Question

The store manager also provides historical data of sales, promotions (discount & deals), advertising, and average $ amount that customers purchased over the last 12 quarters. Based on this data and assuming that the revenue decline is not a result of competition, state the business problem.

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Sale ($M) 1.310 1.403 1.503 1.609 1.724 1.846 1.809 1.755 1.772 1.701 1.633 1.568 Promotions ($k) 257 277 279 269 281 283 275 280 276 281 283 284 Advertising ($k) 78 80 83 85 88 90 93 96 99 102 105 108 Average purchase ($) 71 73 81 83 71 73 82 83 71 75 83 82

Answer 1

The business problem is a consistent decline in sales revenue over several quarters, despite ongoing promotions and increased advertising, suggesting ineffective marketing strategies or other underlying issues.

Step-by-step explanation:

The business problem stated in the provided historical data is a consistent decline in sales revenue over the past several quarters, despite ongoing promotions and increased advertising expenses. This situation may indicate that the promotional strategies and advertising campaigns are not effectively stimulating customer purchases or that there might be an issue with the product mix, pricing strategy, or market changes that are not being addressed. To diagnose the problem accurately, further analysis would be necessary, such as understanding customer behavior, market trends, price sensitivity, and the effectiveness of promotional activities.