Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

as a sales manager , you will use statistical methods to support actionable business decisions for Pastas R Us, Inc., a fast-casual restaurant chain specializing

as asales manager, you willuse statistical methods to support actionable business decisionsfor Pastas R Us, Inc., a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. In simpler terms, you are reviewing available information to determine if what your company is doing works. In this assessment, you usepredictive and qualitative analysisskills to create a report for the executive team from available Pastas R Us, Inc. data about the effectiveness of the current expansion criteria, loyalty card program, and marketing position.

Scenario

Since its inception, the Pastas R Us business development team has favored opening new restaurants in areas that satisfy the following demographic conditions within a 3-mile radius:

  • Median age is between 25-45 years old.
  • Household median income is above the national average.
  • At least 15% of the adult population is college educated.

Last year, the marketing department rolled out a loyalty card strategy to increase sales. Under this program, customers present their loyalty card when paying for their orders and receive some free food after making 10 purchases.

The company has collected data from its 74 restaurants to track important variables such as average sales per customer, year-on-year sales growth, sales per sq. ft., loyalty card usage as a percentage of sales, and others. A key metric of financial performance in the restaurant industry is annual sales per sq. ft. For example, if a 1,200 sq. ft. restaurant recorded $2 million in sales last year, then it sold $1,667 per sq. ft.

Preparation

Analyze thePastas R Us chartsfile for your report, including the scatter plots and regression equations for the following pairs of variables:

  • "Sales/Sq.Ft. ($)" versus "Bach. Degrees (%)"
  • "Median Income ($)" versus "Sales/Sq.Ft. ($)"
  • "Median Age (Years)" versus "Sales/Sq.Ft. ($)"
  • "Loyalty Card (%)" versus "Sales Growth (%)"

Assessment Deliverable

Analyze predictive and qualitative analysis reportof Pastas R Us, Inc. that includes the following sections: scope and descriptive statistics, analysis, and recommendations and implementation.

Section 1: Scope and descriptive statistics

  • State the report's objective.
  • Discuss the nature of the current data. What variables were analyzed?
  • Summarize your descriptive statistical findings from Week 1.

Section 2: Analysis

  • Interpret the scatter plots and designate the type of relationship (increasing/positive, decreasing/negative, or no relationship) observed in each one.
  • Determine what you can conclude from these relationships. You may include a copy of each chart in your report, but it is not required.

Section 3: Recommendations and implementation

  • Based on the findings, assess which expansion criteria seem to be more effective. Could any expansion criterion be changed or eliminated? If so, which one(s) and why?
  • Based on the findings, does it appear as if the loyalty card is positively correlated with sales growth? Would you recommend any changes to this marketing strategy?
  • Based on the findings, recommend market positioning that targets a specific demographic. (Hint: Are younger people patronizing the restaurants more than older people?)
  • Include how the local culture and communities are represented in your market position in your recommendations.
  • Indicate what information should be collected to track and evaluate the effectiveness of your recommendations. How can this data be collected? (Hint: Would you use surveys/samples or census?)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Section 1 Scope and Descriptive Statistics Objective The objective of this report is to analyze available data from Pastas R Us Inc and provide insights and recommendations regarding the effectiveness ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics A First Course

Authors: David M. Levine, Kathryn A. Szabat, David F. Stephan

7th Edition

9780321998217, 032197901X, 321998219, 978-0321979018

More Books

Students also viewed these Finance questions

Question

need help with 2 and 3 please , thank you

Answered: 1 week ago

Question

Calculate the number of neutrons of 239Pu.

Answered: 1 week ago