Business Computing 1

ISYS 2059

Business Report: Hammer Vines and its marketing strategy

Table of Contents

1. INTRODUCTION....................................................................................................2

2. ANALYSIS OF DATA.............................................................................................22.1 EXCEL DATA ........................................................................................................32.2 WHAT EXCEL DATA IMPLIES .................................................................................5

3. QUALITATIVE FACTORS THAT AFFECT THE SUCCESS OF THE MARKETING CAMPAIGN.......................................................................................5

4. CONCLUSION & RECOMMENDATION...........................................................6

5. ERRATUM...............................................................................................................6

6. APPENDIX 1 – HAMMER WINES DATA (EXCEL FILE)..............................7

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1. Introduction

Colin is currently facing excess stocks at the warehouse for DUNKLES, DURST,

FASS and HELLES beers. It has decided to have warehouse sales along with an

evaluation on online communication with customers to promote sales instead of its

traditional way of using hard copy brochure.

The purpose of this report is to analyze which of the marketing strategy would be the

most profitable with the support from existing data gathered, following

recommendation questioning,

1. Should Colin preserve its current evaluation on online communication?

2. Should Colin carry on to use the purchased customer list to generate

larger customer database or concentrate on expanding the database by

using traditional marketing strategies?

2. Analysis of Data

The data provided presents information on the amount of assorted beers that is sold in

different marketing strategies, numbers of emails that were sent out every week and

the total sales from week 1 till week 6. See Appendix 1 – Hammer Wines Data (Excel file)

It was decided that a Pivot Table and chart would be created to fully interpret the

assorted beer sales for each marketing strategies.

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2.1 Excel Data

After 6 weeks of sales, it was noticed that the number of email that was delivered has

a direct impact on the sales turnover. Week 1’s total sales was $58,673.80 with 18%

emails not delivered as compare to week 4’s total sales was $79,272.20 with 3 % of

emails was not delivered. Thus, it means the more emails are delivered, the higher the

sales will be. See Appendix 1 – Hammer Wines Data (Excel file)

With contrast to the chart, DUNKLES beer stood out as the highest percentile of

146.3% with FASS beer in second of 49.8% and DURST beer with 22.8%. The data

takes reference to the average number of beer cartons sold in week 1-4 in comparison

to the number of beer cartons sold in week 0. Showing that DUNKLES beer is the

most popular and well-known beer as compared to the rest.

DU

RST

FASS

DU

NK

LES

HEL

LES

Customer List

Customer List

Customer list &

employee business contacts

Purchased potential

cutsiomer database

list

-100

0

100

200

300

400

500

600

700

Average Carton Sold ( week 1 - 4)% of improvement

To have an accurate and detailed result, a pivot table was created to further analyze

the sales of each marketing strategy. It was shown that Customer list and employee

business contacts have the greatest effects on sales with the highest percentile of

149.3% improvement in sales, with Customer list in second of 33.5% and Purchased

potential customer database list in last with -23.6%.

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Customer List

Customer List & employee business contacts

Purchased potential customer database list

-100.0 0.0 100.0 200.0

% improvement based on (week 1 to 4)

Adding on, it was also discovered that promotions increase sales turnover rapidly. In

the chart, the “2 for 1” promotion that was sent out in week 5 has increase a percentile

of 102.2% for HELLES as compared to week 1- 5 with -23.7%.

Customer List

Customer List & employee business contacts

Purchased potential customer database list

-100 0 100 200 300

% improvement based on (week 5-6)% improvement based on (week 1 to 4)

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2.2 What excel data implies

Through analysis of the data, it has been suggested that,

The customer list and employee business contacts have the greatest

effect on sales as compared to others.

The number of emails that were delivered has a direct impact on the

sales of the assorted beers.

DUNKLES beers are well known in the market.

Promotion helps to increase sales turnover rapidly.

3. Qualitative factors that affect the success of the marketing campaign

There are a few factors to consider if Colin wants to make the best out of its

marketing campaign.

1. Customers’ preferences. As suggested in the data as well as in the case study,

it was decided that each product would be marketed out to different marketing

strategies. This can affects the sales of the assorted beers as customers have

different preferences. They may want to purchase other beers that are not

marketed out to them.

2. Promotion. Through analysis of the data, customers are appealed to the

promotions that were sent out especially “2 for 1”.

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4. Conclusion & Recommendation

To conclude, using online communication with its customer list and employee

business contact would have the greatest impact on sales. However, it would be a

bonus on to have it marketed out to different types of demographics.

Therefore a few recommendations have been made respectively,

1. Colin should focus on increasing the size of his customer database list using

the traditional marketing strategies.

2. All products should be marketed out to different markets instead of choosing

the products for its customers to maximize the sales.

5. Erratum

Beer Prices

BEER TYPE SIZE Price per Carton

DURST 750 ML $65.80

DURST 375 ML $54.95

FASS 750 ML $48.30

FASS 375 ML $46.50

DUNKLES 375 ML $40.80

DUNKLES 750 ML $43.20

HELLES 375 ML $55.20

HELLES 750 ML $60.00

Marketing Strategy Code Product Size Week 0 Week 1 Week2 Week 3 Week 4 Week 5Customer List BB002 DURST 375 ML $10,550.40 $10,440.50 $13,188.00 $13,737.50 $13,737.50 $14,012.25

Customer List BB009 DURST 750 ML $5,922.00 $6,251.00 $7,896.00 $7,896.00 $7,896.00 $7,896.00

Customer List BB001 FASS 375 ML $6,928.50 $7,207.50 $10,927.50 $10,695.00 $10,695.00 $11,160.00

Customer List BB008 FASS 750 ML $3,574.20 $3,670.80 $6,762.00 $6,520.50 $6,520.50 $7,486.50

Customer list & employee business contacts BB005 DUNKLES 375 ML $7,507.20 $14,484.00 $16,360.80 $20,440.80 $22,644.00 $25,296.00

Customer list & employee business contacts BB012 DUNKLES 750 ML $4,104.00 $6,696.00 $8,856.00 $11,923.20 $13,003.20 $14,385.60

Purchased potential cutsiomer database list BB004 HELLES 375 ML $0.00 $6,624.00 $6,789.60 $662.40 $276.00 $7,452.00

Purchased potential cutsiomer database list BB011 HELLES 750 ML $0.00 $3,300.00 $4,020.00 $4,140.00 $4,500.00 $4,620.00

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