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CHAPTER-5

The document provides an analysis of regional sales performance using descriptive analytics, highlighting measures of central tendency and variability across three regions. It identifies the North Region as the highest revenue contributor but with significant sales fluctuations, while the Central Region shows consistent performance but lower sales. Additionally, it offers strategic recommendations for improving customer engagement and optimizing product visibility based on data insights.
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0% found this document useful (0 votes)
3 views17 pages

CHAPTER-5

The document provides an analysis of regional sales performance using descriptive analytics, highlighting measures of central tendency and variability across three regions. It identifies the North Region as the highest revenue contributor but with significant sales fluctuations, while the Central Region shows consistent performance but lower sales. Additionally, it offers strategic recommendations for improving customer engagement and optimizing product visibility based on data insights.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

APPLYING

DESCRIPTIVE
ANALYTICS TO
BUSINESS DATA
STEP 1: DATA ANALYSIS
Regional Sales Performance: Measures of Central Tendency

Measures
North South Central
of Central
Region Region Region
Tendency

Mean P127,500 P105,000 P83,833.33

Median P127,500 P106,500 P83,500

Mode No mode No mode No mode

North Region South Region Central Region


Mean: (120k+115k+130k+125k+140k+135k)/6 = Mean: (95k+100k+105k+110k+108k+112k)/6 = Mean: (85k+80k+90k+88k+82k+78k)/6 =
P127,500 P105,000 P83,833.33
Median: 115k, 120k, 125k, 130k, 135k, 140k Median: 95k, 100k, 105k, 108k, 110k, 112k Median: 78k, 80k, 82k, 85k, 88k, 90k
= (125k + 130k)/2 = P127,500 = (105k + 108k)/2 = P106,500 = (82k + 85k)/2 = P83,500
Dataset
Regional Sales Performance: Measures of Variability
NORTH REGION SOUTH REGION CENTRAL REGION

RANGE 140k − 115k = P25,000 112k − 95k = P17,000 90k − 78k = P12,000

NORTH REGION SOUTH REGION CENTRAL REGION

437,500,000/6 = 208,000,000/6 = 108,833,333.3/6 =


VARIANCE
P72,916,666.67 P34,666,666.67 P18,138,888.89
√72,916,666.67 = √34,666,666.67 = √18,138,888,89 =
STANDARD DEVIATION
P8,539.13 P5,887.84 P4,258.98
INTERPRETATION OF RESULTS
Highest Average Sales: The North Region records the highest average monthly sales at P127,500,
indicating it is the company’s strongest revenue contributor among all regions.
Most Variability: The North Region also shows the highest variability, suggesting that while sales are
high, they fluctuate significantly from month to month.
Performance Consistency: The Central Region demonstrates the most consistent performance, with
relatively stable sales levels over time. In contrast, the North Region, despite its strong sales,
experiences noticeable fluctuations.
Regional Sales Performance: Measures of Variability

NORTH REGION SOUTH REGION CENTRAL REGION

(115k-127,500)² = P156,250,000 (95k-105k)² = 100,000,000 (78k-83,833.33)² = 34,027,738.89


(120k-127,500)² = P56,250,000 (100k-105k)² = 25,000,000 (80k-83,833.33)² = 14,694,418.89
(125k-127,500)² = P6,250,000 (105k-105k)² = 0 (82k-83,833.33)² = 3,361,098.89
VARIANCE (130k-127,500)² = P6,250,000 (108k-105k)² = 9,000,000 (85k-83,833.33)² = 1,361,118.89
(135k-127,500)² = P56,250,000 (110k-105k)² = 25,000,000 (88k-83,833.33)² = 17,361,138.89
(140k-127,500)² = P156,250,000 (112k-105k)² = 49,000,000 (90k-83,833.33)² = 38,027,818.89

TOTAL P437,500,000 P208,000,000 P108,833,333.3


STEP 2: DATA VISUALIZATION
a. Line Graph (Sales Trend By Region)
b. Bar Graph (Total Sales By Product)

• Product A: 50 + 40 + 30 = 120
• Product B: 70 + 55 + 50 = 175
• Product C: 30 + 35 + 20 = 85
• Product D: 60 + 50 + 40 = 150
b. Pie Chart (Product Contribution in the North)
Total North Region Product Sales
50+70+30+60 = 210

Percentage Contribution
• Product A: (50 ÷ 210) × 100 = 23.81%
28.57% 23.81%
• Product B: (70 ÷ 210) × 100 = 33.33%
• Product C: (30 ÷ 210) × 100 = 14.29%
• Product D: (60 ÷ 210) × 100 = 28.57%

14.29%
33.33%

Product A Product B Product C Product D


ANSWERS:

Trends and Patterns Noticed:


North Region consistently leads in overall sales.
Product B demonstrates the strongest and most consistent performance
across regions.
The Central Region records comparatively lower sales levels.

Most Product Contributed to Revenue: Product B generates the highest


total revenue, making it the company’s top-performing product.

Decision-making:
- Quickly identify high-performing regions and products
- Prioritize investment and marketing efforts.
- Address underperforming areas.
STEP 3: CROSS-TABULATION ANALYSIS

Customer Traffic: Total Visit Per Time of Day


Days Morning Afternoon Evening Total

Monday 50 70 90 210

Tuesday 45 60 85 190

Wednesday 55 65 95 215

Thursday 60 75 100 235

Friday 65 80 110 255

Saturday 70 85 120 275

Sunday 60 90 130 280

TOTAL 405 525 730 1,660


ANSWERS:
a. Time period with the highest customer visits:
- The evening time period records the highest total number of customer visits
across the week.
b. Day with the most customer visits:
- Sunday experiences the highest overall customer.
C. Business recommendations:
• Business should allocate more staff and resources during evening hours
and weekends to meet higher demand and improve service quality
• Targeted promotions or extended operating hours during peak periods
could further maximize revenue, while lower-traffic periods (such as
weekday mornings) may be used for operational tasks, staff training, or cost
optimization.
STEP 4: TRENDS AND PATTERNS ANALYSIS

Trend and Pattern Analysis: Regional Performance

Consistent Performance Declining or Variable Performance


North Region: Strong and relatively stable sales Central Region: Sales show a declining trend (₱85K -
(₱115K - ₱140K) over six months, a reliable revenue ₱78K), indicating underperformance and potential
driver. market challenges. This region requires immediate
South Region: Steady moderate growth (₱95K - intervention.
₱112K), demonstrating consistent engagement.

Implication: Leverage the North and South regions' stability, while focusing on a turnaround strategy for the Central Region.
Trend and Pattern Analysis: Product & Customer Traffic
Product Performance Customer Traffic Trends
Implication: Products B and D are flagship offerings; Products A and C Implication: Strategic scheduling of staff and promotions during peak
need promotional support, especially in the Central Region. times will maximize sales and customer experience.

Consistent
Product B: High sales across all regions (North: ₱70K, South: ₱55K, Central: ₱50K).
Product D: Steady performance, strong in North.

Variable/Declining
Product A: Moderate sales, weaker in Central.
Product C: Lowest sales overall, significant underperformance in Central.

Consistent Variable
Daily visits increase from morning to evening, peaking on Sunday Weekday mornings have lower footfall, indicating opportunities for
evenings. off-peak growth.
Strategic Recommendations: Driving Growth & Efficiency
Leveraging data insights, we propose targeted strategies for regional, product, and customer engagement.

Regional Focus Product Strategy Customer Engagement


North: Uplevel premium offerings, Product B & D: Expand visibility, Optimize staffing/promotions during
loyalty programs. highlight as best-sellers. evenings/weekends.
South: Localized promotions for Product A & C: Offer discounts, Encourage weekday traffic with
incremental growth. bundles, and product awareness loyalty incentives and special events.
Central: Implement marketing campaigns; gather customer Implement digital engagement
campaigns, regional discounts, and feedback. strategies like online pre-orders.
investigate challenges.
STEP 5: REFLECTION
Reflections: Data-Driven Decision Making
Descriptive statistics, visualizations, and trend analysis are powerful tools for business success.

1 2 3

Understanding Past Performance Communicating Insights Visually Supporting Better Decision-


Descriptive statistics (mean, median, range) Visualizations (charts, graphs) translate Making
provide a clear snapshot of historical data, complex datasets into intuitive formats, Analyzing trends provides a forward-
helping to identify patterns, trends, and making it easy for non-technical looking perspective, uncovering growth
anomalies efficiently. This allows for quick stakeholders to grasp key insights. This opportunities and problem areas. This
identification of strong revenue drivers and simplification fosters consensus and enables businesses to move from reactive
areas needing intervention. enables timely, informed decisions. to proactive strategies, aligning decisions
with revenue growth and customer
engagement objectives.
THANK YOU!

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