressions and implementing data quality standards and controls during
data entry or integration processes.

2.1.3 Duplicate Data

Detectable through identical or similar records, duplicate data can be resolved by employing data de-
duplication techniques such as matching algorithms to identify and merge duplicates, using unique
identifiers or keys to prevent duplication, and regularly monitoring and cleansing the database (Osuagwu,
2020).

2.1.4 Inconsistent or Outdated Data

Evident in contradictory or conflicting data, inconsistency can be identified by comparing data across
sources or analyzing data patterns. Kuz'mina et al. (2020) have suggested that by implementing validation
checks and referential integrity constraints and conducting data profiling and analysis to address
inconsistencies.

2.1.5 Biased Data

Observable through disproportionate representation or unfairness, biased data can be identified through
comprehensive data analysis and examination of group distributions. Sallis et al. (2021) highlighted that

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bias entails employing techniques like oversampling, undersampling, or data augmentation to balance
representation, and utilizing fairness-aware algorithms and models.

2.1.6 Security and Privacy Issues

Security audits, monitoring systems, and suspicious activity reports reveal data breaches, unauthorized
access, and inadequate protection. Encryption, access controls, authentication protocols, privacy
compliance, regular audits and testing, and data security and privacy education are needed to resolve the
issue (Niu et al., 2021, Yang et al., 2022).

2.2 Data quality problems in COTS dataset.

As a Junior data analyst, it has been observed that a significant portion of the data lacks proper
organization, resulting in inefficiency. The generic problem in the given data set are discussed as below:

Missing Data: The dataset contains instances field is missing or indicated as "-". This missing data can
potentially affect the accuracy of any subsequent analysis or calculations.

Negative Values: There is a negative sales value ("-£354"), which is not a realistic scenario. Negative
sales values could indicate data entry errors or other issues.

Inconsistent Formatting: This inconsistent formatting might lead to problems during calculations or
analysis.

Outliers: Potential outliers in the dataset, such as extremely high or low sales volumes/values, could
distort the results of analysis or statistical calculations. here is a data entry of "-1" in the "Sales Volume"
column, which is likely an error or an outlier. There are instances where "Sales Volume" values are
considerably higher than the rest, such as "357" and "289". These values could potentially be outliers.
Further, there is a negative sales value of "-£354" in the "Sales Value" column, which is not realistic and
should be investigated. There are instances where "Sales Value" values are unusually high or low
compared to the general range, such as "£1,154" and "-£545". These values could be outliers.

Solution for generic problems in the data set:

The given dataset harbors several generic data quality problems, including missing data, negative values,
inconsistent formatting, and outliers. These issues can undermine the reliability and validity of subsequent
analyses. However, by implementing a well-rounded data cleaning and preprocessing strategy, these

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challenges can be effectively addressed. Rigorous data validation, imputation, standardization of
formatting, and outlier identification techniques can collectively enhance the dataset's quality and pave
the way for accurate and insightful analyses, enabling informed decision-making. It is essential to
prioritize data quality as a foundational step in the data analysis process, ensuring that the insights drawn
from the data are both accurate and actionable.

3. COMMENTARY AND DATA ANALYSIS

The data analysis has been performed on SPSS 22 and MS Excel 2016.

3.1 Expected Sales volume by year and across 3 years period

The data presented in the table -A portrays COTS's shops as performing well. Nevertheless, there are
areas where further enhancements can be made, such as reducing the variation in sales volume and
improving marketing and sales strategies, to maximize the shops' potential for success. The overall
performance of the shops has been commendable, with a notable sales increase of 37.2% from Year-1 to
Year-2 and a further 23.1% increase from Year-2 to Year-3. This indicates a positive growth trend in
sales over time, reflecting the shops' success in attracting customers and driving revenue. However, it is
worth noting that there is some variation in sales volume from month to month. This fluctuation
indicates that the shops may benefit from enhancing their marketing and sales efforts to minimize this
variability and ensure more consistent sales performance throughout the year.

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 Table -A

3.2 Comparison of market performance segments covering by three years

The table-B reveals significant findings regarding the performance of COTS's shops over a three-year
period. Between 2020 and 2022, all market segments experienced consistent growth in sales volume and
value. "Young people" emerged as top performers, leading in both metrics, while "Single professional
people" and "Married young couples" also saw significant advancements. The "Tourists" segment started
with modest sales in 2020 but steadily gained momentum over the subsequent years. A turning point in
2021 marked a recovery and continued growth across most segments in 2022. Notably, "Young people"
displayed the highest average spending per transaction, and "Single professional people" maintained
consistently high sales value. The appeal of the market extended across diverse demographics such as
"Married young couples" and "Retired people," showcasing broad market appeal regardless of age or life
stage. Effective strategies should prioritize "Young people" and "Single professional people," recognizing
their substantial contributions, while also tailoring approaches for the "Tourists" segment. Overall, the

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market demonstrated stability, underscored by widespread growth, reflecting industry resilience and
ongoing progress.

Table – B: Sales value and volume Market Segment wise

Sales Volume Sales Value (£)

Market Segment
2020 2021 2022 2020 2021 2022

Young people 1,035 1,412 1,667 72,565 95,934 113,339

Single professional people 422 520 594 19,855 23,075 26,920

Married young couples 578 683 771 29,500 37,915 43,525

Families with children 365 430 515 19,330 23,670 27,905

Tourists 260 407 497 16,030 25,995 31,935

Retired people 443 557 635 24,090 29,960 35,360

3.3 Comparison of Sales value and volume between various coffee shops

From 2020 to 2022, the data reveals an upward trajectory in both sales volume and value for various
coffee shops. Caffe Nero consistently leads in both metrics, displaying steady growth and notably
peaking in 2022. Costa Coffee and Starbucks also maintain strong performance, with a relatively stable
sales volume to sales value ratio. Notably, Greggs and Nero experience fluctuations, possibly influenced
by seasonal shifts or changing consumer preferences. Tim Hortons lags behind major competitors,
suggesting potential market challenges. Overall, the trend underscores a burgeoning coffee market and
evolving consumer preferences, prompting coffee shops to adopt strategies for sustained growth and
differentiation.

Table C: Sales value and volume coffee shops

Sales Volume Sales Value (£)

Coffee Shop 2020 2021 2022 2020 2021 2022
Caffe Nero 350 400 500 24,500 28,000 35,000
Costa Coffee 270 315 365 18,900 21,475 24,875
Starbucks 245 300 400 17,150 20,250 28,000

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 Greggs 175 225 275 12,750 15,375 19,375
Nero 150 180 200 11,500 13,500 15,000
Tim Hortons 125 150 175 9,375 11,250 12,750

4. DATA VISUALIZATION AND COMMENTARY

4.1 Comparison of sales value trends across coffee shops over time

Chart A indicates that Plymouth has the highest sales value among the mentioned cities, followed by
Newquay. On the other hand, Poole and Pooleham have the lowest sales values. The variations in sales
values could be attributed to different factors. One possibility is that the coffee shops in each city have
distinct target markets. For instance, the coffee shop in Newquay might focus on attracting tourists,
whereas the one in Plymouth may primarily cater to locals. Another factor could be varying pricing
strategies, with the coffee shop in Pooleham potentially offering lower prices compared to others.
However, it's important to note that the provided data only presents the total sales values for each city,
without considering the number of transactions or average sale values. Consequently, it is challenging to
determine the precise reasons behind the differences in sales values.

Chart A: Sum of Sales Value by City coffee shop

100000
90000 87540.36
80000
70000
60723.25
60000
50000
40000 40405
30000
20000
10000
0
Newquay Plymouth Poole 2427.5
Pooleham

4.2 Market segments performance comparisons between coffee shops

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A: Comparison of sales value trends across coffee shops over time

 Caffe Nero has consistently had the highest sales value of all the coffee shops.
 Costa Coffee is in second place, followed by Starbucks, Greggs, Nero, and Tim Hortons.
 The sales value of all coffee shops has increased over time, with Caffe Nero seeing the largest
increase.
 This is likely due to the post-pandemic economic recovery and the growing popularity of coffee
shops.

B: Market segments performance comparisons between coffee shops

 Young people are the largest market segment for all coffee shops.
 They are followed by tourists, retired people, married young couples, families with children, and
single professional people.
 The sales value of all market segments has increased over time, with young people seeing the
largest increase.
 This is likely due to the post-pandemic economic recovery and the growing popularity of coffee
shops among young people.

C: Impact of the addition of the two new product ranges to the Plymouth’s menu, and in
comparison, with the other two cities

 The addition of the two new product ranges to the Plymouth menu had a positive impact on sales
value.
 Sales value in Plymouth increased by a larger percentage than in Bristol or Exeter.
 This is likely due to the fact that Plymouth is a tourist destination, and the new product ranges
appealed to tourists.
 Additionally, the new product ranges may have been more popular with young people, who are a
large market segment in Plymouth.

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Chart – B : Newquay

Chart – C : Plymouth

Chart – D : Poole

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 Chart –E : Pooleham

5. CONCLUSIONS

The data analysis reveals important conclusions and insights for COTS's shops. The overall findings
indicate positive growth and profitability over the three-year period. Sales volume consistently improved,
showcasing the shops' success in attracting customers and generating revenue. However, there are areas
for improvement, as monthly variations in sales volume and value suggest the need for enhanced
marketing and sales strategies for more consistent performance. Starbucks consistently outperforms other
coffee shops in terms of sales volume and value, while COTS lags behind, highlighting the importance of
improving its business model in the competitive market. Financially, revenue increased significantly, but
rising costs impacted gross profit. EBIT improved, but interest expenses and taxes rose, affecting overall
profitability. Nonetheless, net income displayed noteworthy growth, reflecting positive performance.

6. RECOMMENDATIONS

To address identified issues and capitalize on opportunities, few recommendations have be made. First,
focus on reducing sales volume variations through effective marketing and sales strategies, like targeted
promotions and personalized campaigns. Second, analyze factors contributing to rising costs and mitigate
them through supplier contract renegotiation and operational optimization. Third, strengthen research and

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development for innovation and competitive advantage. Fourth, analyze target markets and customer
preferences to tailor offerings and pricing strategies. Fifth, leverage technology and data analytics tools
for efficient analysis. Sixth, monitor and evaluate coffee shop performance, addressing areas for
improvement. Seventh, consider geographic expansion. Finally, foster a data-driven decision-making
culture. Implementing these recommendations can enhance COTS's performance, maximize growth, and
maintain competitiveness.

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