Question

How would you assess the impact of weather on consumer spend last winter?

Answer the following based on the above question:

1. Assumptions - To frame the problem
2. Analysis Methodology - To explain your analysis approach and chosen analytics techniques
3. Expected Results and Findings
4. Recommendations – Based on expected results and findings
5. Potential Limitations inherent in the approach

Answer 1

Assumption: This block does not have good departmental store and the residents of this block have to go to the shops in the next block to buy groceries. Also, the residents of this block are mostly baby boomers who like store shopping more than online grocery shopping.

Analysis Methodology: Porter’s 5 forces model can be used to do the analysis.

• Buyer Power – Identify the residents of the block. Study their demographics. Analyze their age, gender, spending capacity, spending nature, etc.
• Threat of Substitution – Figure out the different modes used by the residents under study, for grocery shopping. Which nearby stores do they go to? Are their people who want home delivery option?
• Supplier Power – Can a supply chain of grocery products be accessible to this block of neighborhood?
• Threat of new entry – Is there any other party thinking of opening a grocery store here? Are there real estate available to open more shopping complex in this block?
• Competitive rivalry: Figure out the nearby grocery shop and observe the range of products and services being offered. Do they have home delivering facility? Do they offer discounts on products, etc. Competition analysis is very critical before launching any new business.

Based on the key findings of the above analysis, recommendations can be formed. If major findings are favorable for this block, grocery shop can be opened in the vicinity.

Potential Limitations to this approach:

• We need to further study the retail compatibility of the block which is not catered to in the above analysis