Part 1
In the current year, the first major area of an increase in revenue is the domestic segment. This segment’s revenue represents a 10% increase over the revenue earned during a similar period in the last year. The revenue from the international segment grew slower than that from the domestic segment did, increasing only 2.5%.
Looking at the customer ranks, the major areas of growth in the current year are the “acquire” and the “serve” ranks. The average daily revenue from the “acquire” rank is $10,177, representing a 58.4% increase over the average revenue during a similar period in the last year. The second fastest growing customer rank is “serve.” In the year to date, this rank’s average daily revenue is $12,917, and this is a 15.1% growth over the average daily revenue in a similar period in the past year. All of the customer ranks registered revenue growth, and their contribution to the total revenue remained largely unchanged.
A breakdown of the revenue by the customer classes suggests that the “other” category registered the largest growth of 197%. During the first six months of the current year, the “other” customers earned the company an average of $577 in revenue per day, up from $194 during a similar period in the preceding year. However, the growth in the “other” customers’ revenue masks the large variation in the revenue from this segment and the revenue from the other segments. This segment accounts for just 1% of the revenue earned in the year to date, and it is a little under one-twentieth of the revenue from the segment that registered the least growth of 1.8%. The “government” segment registered the second highest growth rate because its average daily revenue of $3,295 represented revenue growth of 23.4%. In the third place is the “education” segment whose average daily revenue in the first six months of the current year was 16.2% higher than its average daily revenue in a similar period during the last year. The other major areas of growth among the customer classes were the “Commercial,” “Reseller – Other,” and “Industrial Labs” segments. The growth rates in these segments stand at 9.9%, 9.9%, and 9.5% respectively, and they still mask some important patterns in the average daily revenue. For instance, the “Commercial” segment and the “Reseller-Other” segment added at least $5,000 and $996 in daily revenue respectively, but the two segments have the same growth rates. Considering the potentially misleading nature of the relative comparison of the periodic revenue in various segments, it is helpful to take the analysis a step further and consider the absolute figures.
From an examination of the major customers’ revenue contribution, it is apparent that Check Gmbh provided the highest increase in revenue; this customer’s revenue per day was a 52.9% increase over the revenue at a similar period of the last year. The other customers whose revenue represented significant growth were Francios and Sons, Here4U, Fish Limited, XYZ Inc, and Euro Ltd, and their revenue growth was 50.6%, 33%, 29%, 18.9%, and 13.4% respectively. The revenue from one customer – Delta Appliance – declined by 5.3%. Again, it is helpful to examine the absolute figures in order to uncover the important insights that the growth percentages have not captured accurately.
An important trend in the data is that the composition of the annual, quarterly, and monthly revenue is largely the same. At any given time, the domestic segment accounts for between 87% and 89% of the revenue. Similarly, the “expand” and “retain” ranks and the “Commercial” customer class account for most of the annual, quarterly, and monthly revenue. The insights that would help formulate marketing strategies to continue growth are the ones indicating the revenue changes in each of the 9 customer classes. The strategies used in the classes with the most growth could be adapted and used in the classes with slow growth.
As the senior vice president of marketing, the additional analysis I would like in order to build a marketing goal and strategy is the one cross-tabulating the customer ranks and the customer classes. The information on the customer ranks would be more helpful for strategy formulation if there were additional insights showing how the customers in each rank use the company’s products. An analysis that cross-tabulates the customer ranks and customer classes would provide these additional insights, and in turn, I would be able to formulate an effective marketing strategy.
Part 2
The company I have selected is Proctor & Gamble (P&G), and its headquarters are in Cincinnati, Ohio. I have also selected Cascade, a dishwasher detergent. The three types of the Cascade detergent are Actionpacs, Gels, and Powder (Cascade, 2019). While Actionpacs has all the attributes of Gels and Powder, it is unique because it is the only one that is tough on burnt-on messes, leaves silverware sparkling clean, helps keep dishwasher sparkling, and is best on dishwasher safe pots and pans (Cascade, 2019). There are three versions of Actionpacs – Platinum, Complete, and Base – and two versions of Gels and Powder – Complete and Base.
P&G has 97,000 employees, and it is a joint-stock, publicly traded company. During the last financial year, the company’s revenue was $67.68 billion (P&G, 2019). Most of the revenue came from the “Fabric and Home Care” and the “Baby, Feminine & Family Care” segments that accounted for 33% and 27% of the revenue respectively. The contribution of these segments means that P&G’s business is concentrated in a few areas. P&G’s website (https://us.pg.com/brands/) provides vast information about its product offerings.
References
Cascade (2019). Our Detergents. Accessed https://cascadeclean.com/en-us/about-cascade/our-detergents
P&G (2019). Annual Report. Accessed http://www.pginvestor.com/Cache/1001256102.PDF?O=PDF&T=&Y=&D=&FID=1001256102&iid=4004124
