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COFFEE CHAIN EXERCISE
YOUR VP IS INTERESTED IN WHETHER TOTAL SALES BY PRODUCT TYPE IS IMPACTED BY
MARKET SIZE? WHAT IS YOUR CONCLUSION? WHAT TYPE OF CHART DID YOU USE? WHY?
The graph displayed is a clustered bar chart that compares sales of different product types across two different market sizes: Major Market and Small Market. The products are categorized into Coffee, Espresso, Herbal Tea, and Tea. Here's what we can observe from the chart:
- Coffee: Has the highest sales in both Major and Small Markets compared to the other products. The Major Market shows significantly higher sales than the Small Market.
- Espresso: Shows a similar pattern to Coffee, with the Major Market outperforming the Small Market in sales. However, the sales are slightly higher than those of Coffee.
- Herbal Tea: The sales in the Major Market are less than those of Coffee and Espresso but are still higher than the sales in the Small Market.
- Tea: The sales in both markets are almost equal, which is different from the other products where the Major Market has higher sales. The colors blue and orange represent the Major Market and Small Market, respectively. The vertical axis represents sales, and the horizontal axis represents the product type by market size. The chart also indicates that it's showing the sum of sales for each market size broken down by product type. The color shows details about Market Size, with blue indicating Major Market and orange indicating Small Market. We can conclude that Coffee is the best-selling product in both market sizes, with all products showing higher sales in the Major Market except for Tea, which has comparable sales in both market sizes. Based on the clustered bar chart provided, the conclusion is that market size does impact total sales by product type, with one notable exception. For Coffee, Espresso, and Herbal Tea, the Major Market consistently shows higher sales than the Small Market. This trend suggests that these product types benefit from being sold in a larger market, likely due to a larger customer base or more robust distribution channels. However, for Tea, the sales are nearly equal in both Major and Small Markets, indicating that for this product type, market size does not have a significant impact on the total sales. The type of chart used is a clustered bar chart. This chart was chosen because it effectively compares the sales figures of different product types across two distinct categories of market size. It allows for a clear visual comparison and helps in quickly identifying patterns and differences in sales data between the two market sizes for each product type. Clustered bar charts are particularly useful for this type of analysis because they display multiple data groups alongside each other, which makes it easier to compare these groups directly. WHICH PRODUCT TYPES ARE DOING BETTER IN SMALL MARKETS VS. LARGE MARKETS? WHY DO YOU THINK THIS IS THE CASE? Coffee In Major Markets, there is a significantly higher volume of sales for Coffee compared to Small Markets. Possible Explanations: Busy Lifestyle: Major Markets often correspond to urban areas with a bustling lifestyle where people are more likely to rely on coffee as a quick energy boost. Coffee Shops: Major Markets might have a higher concentration of coffee shops and cafes, making coffee more accessible and popular. Espresso:
In conclusion, the observed trends suggest that market size does impact the sales of these products, but the specific reasons behind these variations are likely influenced by a combination of factors related to consumer behavior, lifestyle, culture, and market dynamics. Further research and analysis would be necessary to gain a more precise understanding of these dynamics and inform targeted marketing strategies. HOW ARE TOTAL SALES RELATED TO TOTAL PROFIT BY PRODUCT TYPE? WHICH PRODUCT TYPE HAS THE HIGHEST PROFIT? HIGHEST SALES? Total Sales and Total Profit Relationship: The chart shows two sets of bars for each product type, representing Sales and Profit respectively. Generally, we would expect that higher sales would lead to higher profits; however, this relationship also depends on the cost structure and pricing of each product. Highest Profit: From the lower set of bars, which represent profit, Espresso has the highest profit among the four product types. Highest Sales: From the upper set of bars, which represent sales, Coffee appears to have the highest sales. The data suggests that while Coffee has the highest sales, Espresso generates the most profit. This could imply that Espresso has a better profit margin than Coffee, even though it sells less. It's important to note that high sales do not necessarily equate to high profit, as the profit margin can vary significantly between different product types due to factors such as production costs, selling price, and consumer demand.
YOU WANT TO FIND OUT MORE ABOUT BUSINESS IN CALIFORNIA. SHOW PROFIT MARGIN
AND PROFIT BY PRODUCT AND PRODUCT TYPE. IN WHICH PRODUCT/TYPE IS THE COMPANY
LOSING MONEY IN CALIFORNIA?
Amaretto (Coffee): This product shows a negative profit, indicated by the red bar below the zero line on the Profit axis. Decaf Irish Cream (Coffee): Like Amaretto, this product also has a negative profit, as shown by the red bar below the zero line. These products are not generating positive returns, implying that the costs associated with selling these types of coffee in California are exceeding the revenue they generate. The company may need to investigate the reasons behind these losses, such as high production costs, low sales volume, or pricing strategies, and consider actions to mitigate the losses. PRODUCT MANAGER RESPONSIBLE FOR COFFEE IS INTERESTED IN SALES OF COFFEE ACROSS ALL THE STATES. WHICH STATE HAS THE HIGHEST COFFEE SALES? SHOW IT ON A GRAPH. WHAT ARE THE TOP 5 STATES FOR COFFEE SALES?
Highest Coffee Sales: California has the highest coffee sales among all states, as can be seen in all three graphs. Top 5 States for Coffee Sales: The top five states with the highest coffee sales are:
- California
- New York
- Illinois
- Colorado
- Texas These insights can be visualized on any of the three types of graphs provided. However, the bar chart titled "Coffee Sales by states" provides the clearest and most direct comparison of sales figures across states, with each bar's height representing the total sales of coffee in that state. This bar chart would be the most effective way to present the information to the product manager interested in the sales of coffee across all states.
- Sales Concentration: The choropleth map shows that certain states, like those on the West Coast (California, Oregon, and Washington) and the Northeast (New York and possibly Pennsylvania), have darker shades, indicating higher sales of coffee. This could suggest a higher demand for coffee in these areas or a larger number of coffee shops and retailers.
- Regional Trends: The South and the central Midwest regions exhibit lighter shades on the choropleth map, suggesting lower coffee sales. This could reflect cultural preferences, differences in population density, or less market penetration by coffee retailers.
- Comparative Analysis: When comparing the two maps, it becomes evident that some states with smaller land areas, like those in the Northeast, still have significant coffee sales, as indicated by the size of the circles on the proportional symbol map. This might imply a high coffee sales density in these regions.
- Data Outliers: The proportional symbol map can help identify outliers more clearly than the choropleth map. For instance, Texas has a large land area, but the size of its circle is not proportionally large, indicating that its coffee sales volume per unit area might be lower than in more densely populated states.
- Sales Volume: The legend on both maps indicates that the scale for coffee sales ranges from 3,655 to 24,698. This range allows for a comparative analysis of low versus high sales volumes across states. For example, a state represented by a circle close to the smallest size on the proportional symbol map would have sales close to 3,655, while a state with a circle close to the largest size would approach sales of 24,698.
- Potential Market Opportunities: States with lighter colors on the choropleth map or smaller circles on the proportional symbol map may represent potential market opportunities for increased coffee sales. Companies may target these areas for expansion or increased marketing efforts.
- Product Type: The data is filtered on product type, which is coffee. This means that the sales data is exclusively for coffee and not for any other products, providing a focused insight into the coffee market specifically. By studying these visualizations, stakeholders such as coffee shop chains, suppliers, and market analysts can make informed decisions on where to focus their efforts, whether it's to bolster sales in high- performing states or to tap into unexplored markets in regions with lower sales. These maps also provide a geographical context to data, highlighting how location and regional preferences can significantly impact sales volumes. LOOK AT PROFIT BY REGIONS (MARKET) BY PRODUCT TYPE AND PRODUCT. CAN YOU IDENTIFY A REGION WITH A NEGATIVE PROFIT? WHAT DO YOU THINK IS CAUSING IT? WHICH PRODUCT AND/OR STATE IS THE MAIN CAUSE?
The main cause of the negative profit in the Central region seems to be tied to a few specific product types. The red bars, which indicate a loss, are associated with the products "Herbal Tea" and "Decaf Irish Cream." These two products show the most significant negative profits and are likely contributing heavily to the overall loss in that region.
