3.2 Proportion of total sales by region
Figure 2.
Region Count Percent
East 23 24.21
North 33 34.74
South 39 41.05
N= 95
Figure 2 looks at the proportion of total sales generated by region. From the pie chart, we can see that the south region is leading with the highest total sales of £24,599,000, which is approximately 41% of the total sales in the uk. The north region is following closely behind with £21,169,000 – approximately 35%, whilst the east region has the lowest proportion of the total sales with £14,559,000 – approximately 24%.
3.3 Regional sales by gender of manager
Figure 3.
Results for Region = East
Variable Gender Mean Minimum Q1 Median Q3 Maximum
Total sales Female 590.0 533.0 541.3 571.5 623.0 734.0
Male 650.5 501.0 573.5 670.0 723.0 749.0
Results for Region = North
Variable Gender Mean Minimum Q1 Median Q3 Maximum
Total sales Female 624.8 450.0 523.5 620.0 761.0 780.0
Male 647.8 469.0 595.3 655.0 722.5 764.0
Results for Region = South
Variable Gender Mean Minimum Q1 Median Q3 Maximum
Total sales Female 637.6 493.0 563.0 655.0 728.0 771.0
Male 629.3 449.0 543.0 636.5 714.3 768.0
Figure 3 looks at how the gender of the manager affects sales in each region. In the east region, male managers generated greater sales than their female counterparts with males generating average total sales of £650,500 compared to £590,000 by females. The maximum total sales generated by male managers (749,000) was also greater than that of the females (£734,000).
Male managers also had higher average total sales in the north (£647,800) although the highest total sales generated in the north region was by a female manager (£780,000), with 25% of females generating total sales above £761,000 compared to £722,000 by the males.
The average total sales for females in the south region was greater than that of the males, with females averaging total sales of £637,600, and males averaging £629,300. overall performance by females in this region was better than that of the males, with 25% of females generating sales of up to £563,000 compared to £543,000 by the males. 50% of females generated sales of up to £655,000 whilst 50% of the males managed to generate sales of up to £636,500 and 25% generated more than £714,300 compared to £728,000 by the females.
3.4 Sales of types of DVD players by gender in the south region
Figure 4.
Descriptive Statistics: Type 1 (£000s), Type 2 (£000s), Type 3 (£000s)
Variable Gender Mean
Type 1 (£000s) Female 115.4
Male 110.00
Type 2 (£000s) Female 216.00
Male 215.06
Type 3 (£000s) Female 306.1
Male 304.19
Figure 4 examines which type of DVD player is sold most by female managers compared to male managers in the south region. From the bar chart we can see that on average, female managers outsold male mangers in all three types of DVD players.
3.5 Relationship between advertising and sales
Figure 5.
Correlations: Advertising(£), Total sales
Pearson correlation of Advertising(£) and Total sales = 0.814
P-Value = 0.000
Regression Analysis: Total sales versus Advertising(£)
The regression equation is
Total sales = 374 + 0.266 Advertising(£)
94 cases used, 1 cases contain missing values
Predictor Coef SE Coef T P
Constant 374.27 20.14 18.59 0.000
Advertising(£) 0.26630 0.01980 13.45 0.000
S = 52.7421 R-Sq = 66.3% R-Sq(adj) = 65.9%
PRESS = 266820 R-Sq(pred) = 64.85%
Figure 5 looks at the relationship between advertising and total sales. As the amount spent on advertising has increased, this has had the effect of sales also increasing. As the r value is closer to +1, this also shows that there is a positive correlation i.e. as advertising goes up, so too does the sales.
3.6 Relationship between price increase and total sales
Figure 6.
Regression Analysis: Total sales versus Price Increase (% since 2002)
The regression equation is
Total sales = 809 - 79.7 Price Increase (% since 2002)
Predictor Coef SE Coef T P
Constant 808.87 14.67 55.15 0.000
Price Increase (% since 2002) -79.694 6.231 -12.79 0.000
S = 54.4438 R-Sq = 63.8% R-Sq(adj) = 63.4%
PRESS = 285027 R-Sq(pred) = 62.52%
Correlations: Price Increase (% since 2002), Total sales
Pearson correlation of Price Increase (% since 2002) and Total sales = -0.798
P-Value = 0.000
Figure 6 looks at the effect of price increase on total sales. On the graph we can see that as price increases total sales decreases. This is also proved by the fact that the r value is closer to –1, which means that there is a high negative correlation i.e. as price increases, sales goes down.
3.7 Relationship between managers age and total sales
Figure 7.
Correlations: Managers Age (yrs), Total sales
Pearson correlation of Managers Age (yrs) and Total sales = 0.600
P-Value = 0.000
Figure 7 looks at the impact of managers age on sales. On the graph, we can see that as the age of the managers increases, so too does the sales.
4.0 CONCLUSION
The following is a summary of the findings:
- The highest proportion of total sales is in the south (figure 2)
- On average, male managers generated greater sales in the north and east, while female managers generated greater sales in the south (figure 3)
- Female managers outsold their male counterparts in all three types of DVD players in the south (figure 4)
- Higher spending on advertising generates greater sales (figure 5)
- Price increases reduce total sales (figure 6)
- Older managers generate higher sales (figure 7)
5.0 RECOMMENDATIONS
The following recommendations are based on the above conclusions:
- As male managers are generating greater sales in the north and east, and female managers generate greater sales in the south, these factors should be taken into account when recruiting new managers
- Age and experience should be taken into account when recruiting managers as older managers tend to generate greater sales than the younger managers.
- As higher spending on advertising generates greater sales, the company should concentrate on advertising in the regions which have lower proportions of sales.
Overall, DVD Sales can take various measures to improve its overall performance. If the conclusions of the report and recommendations are thoroughly taken into consideration, this company has the potential to take these factors and considerably improve the performance of the company, which will lead to increased custom and higher profit margins.
6.0 TASK 2
Since its launch in 1998, DVD has taken just four years to become the dominant format for video in the UK. From a small 5% share of the market for video by value in 1999, DVD captured 58% of the market in 2002. Market values reflect the fact that DVDs are more expensive than VHS videos, but also bears testimony to the fact that the video industry has been successful in managing format transition. VHS continues to pay an important complementary role to DVD, but robust marketing of the DVD by rights owners, retailers and industry associations has brought phenomenal success to the market.
Source: BVA/Rental Monitor/Mintel
Figure 1.
Correlations: DVD Sales (£m), Video Sales (£m)
Pearson correlation of DVD Sales (£m) and Video Sales (£m) = -0.963
P-Value = 0.008
Figure 1 shows that as DVD sales have been increasing, video sales have been decreasing. The r value is also closer to –1 which shows a negative correlation i.e. as DVD sales go up, video sales go down. This shows that as the sales of DVD’s has been increasing, this has created a decline in the sales of videos, as more and more people are buying DVD players. The decrease of DVD player prices has had a major impact on these sales, because when DVD players were first released, they were very highly priced. As the prices decreased, people started to buy more and more DVD players, this in turn has also increased the sales foe DVD’s.
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