Memo

To: RGV Inc

From: Deem Silva
CC:

Date: 10/7/2019
Re: Revenue Assessment

Thank you for the opportunity to assess your sales data in order to provide recommendations for
increasing your sales. The analysis and recommendations below are based on the data you provided,
which covers a period from August 2004 through June 2006. The analysis below is based on this data
alone. Therefore, our recommendations should be tempered by your knowledge of business realities
and your market. Please let us know if we can answer any questions concerning the analysis or the
recommendations provided.

ANALYSIS 1 - RGV Inc. Sales Overview

Analysis – The chart represent the sales revenue earned from August 2004 through June 2006. The
decrease from 2005 to 2006 is not necessarily a negative result, the analysis is quantifying the first six
months of 2004 and 2006.

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Each year the RGV Inc. shows a continual growth in sales. For 2006 and 2004 only six months of data
was available. There is a substantial increase of the overall sales in 2005 since we have the full 12-
month reporting period data.

Reporting Periods
Aug 01 2004 Dec 31 2004
Jan 01 2005 Dec 31 2005
Jan 01 2006 June 04 2006

The total revenue we were able to calculate with the provided data:

Year Sum of Total Sale

2004 $166,425.30
2005 $598,008.45
2006 $501,359.29
Grand Total $1,265,793.04

Graphic – In 2006 1st quarter there was a slight decrease in sales, as it can be seen the following graph.
However, there is still enough time in 2006 to improve sales in the remaining two quarters.

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 Recommendation – Based on the summary, RGV Inc. has enough time to increase sales in the
remaining two quarters in 2006. There are a few recommendations that will need to be followed to assure
continual growth:

• Sales representative performance – This is important since they can slow or maximize
the companies’ selling power.

• Be on top of the marketable products and assess if less marketable should be in the
inventory.

• Motivate customers by providing incentives, this could get them more involved, and it will
help to attract other customers.

• Expanding the business to other countries.

ANALYSIS 2 - Sales Representative Performance

Analysis – Sales by representatives from August 2004 through June 2006 shows the performance of
each sorted from highest to lowest.

RGV Inc. Sales Representative performance indicates how each of the representatives performed by
adding all the quarters. Margaret Peacock was the best salesperson for the reporting period bringing
total revenue of $232,890.85. On quarter two there was a slight decrease as appose to the other sellers,
but there was continual growth in the other three quarters.

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Graphic

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 Sales Sum of Total
Representative Quarterly Sales
Margaret Peacock $232,890.85
Janet Leverling $202,812.84
Nancy Davolio $192,107.60
Andrew Fuller $166,537.76
Laura Callahan $126,862.28
Robert King $124,568.24
Anne Dodsworth $77,308.07
Michael Suyama $73,913.13
Steven Buchanan $68,792.28
Grand Total $1,265,793.04

There is a noticeable difference between the low four sales representatives. It does not seem to be showing any
significant progress since the item count is very low compared to the others.

Anne Bosworth and Steve Buchanan seem to be struggling to pick up the numbers. Michael Suyama and Robert
King are in the lower register as well, but they had a slight jump in one of the quarters.

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 Grand
Row Labels Qtr1 Qtr2 Qtr3 Qtr4 Total
Margaret Peacock 123 105 88 104 420
Nancy Davolio 102 105 60 78 345
Janet Leverling 116 86 46 73 321
Laura Callahan 69 93 53 45 260
Andrew Fuller 60 99 24 58 241
Robert King 45 66 24 41 176
Michael Suyama 42 55 25 46 168
Steven Buchanan 39 20 29 29 117
Anne Dodsworth 34 30 21 22 107
Grand Total 630 659 370 496 2155

Recommendation - RGV Inc. counts with nine (9) Sales Representatives. They are not current limited
to a specific group of costumers, giving them equal opportunities in an open worldwide market. Their
primary goal is to work with customers to assist them to find what they need for their business by offering
excellent customer service and provide a good customer experience throughout the sales process. The
following are suggestions to increase sales representative revenue.

• Make sure they have received the appropriate training to be able to handle the job. It is important
to establish a sales performance development plan across the board.

• Think about providing some type of compensation to motivate, but with this must be done with
care as you do not want to create a dependency.

• Define goals and expectation from every one of the sales representatives. Establishing new
goals based on changes in the market, and have sales reps keep up with them and hold them
accountable for their quota.

ANALYSIS 3 - Sales Revenue by Country

Analysis – RGV Inc. Sales Revenue by Country from August 2004 through June 2006, the data indicates
that there were countries that made significant purchases, USA being the top customer with sales
revenue of $245,584.61. The top three countries are USA (1st), Germany (2nd) and Austria (3rd). Some
countries are doing exceptionally; however, we can notice that there are some countries with low sales
like Poland, Norway, and Argentina.

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Graphic

Row Labels Sum of Total Sale

USA $245,584.61
Germany $230,284.63
Austria $128,003.84
Brazil $106,925.78
France $81,358.32
UK $58,971.31
Venezuela $56,810.63
Sweden $54,495.14
Canada $50,196.29
Ireland $49,979.91
Belgium $33,824.86
Denmark $32,661.02
Switzerland $31,692.66
Mexico $23,582.08
Finland $18,810.05
Spain $17,983.20
Italy $15,770.16
Portugal $11,472.36
Argentina $8,119.10
Norway $5,735.15
Poland $3,531.95
Grand Total $1,265,793.04

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 Recommendation - RGV Inc. is currently conducting sales in 21 countries. Sales have been successful
in some countries and others it seems the numbers are low. The following are recommendations to
increase sales revenue.

• Identify what are the customers' needs; conducting a survey may reveal some important
information about how to service them better.

• It was identified that the countries that showed low sales were not provided a discount.
Establishing an intelligent discount strategy for these customers for the potential to drive
more sales.

• Perform marketing campaigns to attract new customers. Before launching the

campaign, ensure that the marketing strategy to be used chosen is the most effective for
the countries where it is going to be executed.

ANALYSIS 4 – Total Discounts by Country

Analysis – RGV Inc. Sales Revenue by Country from August 2004 through June 2006, the graph shows
the total discounts by country. Once again USA (1st), Germany (2nd) and Austria (3rd) are taking the
lead in this category. It is essential to understand the implication of not implementing discount strategies
and how it might impact sales. Norway, Poland, an Argentina just like they are low in sells (previous
analysis) and noticeably they do not have a discount program.

Graphic

Recommendation – Discounts are implemented worldwide as a sales strategy. Based on the data,
sales have been successful in some countries, and in others, it seems the numbers are low. In this
category, we identified identify three countries that are not doing well in sells revenue, and they do not
have a discount strategy. Countries with significant sales numbers are currently utilizing discount
pricing strategies to bring more sales and revenue. The following are some of the recommendations for
Norway, Poland, and Argentina to improve sales and revenue by implementing discount programs.

• Identify what products and services that will be subject to participate in the discount
strategy are. The discount strategy should be aligned with business and client needs.

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 • Provide discount incentives to new and loyal customers to attract more customers.

• Perform research to learn what the competitors are offering and how are they pricing
their products and services.

ANALYSIS 5 - Product Sales Demand

Analysis – The Count of Product Sale pie graph summarizes the most demanded products among the
countries. We can identify Beverage, Dairy, and Confections products to be three most demanded and
Produce, Meat/poultry the least three. Also, we can see in the bar graph the sales revenue per product.

Graphic

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USA, Germany, and Brazil are the top three consumers of Beverage product. This graph helps in
understanding the presence of product categories in each of the countries RGV Inc. is making business.
It is important to note that the sales activity that some of the products are generating very little revenue.

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 Recommendation – Based on the product demands rates we will recommend:

• We will suggest paying attention to the products that are not selling and make an
additional assessment of the specific products that are not selling. If they are
seasonal products, make sure they are not occupying space in the inventory during
low seasons.

• Perform in-store demonstrations to increase product demand. Make sure the quality
of the product meets customer expectations. Increase variety with more competitive
prices.

• Advertising will help with increased product demands. Find volunteer that can
facilitate the propagation of flyers.

SELF ASSESSMENT

From completing the Excel project, I learned to used different reporting tools that I had never used
before. These are valuable tools that are now part of my arsenal, and I will be able to apply them in my
work environment. Knowing how to use pivot tables facilitates the analysis process when managing
large sets of raw data. I also learned how to look for patterns and trends while analyzing the data to
generate conclusions. The importance of obtaining reliable data will allow for the analysis process will
allow for better decision making for the development and improvement of the business.
Accurate data interpretation will facilitate the business to be at the forefront of new marketing trends to
be able to compete with other global markets. Learning how to handle raw data to create graphs,
charts, and pivot tables with slicers simplify data by using visual elements charged with reliable
information. With this knowledge, there is no need to make any decisions solely on experience and
intuition, but with data, it will help the organization to reach its full potential.

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