Analysis of Market Fragrances - Example

Analysis of Company X market fragrances Student’s Name: Institutional Affiliation: Submission Date: Executive Summary The report is written regarding Company X strategic plan of coming up with new fragrance products. From the survey, it can be evaluated that the current products lack consistency. Basing on this fact, planning needs to be done before the implementation and marketing of the fragrance products so that the products can be highly accepted; the survey was carried out to assess the current trends in the market and majorly Australian and Asian Markets. The study used the survey as the major data collection methodology. The mean, standard deviation and coefficient of variation were calculated to assess the prices of the fragrance products. The mean depicts the average prices for the products while the standard deviation shows how much the prices have deviated from the average products. On the other hand, the coefficient of variation shows how the prices vary between different products in a fragrance. Table of Contents Contents Executive Summary 2 Table of Contents 3 Analysis 5 Question 1 8 Mean 8 Standard Deviation 9 Coefficient of Variation 9 Part 2 10 Prices for gender 10 Mean 10 Mode 11 Median 11 Standard Deviation 12 Prices for Fragrance 12 Mean 13 Mode 13 Median 13 Standard deviation 14 Prices intensity 14 Mean 14 Mode 15 Median 15 Standard deviation 15 Prices for different countries 16 Mean 16 Mode 16 Median 17 Standard deviation 17 Part 3: 17 General Conclusion 20 Implications 21 Analysis The report analyses various things in the most potential markets that the company considers being their target niche. 95 products were assessed and evaluated by the company and their mean was calculated. Other things that were evaluated in the report comprise of mode, median, standard deviation and the coefficient of variance. Variables under the study were the genders, both male and female, prices of the products, countries where the products are produced, the fragrances and finally the intensity of the products. The following is the data for this study. It is going to use for both question 1 and 2. PRICE GENDER TYPE MADE ITEN 267 1 1 1 1 217 1 1 1 1 247 1 1 1 1 247 1 1 1 1 279 1 1 1 1 257 1 1 1 1 277 1 1 1 1 267 1 1 1 1 305 1 1 2 1 277 1 1 2 1 247 1 1 2 1 287 1 1 2 1 307 1 1 2 1 207 1 1 2 1 207 1 1 2 1 207 1 1 2 1 265 1 1 2 1 185 2 1 2 1 185 2 2 2 1 183 2 2 2 1 199 1 1 3 1 243 1 1 3 1 163 1 1 3 1 252 1 1 3 1 223 1 1 3 1 213 1 1 3 1 183 1 1 3 1 173 1 1 3 1 143 1 1 3 1 193 2 2 3 1 183 2 2 3 1 139 1 1 1 2 143 1 1 1 2 163 1 2 1 2 133 2 2 1 2 123 2 2 1 2 133 1 1 2 2 73 1 1 2 2 83 1 1 2 2 159 1 1 2 2 188 1 1 2 2 117 2 1 2 2 111 2 1 2 2 177 2 1 2 2 139 1 2 2 2 89 1 2 2 2 97 2 2 2 2 69 2 2 2 2 57 2 2 2 2 135 2 2 2 2 157 2 2 2 2 159 2 2 2 2 119 2 1 3 2 39 1 2 3 2 119 1 2 3 2 69 2 2 3 2 69 1 1 1 3 29 2 1 1 3 69 2 1 1 3 65 1 2 1 3 104 1 2 1 3 51 1 2 1 3 51 1 2 1 3 43 1 2 1 3 29 2 2 1 3 75 1 2 2 3 69 1 2 2 3 55 1 2 2 3 55 1 2 2 3 55 1 2 2 3 41 1 2 2 3 49 1 2 2 3 51 1 2 2 3 45 1 2 2 3 65 1 2 2 3 65 1 2 2 3 43 1 2 2 3 43 1 2 2 3 65 2 2 2 3 36 2 2 2 3 116 2 2 2 3 74 2 1 3 3 46 1 2 3 3 126 1 2 3 3 66 1 2 3 3 48 1 2 3 3 38 1 2 3 3 34 1 2 3 3 36 1 2 3 3 66 2 2 3 3 175 2 2 3 1 155 2 2 3 1 112 1 1 1 2 186 1 1 1 2 124 1 2 1 2 Sum12802 123 146 191 191 Mean134.7579 1.294737 1.536842 2.010526 2.010526 Results of calculations of various measures of central tendency: PRICE   GENDER   TYPE   MADE   ITEN   Mean 134.7579 Mean 1.294737 Mean 1.536842 Mean 2.010526 Mean 2.010526 Standard Error 8.17115 Standard Error 0.047025 Standard Error 0.051431 Standard Error 0.075564 Standard Error 0.086612 Median 124 Median 1 Median 2 Median 2 Median 2 Mode 69 Mode 1 Mode 2 Mode 2 Mode 3 Standard Deviation 79.64251 Standard Deviation 0.458343 Standard Deviation 0.501286 Standard Deviation 0.736506 Standard Deviation 0.844188 Sample Variance 6342.93 Sample Variance 0.210078 Sample Variance 0.251288 Sample Variance 0.542441 Sample Variance 0.712654 Kurtosis -0.96172 Kurtosis -1.18836 Kurtosis -2.02045 Kurtosis -1.13305 Kurtosis -1.60218 Skewness 0.460881 Skewness 0.914937 Skewness -0.15015 Skewness -0.0166 Skewness -0.02015 Range 278 Range 1 Range 1 Range 2 Range 2 Minimum 29 Minimum 1 Minimum 1 Minimum 1 Minimum 1 Maximum 307 Maximum 2 Maximum 2 Maximum 3 Maximum 3 Sum 12802 Sum 123 Sum 146 Sum 191 Sum 191 Count 95 Count 95 Count 95 Count 95 Count 95 Confidence Level(95.0%) 16.22401 Confidence Level(95.0%) 0.093369 Confidence Level(95.0%) 0.102117 Confidence Level(95.0%) 0.150034 Confidence Level(95.0%) 0.17197 The above data has done on an excel spreadsheet for the following interpretations of question 1 and 2. Question 1 Under this part, this paper gives a description of the above data as well as an explanation of Mean, Standard Deviation and Coefficient of Variation. Mean The mean is the main measure of central tendency. It is quite simple to compute and analyze. It is used and applied in continuous data as well as discrete data. It is given by the total sum of the values in a given data divided by number of values So, given n values in a set of data and with values x1, x2, ..., xn, the sample mean, usually denoted by Ẋ is: From the Excel computations above, the mean is given by:   PRICE GENDER TYPE MADE ITEN             Mean 134.7579 1.294737 1.536842 2.010526316 2.010526 Standard Deviation For this report, Standard Deviation denotes how far the purchasing has deviated from the mean purchase. It also showcases the difference in the type, intensity, made and kind of the fragrances. Given by the formula From the Excel calculations, the results are given by the following:   PRICE GENDER TYPE MADE ITEN Standard Deviation 79.64251 0.458343 0.501286 0.736506082 0.844188 Coefficient of Variation This is described as the measure of spread and denotes the level of variability about the mean. It is given by the formula below. The calculations are given by:   PRICE GENDER TYPE MADE ITEN Standard Deviation 79.64251 0.458343 0.501286 0.736506082 0.844188 Mean 134.7579 1.294737 1.536842 2.010526316 2.010526 Coefficient of Variation 0.591004 0.354005 0.326179 0.366325015 0.419884 Coefficient of Variation (%) 59.10044 35.40048 32.61793 36.63250148 41.98843 Part 2 This part requires calculations of Mean, Median, Mode, Standard Deviation, and Coefficient of Variation, 95% confidence for prices for gender, fragrance, intensity and in different countries Prices for gender Class 28-62 45 2025 18 18 810 36450 63-97 80 6400 10 28 800 64000 98-132 115 13225 5 33 575 66125 133-167 150 22500 8 41 1200 180000 168-202 185 34225 5 46 925 171125 203-237 220 48400 6 52 1320 290400 238-272 255 65025 9 61 2295 585225 273-307 290 84100 6 67 1740 504600 Mean The mean is calculated by diving the sum of the frequency multiplied by the midpoint of the class at which the products sold and the sum of the frequency. From the study, the average gathered from the female gender is. This figure entails that many women purchase fragrances that fall under the prices 133-167. The company should make sure that products under this range receive higher production. Mode L=lower class boundary of modal class F1=Frequency of modal class FO=Frequency of class above model class F2=Frequency of class below modal class C=class size Mode entails the number of women who purchase the fragrances. From the study, 57 women are the optimum number of women who buy the fragrances. By knowing where there is the highest number, the company is going to be in a position of stipulating the products that have a higher consumption in the market and in which countries are the products accepted more by women. The prizes of the most accepted fragrances will also be known. Median The median is used to show where the average or rather an optimum of all the aspects falls n regard to the female gender. From the outcome of the study, 45 were found to the female’s sex. Therefore, the position of which there are 45 is where the company should set its optimum prices. Also, in this country is where there is consistency and Company X can be sure of market stability in this region. Moreover, the number entails the most stable fragrance in the market. When the company knows the most permanent fragrance in the market, the company will know where to put more strength and, therefore, maintain production before stipulating on an exchange plan. Lastly, the median denotes the kind of Intel product that are liked averagely by the target market. Also, this helps Company X maintain the production in particular products of a certain intensity. Standard Deviation Deviation denotes how far the purchasing has deviated from the mean purchase. It also showcases the variation in the type, intensity, made and kind of the fragrances. Goods that have varied either lower or higher than 61.5331 are not consistent in the women market and, therefore, ways of bringing consistency should be evaluated. Prices for Fragrance Calculations can be based on the data below Class 28-62 45 2025 2025 1 45 1 63-97 80 6400 32000 5 400 6 98-132 115 13225 52900 4 460 10 133-167 150 22500 157500 7 1050 17 168-202 185 34225 239575 7 1295 24 203-237 220 48400 290400 6 1320 30 238-272 255 65025 585225 9 2295 39 273-307 290 84100 504600 6 1740 45 Mean Here, mean has been used to showcase the average perfume product that has been accepted by both genders and in the respective countries under the study. From the study, showcases the optimum fragrance type, made, country and in intensity that the target market has accepted the product. Mode 255 is the most frequent perfume fragrance that is accepted by the two genders and the countries where the products are found. More production should be done on the products falling under this model class. Median is the midpoint of the averagely accepted fragrance. Therefore, production should be kept constant under these fragrances since they depict consistency. Standard deviation In general, this product lacks consistency; this can be seen by the deviation it has from the mean point. Basing on the fact that is much further from the mean point which is, a conclusion can be made that perfume is not consistent in the market in all the three countries and the two genders. Prices intensity Class 28-62 45 2025 0 0 0 0 63-97 80 6400 0 0 0 0 98-132 115 13225 0 0 0 0 133-167 150 22500 3 3 450 3 168-202 185 34225 12 9 1665 12 203-237 220 48400 18 6 1320 18 238-272 255 65025 27 9 1295 27 273-307 290 84100 33 6 1740 33 33 7470 Mean depicts the figure at which the optimum number of strong fragrances are bought in the countries and gender under the study. Mode ………(i) ………(ii) is the number that shows the most bought strong fragrances in the countries and genders under the study. Median is the midpoint for the optimum bought strong fragrances in the countries and the genders under this particular study. Standard deviation In general, the strong inten products lack consistency; this can be seen by the deviation it has from the mean point. Basing on the fact that is much further from the mean point which is, a conclusion can be made that strong intensity fragrance are not consistent in the market in all the three countries and the two genders. Prices for different countries Class 28-62 45 2025 11 11 495 22275 63-97 80 6400 21 10 800 64000 98-132 115 13225 25 4 460 52900 133-167 150 22500 31 6 900 135000 168-202 185 34225 35 4 740 136900 203-237 220 48400 38 3 660 145200 238-272 255 65025 40 2 510 130050 273-307 290 84100 44 4 1160 336400 Mean The optimum purchase of the products in the USA is 130.1136. This figure denotes the optimum fragrance and type that has get acceptance by both men and women in the USA. Mode is the figure for the product that receives highest sales in the USA. This number denotes the largely accepted fragrance and intensity in the USA. Median is the midpoint of the prices that is mostly purchased by both genders in the country of USA. Therefore, this figure denotes that the fragrances and intensities that fall under this numbers are the ones that exhibit consistency and thus should be produced at a constant amount. Standard deviation In general, these fragrances lack consistency in the USA. This fact is denoted by the significant deviation shown since the mean is while the standard deviation is Part 3: 1. Using ANOVA as the basis of our analysis, these assumptions are made: Mean, µ is normal Sample is from a normal population Variance is homogeneous In this case, we can follow step by step; It good to state that this is a one-way ANOVA. From Excel calculations, we denote the following ANOVA: Single Factor SUMMARY Groups Count Sum Average Variance PRICE 95 12802 134.7579 6342.930123 GENDER 95 123 1.294737 0.210078387 TYPE 95 146 1.536842 0.251287794 MADE 95 191 2.010526 0.542441209 ITEN 95 191 2.010526 0.712653975 ANOVA Source of Variation SS df MS F P-value F crit Between Groups 1345305 4 336326.2 265.047257 5.5E-119 2.39091 Within Groups 596396.8 470 1268.929 Total 1941702 474         DF= degree of freedom SS= sum of square MS= mean sum of square Our GOAL is to test if the hypothesis: H0 = µ0 H1≠ µ1 *P> 0.05 Where the NULL hypothesis, H0 says that average price for female products is greater than $ 140 per 100 ml. We calculate the critical value for the level _ = 5% _ = 5% ) Fcrit 4;470 (5%) = 5:79 We have calculated F = 265.047> Fcrit2;5 (5%). Consequently, we REJECT THE NULL HYPOTHESIS H0= 0 and accept the alternative hypothesis. This is to imply that the average price for women is NOT greater than $ 140 per 100 ml. 2. We can formulate the hypothesis: H0 = µ0 H1≠ µ1 *P> 0.05 Where the NULL hypothesis, H0 says that average prices for female products exceed average prices for male products. From the ANOVA table we can deduce that: F = > Fkrit2;5 (5%). Therefore: we REJECT THE NULL HYPOTHESIS H0= 0 and accept the alternative hypothesis. This is to imply that the average prices for female products DO NOT exceed average prices for male products. 3. We can formulate the hypothesis: H0 = µ0 H1≠ µ1 *P> 0.05 4. We formulate the NULL hypothesis that there is a difference in the prices for intensity H0=0; or H1≠0; Since the p-value is 0.4721 which is greater than 0.05, we conclude that the prices for intensity are countries are not different. 5. We can formulate the hypothesis: H0 = µ0 H1≠ µ1 *P> 0.05 We can have the NULL hypothesis H0 that there is a significant difference in the prices for different countries Since the p-value is less than 0.05, we conclude that the prices of the various countries are different General Conclusion In conclusion, the study was well conducted as all the evidence towards the general market perception was put into consideration. This report is important as the Products assessed to have received higher purchase will obtain a production in greater quantities while the products less purchased by the consumers produced in less quantity. According to the report, perfume ought to be produced higher than cologne since it is the product that gives out more sell when compared to cologne. Also, France is attributed to having other sell as compared to the other variances under the study. Implications The analysis has clearly depicted that the three fragrances lack consistency in the market. Therefore, the C.E.O and the whole crew for company X should sit down and strategies on a proper plan that will see the new products attain consistency in the market. The highly accepted products should be manufactured in plenty while the lowest received products should be less produced. Regarding this, strong intensity products should be produced in abundance while the mild strength products should be less manufactured. Also, the company should consider setting up more production in France than USA basing on the fact that France has the capability of giving out more sales that the USA and the other countries. Moreover, female products have been seeing to be bought more as compared to the male products and thus, should be produced in plenty. Finally, while stipulating the products prices, the company should consider the range of the highest value products which is 307 and the lowest products which is 29 dollars. Thereby the 278 range should and must be taken into consideration. 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