Olympic Museum Shop
Question 1
The directors of the Olympic Museum would like to know how to increase the shop performance since the shop should be an important source of income. What do you suggest? In particular, consider the product assortment, space allocation and point of sale information.
Now we are in the role of the product manager for this company. We will try to give appropriate recommendations for improving performance. For the product assortment, we are considering both the quantitative data and the qualitative customer feedback information to establish which products/categories are performing well. According to our analysis the most profitable product department is clothes and accessories, with approximately 43.39% sales in volume. In this department the most selling product category is T-shirts, that comprises 19.5%. The next successful category is gadgets, pins and watches, which contributes to 35.95% of sales. And the least profitable group is stationery, with 16.01% sales in volume. We didn`t consider such groups as games and puzzles, art reproduction, stamps and coins, because these categories generate insignificant profit and produce small contribution. However, the separate contribution of the separate contribution of postcards and stamps generate revenue by 33% and 11% respectively. We decided to eliminate the following groups of product: umbrellas, pins, caps, sweatshirts and pullovers due to low sales and low customers demand. Instead of eliminated product we decided to introduce new products. First of all, it will be products intended for children. There are some specifications: 1. toys, which represent Olympic characters; 2. clothes for kids; 3. candies and sweetness Secondly, we recommend to develop promotional items like pens, pencils, calendars, notebooks and we propose to give these items free of charge, for those who will purchase products for more than 20 euros. As it seen from the case the major part of the
The directors of the Olympic Museum would like to know how to increase the shop performance since the shop should be an important source of income. What do you suggest? In particular, consider the product assortment, space allocation and point of sale information.
Now we are in the role of the product manager for this company. We will try to give appropriate recommendations for improving performance. For the product assortment, we are considering both the quantitative data and the qualitative customer feedback information to establish which products/categories are performing well. According to our analysis the most profitable product department is clothes and accessories, with approximately 43.39% sales in volume. In this department the most selling product category is T-shirts, that comprises 19.5%. The next successful category is gadgets, pins and watches, which contributes to 35.95% of sales. And the least profitable group is stationery, with 16.01% sales in volume. We didn`t consider such groups as games and puzzles, art reproduction, stamps and coins, because these categories generate insignificant profit and produce small contribution. However, the separate contribution of the separate contribution of postcards and stamps generate revenue by 33% and 11% respectively. We decided to eliminate the following groups of product: umbrellas, pins, caps, sweatshirts and pullovers due to low sales and low customers demand. Instead of eliminated product we decided to introduce new products. First of all, it will be products intended for children. There are some specifications: 1. toys, which represent Olympic characters; 2. clothes for kids; 3. candies and sweetness Secondly, we recommend to develop promotional items like pens, pencils, calendars, notebooks and we propose to give these items free of charge, for those who will purchase products for more than 20 euros. As it seen from the case the major part of the