Essentials of Business Analytics - Term Paper Example

Business Analytics Institution Affiliation Date TABLE OF CONTENTS Chapter 1 Introduction ……………………………………………………………………………………..2 Background research……………………………………………………………………………..2 Survey…………………………………………………………………………………………….. Chapter 2 Analytic solution 1…………………………………………………………………………………4 Analytic solution 2…………………………………………………………………………………4 Chapter 3 Recommendation…………………………………………………………………………………..5 Conclusion…………………………………………………………………………………………9 References …………………………………………………………………………………………10 Chapter 1 Introduction Cosmetic products have been used mainly by ladies for enhancing external body appearance like the face. However, due to increasing needs, there has been diversification of the industry to meet new demands in the medical and health sectors. Products that have medical, health and nutritional benefits are used widely and the market continues to grow rapidly. Products have been modified to meet different requirements by the customer base and can be utilized, by all people. Background research The research is carried out in Australia in 6 states: Queensland, Tasmania, South Australia, Western Australia, New South Wales and Victoria. It is conducted to obtain data that is important in to know the performance of products in the market and help in decision making and strategic planning to utilize potential opportunities. Income, the age group of users and their monthly income, is compared to the product type, form, confidence rating of goods and the rate of recommendation to other potential customers. Monthly income affects the type of product and form that the people are willing and are able to purchase to meet their nutritional, personal and medical care needs. The survey focuses on the relationship between age group where users of various ages prefer various commodity types and in different forms. It also shows the confidence rating which is the level of trust that the people have for the various types and forms of products. Recommendation score is the rate at which the current users encourage others to use the product and it’s affected by the confidence level in the products (JANK, 2011). All these factors play a role in the performance of the products and are related. Survey review Cosmeceutical, Neutricosmetics and Nutraceutical products have been well adopted by the population but more can be achieved. Western Australia, Southern Australia and New South Wales states have the bigger market share of users of the products which may be attributed to increased awareness. Victoria has users while Tasmania has the least. This shows more efforts regarding marketing strategies need to be applied to increase potential customer base. Nutricosmetics are mostly used in the states of Queensland, Victoria, western and southern Australia and least used in New South Wales. Neutraceuticals have performed well in Western Australia and New South Wales and performed averagely in Victoria and Tasmania while in Queensland the products have performed poorly. Cosmeceutical has a high market share in South Australia and Queensland with average market base in Tasmania and Victoria but has the lowest in Western Australia and New South Wales. Consumers have a high level of faith in Nutricosmetics followed by Nutraceuticals and then Cosmeceutical. Food is the most trusted form of the products followed by the beverage while most consumers express the least confidence in the pill form. 16% of users under 30 years prefer Cosmeceutical products more than Nutricosmetics and Nutraceuticals and also prefer the pill from food and beverage. Most of the people between the ages of 40 and 70 use Cosmeceutical and Nutraceuticals in all the forms except food which is preferred by only 4% Younger users below 30 years express a high level of confidence in pills that are Cosmeceutical in nature while the lowest confidence level is those between 60 and 70 years is Nutraceutical products in the form of pills followed by food. Residents in all the states except New South Wales earn income above 50,000$ and therefore can afford most products. They also like using the pill from compared to the others, South America has the highest recommendation score and an average confidence level in the pill and play a major role in marketing the products. The survey is well done and covers essential elements that affect the use of the developing products. However, the data coverage should include aspects such as frequency of product usage and channels or ways in which the people knew about the products to enable focus on marketing strategies that are effective (COOK, 2006). The methods of collection should involve questionnaires to consumers where they express their views regarding the products, and this helps the manufacturers understand their needs and improve production based on that. This would improve customer satisfaction level and increase usage of the commodities by potential users Chapter 2 Analytic solution 1 To expand the customer base in the different states In the various states, the product types perform differently. However, in general, the customer base for a combination of the products is still below the average. In the case of Cosmeceutical, they are highly used in South Australia and Queensland while Western Australia and New South Wales, the use is very low below 30% showing there is a task of increasing the customer base. Using the comparison of income to product type can help understand the strategies that can be used. In the different states majority of the residents earn between 50,000 and 90,000 $.The Average population of the residents in the states earn below 50,000 $ while a few earn above 100,000$.Using this analysis pricing, of the products should not be low as most of the residents earn moderate income enough to buy the products at fair prices. Pricing them low may reduce the confidence level of the people and hence reduce the recommendation rate to other potential customers. On the other hand, high price will make the high income-earners be able to acquire them but leave out the average and low-income earners. Increased marketing to the people, fair pricing and advertising to raise awareness will solve the problem of market share by increasing the number of potential customers in Australia. Analytic solution 2 To increase satisfaction and recommendation level The age of the customers from the different regions is different affecting their choice and form of product. The data can help solve the problem of a unutilized customer base to increase a potential number of customers in the states to be at least above 70% in all the states. IN the comparison between the age bracket and product type, younger people below the age of 30 mostly use Cosmeceutical while the older people between 50 and 70 use Nutraceuticals.This is perhaps due to the need to reduce the aging rate by taking nutritional supplements to boost body Immunity and strengthen the body. Average users between the age of 40 and 50 mostly use Cosmeceutical and combine the others in a similar ratio. Based on this characteristics products utilized by the different age groups can be supplied in the states where there is a bigger percentage of the age bracket. More marketing should also be done to make them aware of the product; this will increase the utility of the products by the age group increasing satisfaction which will in turn increase the rate at which they will recommend the products to other users within similar age brackets. Chapter 3 Recommendations Entry into the market can be useful if proper strategies are implemented to beat the current competition in the market. First taking into consideration the comparison between the age bracket and the product type, the entrant should increase supply and create increased awareness in the specific states in regard to the age group. Products used by the age groups should be more to meet demand and personal advertising strategies put in place. This would help the various age groups be aware of the existence and hence use the products are the supply would be enough to meet the demand. The confidence rating for all the products is below average meaning most of the users are not fully satisfied after using them. Proper research user satisfaction should be done to get insights on what the customers expect and compare to what their get when using the products. This would help the new entrant produce products that would already have a ready market according to the people’s needs. This would increase the confidence level of the consumers and greatly affect the recommendation score. It would increase the customer base and even reduce the costs incurred in marketing as the products would market themselves and by the current users. According to the survey, many users are satisfied by Nutricosmetics followed by Nutraceuticals and Cosmeceutical which have slightly different confidence levels. This shows they prefer Nutricosmetics more. Here focus by the new company should be on researching to establish why Cosmeceutical is preferred and make necessary improvements to the Nutricosmetics and Nutraceuticals products as well. The company should increase the production of Nutricosmetics in the market and campaign for the use of Cosmeceutical and Nutraceuticals.This would make the products support each other and increase confidence level for all. Proper pricing of the products is also an important strategy to consider. Although the survey does not cover the cost of products, Most people earn above 50,000 $.Although they earn enough to afford the products, people are generally rational. This means that they compare the satisfaction they get from a product against the cost (CAMM, 2016). Here the new entrant should price his/her products lower than the current ones in the market but not too low as they may be viewed as under quality. This is a good strategy in that users being rational would shift from the current products to the ones offered by the new entrant as they would cost them less and still equally satisfy their needs. The product form greatly influences the sales in the market. The survey shows food is the most trusted from of the products in the six states. Beverage follows closely while pills record the least level of confidence. This means that people would hence use products in the food and beverage form more often than the pills. The firm should transform more of its products to be in the food and beverage from instead of the pill. This would increase use of the products greatly and improve the confidence level helping retain current customers while attracting potential ones. Increase marketing. Marketing is one of the most important strategy for all companies. There may be many existing potential buyers in the market, but they lack awareness of the products. People can’t buy things they don’t know they exist (DHAR, 2006). IN the different states, the people prefer different types of products, some states like Western Australia largely prefer Nutricosmetics and Nutraceuticals while Cosmeceutical is preferred by a very small portion of the population. This is due to lack of information about the different products in the states. Personal selling marketing strategy should be used to reach to the people and educate them on all products explaining their details. This will provide firsthand feedback users and increase awareness which would increase the potential customer base for the different products in all the states. Conclusion Due to the diversification of production of pharmaceuticals industries, there is a change in the market structure and entry of new producers. Business Analytics is an important technique that enables assessment of the market, enabling producers and new entrants in decision making where they adopt production and marketing strategies that would enable them to enter and sustain themselves in the competitive market References EVANS, J. R. (2013). Business analytics: methods, models, and decisions. Boston, Pearson. JANK, W. (2011). Business analytics for managers. New York [etc.], Springer. http://dx.doi.org/10.1007/978-1-4614-0406-4. COOK, A. G. (2006). Forecasting for the pharmaceutical industry: models for new product and in-market forecasting and how to use them. Aldershot, England, Gower. http://site.ebrary.com/id/10211231. TIELMANN, V. (2010). Market Entry Strategies International Marketing Management. München, GRIN Verlag GmbH. http://nbn-resolving.de/urn:nbn:de:101:1-201011221310 DHAR, S. (2006). Case studies on market entry strategies. Hyderabad, Icfai Books. ROSEN, M. R. (2005). Delivery System Handbook for Personal Care and Cosmetic Products, Applications and Form URRAN, C.-S. (2013). the anticipation of converging industries a concept applied to Nutraceuticals and functional foods. London, Springer. http://site.ebrary.com/id/10720618. Ulations. Burlington, Elsevier. http://www.123library.org/book_details/?id=53957. HAVALDAR, K. K. (2005). Industrial marketing: text and cases. New Delhi, Tata McGraw-Hill. (1972). Australian journal of pharmaceutical sciences. Melbourne, Australasian Pharmaceutical Pub. Co EVANS, J. R. (2013). Business analytics: methods, models, and decisions. Boston, Pearson. CAMM, J. D. (2016). Essentials of business analytics. Read More