Dealing with the competition:
Mrs. Julia Brown has made following decisions to help the High Tower Store top deal with the competition effectively:
- Becoming successful in the areas where the mass merchant could not succeed.Examples of this could include special events, programs, displays and demonstrations.
- Paying attention on the imported items and exclusive items not present elsewhere.
- Varying the amount of the floor space available for the toys.Toys space tripled in the Christmas events when the demand of the toys becomes significant.
- Developing the grandmother business that is the stock toys purchased by the grandmother who are less concerned with the price of the toys.
Sales in the stores:
The sales of High Tower Store increased in the months of November and December.This accounts for about 50% of the sales of High Tower Store.This may be primarily due to the increase in the demand of the toys by the customer as a result of event slike Christmas as in these events the people used to offer the gifts more as compared to other months.The sales of the toys have been increased in past four years. Moreover,the sales have been increased by $ 16,000; this shows an increase in the demand of the stuffed toys in the stores of the High tower departmental store.
Interpretation of the Scatter plot (Test sales VS Realized sales):
The analysis of past ten years resulted in the test sales of the stuffed toys. This analysis mainly shows that the toys having higher test sales figure in the test sale phase will have higher sales in the normal sales phase in the succeeding years.However,this is not the case during the test sales of the toy sand there is large deviation in the scatter plot.Thescatter plot shows that the test sales of bear toy in 1984 were 80 and the realized sales were 133 and that of the Alligator with same test sales in 1990 have the realized sales 269.Lastly, the sales for monkey toy were 146 in the year of 1991 with the same figure of the test sales.
On the other hand, the realized sales figures of the stuffed animal having 8 units of test sales were more than the stuffed animal having 14 units of the test sales figure.Finally, the two stuffed animals having same figure of the test sales have different results in the realized sales. This shows that Mrs. Julia and the top management of the High tower store cannot depend entirely on the basis of the relation between the test sales and the results of the realized sales figures. If done so, then there will be large difference in the estimated realized sales figure and the actual realized sales figures.
Interpretation of the regression analysis (Test sales VS Realized sales):
Multiple R value of 42% in the regression analysis of the test sales vs. realized sales show that the test results and the realized sales relate 42% with each other.Inother words ifthe projections of realized sales figures of stuffed animals are made on the basis of the test results trends, then there is only 42% chance that the realized sales will be same as projected.
If the significance of value in the regression analysis between test sales and realized sales would be less than 5%, then it would result in higher correlation between test sales results and the results of the realized sales.However,the regression analysis shows the value of 6.42%, which shows that the test sales and realized sales are less interrelated with each other………………………….
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