Tableau Coffee Chain Exercise - Hita Prem (1)

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School

Wright State University *

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7100

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Marketing

Date

Apr 3, 2024

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pdf

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Uploaded by hita1996

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:

Like Coffee, Espresso also shows higher sales in Major Markets. Possible Explanations: Urban Demand: Espresso, being a concentrated form of coffee, may be favored in urban environments where people have hectic schedules and prefer stronger caffeine options. Herbal tea: Sales in Small Markets are slightly less than those in Major Markets, but the difference is not as pronounced as with Coffee and Espresso. Possible Explanations: Broader Appeal: Herbal Tea, with its perceived health benefits and diverse flavors, may appeal to a wider range of consumers, including those in Small Markets. Health Consciousness: Smaller markets may have a more health-conscious consumer base that appreciates the herbal and natural qualities of these teas. Tea: Sales figures for Tea in Small Markets are closer to those in Major Markets compared to Coffee and Espresso. Possible Explanations: Universal Appeal: Tea, in its various forms (green, black, herbal), often enjoys a universal appeal, transcending market sizes. Cultural Preference: In some regions, tea might have a strong cultural significance, making it a popular choice even in smaller markets. It's important to note that the reasons behind these trends are likely complex and multifaceted, and a comprehensive market analysis would be needed to pinpoint the exact factors driving these variations in sales across product categories and market sizes. Such an analysis could involve: Demographic Factors: Studying the demographics of Major and Small Markets to understand consumer preferences and lifestyles. Competitive Landscape: Examining the presence of competitors and the marketing strategies employed in each market. Cultural Factors: Investigating cultural differences and preferences for certain beverages. Pricing and Promotion: Analyzing pricing strategies and promotional activities in different markets.

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 SAL E S? 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.

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