Question

Resources: Pastas R Us, Inc. Database & Microsoft Excel®, Wk 1: Descriptive Statistics Analysis Assignment

Purpose

This assignment is intended to help you learn how to apply statistical methods when analyzing operational data, evaluating the performance of current marketing strategies, and recommending actionable business decisions. This is an opportunity to build critical-thinking and problem-solving skills within the context of data analysis and interpretation. You’ll gain a first-hand understanding of how data analytics supports decision-making and adds value to an organization.

Scenario:

Pastas R Us, Inc. is a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. Since its inception, the business development team has favored opening new restaurants in areas (within a 3-mile radius) that satisfy the following demographic conditions:

• Median age between 25 – 45 years old
• Household median income above national average
• At least 15% college educated adult population

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 1200 sq. ft. restaurant recorded $2 million in sales last year, then it sold $1,667 per sq. ft.

Executive management wants to know whether the current expansion criteria can be improved. They want to evaluate the effectiveness of the Loyalty Card marketing strategy and identify feasible, actionable opportunities for improvement. As a member of the analytics department, you’ve been assigned the responsibility of conducting a thorough statistical analysis of the company’s available database to answer executive management’s questions.

Report:

Write a 750-word statistical report that includes the following sections:

• Section 1: Scope and descriptive statistics
• Section 2: Analysis
• Section 3: Recommendations and Implementation

Section 1 - Scope and descriptive statistics

• State the report’s objective.
• Discuss the nature of the current database. What variables were analyzed?
• Summarize your descriptive statistics findings from Excel. Use a table and insert appropriate graphs.

Section 2 - Analysis

• Using Excel, create scatter plots and display the regression equations for the following pairs of variables:
• “BachDeg%” versus “Sales/SqFt”
• “MedIncome” versus “Sales/SqFt”
• “MedAge” versus “Sales/SqFt”
• “LoyaltyCard(%)” versus “SalesGrowth(%)”
• In your report, include the scatter plots. For each scatter plot, designate the type of relationship observed (increasing/positive, decreasing/negative, or no relationship) and determine what you can conclude from these relationships.

Section 3: Recommendations and implementation

• Based on your findings above, assess which expansion criteria seem to be more effective.Could any expansion criterion be changed or eliminated? If so, which one and why?
• Based on your findings above, does it appear as if the Loyalty Card is positively correlated with sales growth? Would you recommend changing this marketing strategy?
• Based on your previous findings, recommend marketing positioning that targets a specific demographic. (Hint: Are younger people patronizing the restaurants more than older people?)
• 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 survey/samples or census?)

Cite references to support your assignment.

Answer 1

Answer : Resources - Pastas R Us, Inc.

Speciality of Restaurant - Noodles, Soups and Salads

Total no. of Restaurants data collected - 74

Information gathered by Marketing Department	Criticality of metric Scale (1-5) 1-least basic measurement	Remarks
Deals per client	5	Important measurement. Shows whether we can create deals per client according to set objective. Target deals is a deal set to accomplish make back the initial investment of every outlet.
YOY deals	3	Not a significant measurement as outlets are accessible close by in 3 Km span. As menu is same, clients could step into different parts of this brand. A month to month or quarterly deals information could be a superior measurement .
Development	4	Month to month or quarterly development is recommended
Deals per Sq Ft	5	Indeed. Each outlet ought to be estimated dependent on squarefeet. To be caught into Yield the board metric. Each of the 74 outlets to be estimated for this. It will drive cost enhancement and operational proficiency.
Dependability Customers	5	Important measurement. Shows if the individuals are faithful or exchanging over to different brands.
Middle Age of clients	3	Not extremely basic as the objective clients for food are not explicit. Since its a F&B outlet, all classes of the demography will be its clients. Anyway the youths may like noodles the most. Be that as it may, this measurement can't be utilized as in contribution for advertising.

Extra Recommendation :-As Pastas R Us, Inc. is a F&B association, they key spotlight ought to be on the best way to improve proficiency of tasks and cost enhancement. As their income originates from deals of Food like noodles, pastas and from hot refreshments like soups, their technique ought to rotate around menu the board.

Food development ought to be a key system to charm the clients. Clients might consistently want to attempt new food things. Henceforth changes in menu ought to be steady. Do a prominence investigation with the food and get rid of variations which are moderate moving. Period of client could be set in opposition to food decision. Anyway this could toss wrong ends as clients at the outlet could purchase food bundles for the older individuals at home. Henceforth the criticality of Median period of clients is evaluated modest as 3.

Pastas R Us, Inc. should freeze on least deal per square feet and get into yield the board in a major manner. This measurement would set clear focuses to be accomplished for the separate outlet to make back the initial investment consistently and be on the development direction.

Deals to be ordered dependent on channels of deals. The channels of deals to be ordered are online deals, disconnected deals, walk-ins. This will evoke information on which channel is performing admirably and the reasons thereof. As every single online deal could be commissionable, the edges might be lower, anyway the business volume will be better as it online table booking is much popular. Additionally since this out let has a menu which claims to youths, online deals are likey to develop drastically. Consequently it is judicious to locally available online food aggregrators and take appointments on the web. Food advancements additionally should be possible on this stage to get more reaction. A few advancements could be giving out food markdown vouchers, purchase 1 soup, get 1 free, dispatch glad hours to draw in clients during non top hours too. This could be an imporant metric and the food aggregators will have inbuilt mechanisims on what number of clients have booked and their food inclinations. Likewise we could get information about what number of clients visited the site and didn't execute. The reasons could be value, helpless menu and so forth which likewise could be broke down. A procedure of remarketing should be possible to these clients.

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