The BADIR methodology is composed of five main elements which are formulating the business question, the analysis plan, data collection, insights and recommendations (Aryang, 2013). Business Question: How sales and profits are distributed across outlets and where are the major growth areas? Analysis Plan: The sales data for each of the outlet has to be analysed. The profit data is the sales data minus and the costs in processing and operations during the sales. This would very well differ from sales data.
From Table 1, it can be inferred that more sales were done with the external customers. The internal carts came to second place and the mobiles came to third place. Therefore, of the three different outlets for individual external customers, internal carts and mobile units, it is the external customer’s unit that makes the most sales.
From Table 2, it is inferred that although external customers were observed to be the most revenue generating based on the number of sales, it can be seen that based on each individual category, the category that generates maximum number of sales per unit of the category (categories being individual, carts and mobiles) is Internal carts. In internal carts, the average sales made to per customer are around 1276. In the case of mobiles, it is 853.6 and mobile category comes second in terms of sales and customer segment comes third.
The final insight gained is that depending on processing fees for sales, the more the kgs sold per month, the lesser the cost of processing. Less than or equal to 500 kgs per month results in a cost of processing at 14 dollars. However, more than 500 and less than 651 is a much lesser cost of processing. Now in the case of external customers, the cost would be 9 dollars for four months excepting January, and 10 dollars for the rest. In the case of the carts, it is 9 dollars for three months and 10 dollars for the rest, and in the case of mobile units, it is 14 dollars for all months.
By understanding sales distribution across outlets, the business will come to know the outlets that have to most demand for the product (Grant, 2016). Therefore, inventory can be arranged accordingly. Demand from the market can be used to plan, market and strategize product movement. Now based on the number of sales made, different recommendations can be made.
Recommendation 1: Assuming that the company is interested in expansions only based on sales, they would choose to expand in the external consumer arena.
Recommendation 2: If they want to control processing costs as well in expansion, then they should choose external consumer arena again.
Recommendations 3: If they are interested in sharp growth and want more products sold to per category, then they should make use of the mobile segment as a major growth area.