Business Growth overview

WEEK 1 – Researching Marketing Questions

WEEK 1 – Researching Marketing Questions

MKT/ 571: Marketing

Calvin Jefferson

June 8, 2020

Instructor: Catherine Burr

WEEK 1 – Researching Marketing Questions

WEEK 1 – Researching Marketing Questions

Memorandum

To: Senior Vice President (SVP) of Marketing

From: Calvin Jefferson

Date: June 8, 2020

Re: Business Growth Overview Dataset

YTD: This memorandum provides an overview into the growth of business, from January

to June of 2015 as compared to January to June of 2016, year to date (YTD). Data is also

provided for the quarter to date (QTD) for April, May, and June of 2015 to 2016 and month to

date (MTD) from June 2015 versus that of June 2016. The data that has been provided, has been

interpreted to identify the major areas of significant increase or decrease, trends, and insight for

continued growth as a business entity (Berghoff, Hartmut, Philip Scranton, and Uwe

Spiekermann, 2012).

Major Increases and Decreases in Revenue

The global breakout showed the total revenue for the period of January to June of 2015 as

$12.12 million, increasing to $13.64 million for the same period in 2016. Increases were evident

WEEK 1 – Researching Marketing Questions

in the domestic and the international markets. The domestic market average sales per day

increase of 9.98% were substantially higher than the international market average sales per day

increase of 2.5%. Most of the customer rank selling activities improved. The leaders were

acquisition and service. Acquisition grew from $6,427 of revenue per day in 2015 to $10,177 in

2016, an increase of 58%; service improved from $11,225 to $12,917, an increase of 12%. All

year to date data for the customer class industries grew with the commercial coming in at a 53%

increase. Data for the top customers showed sales growth except Delta Appliance with a reported

loss of $185.91, at 5.3% (Berghoff, Hartmut, Philip Scranton, and Uwe Spiekermann, 2012).

QTD: Most areas in the QTD dataset for the period of April, May, and June of 2015 to

2016 are showing growth. Some decreasing numbers do exist. The customer class industry of

resell-industrial hygiene experienced declining sales of -8.4% and a loss of gross profit by -

14.2%. Top customers who might be a cause for concern for losses are Delta Appliance and

Francois and Sons. Delta is down in sales by -21% and Francois and Sons is down -7%,

respectively. The greatest increase shown in top customer was for a check with a sales increase

of 2,835.2% and a gross profit increase of $3,186.6%.

Trends that are Evident in Terms of Revenue

During 2015 and the first two quarters of 2016 the organization saw many changes

regarding its revenue earnings. This was possibly due to the new strategic operation it had

adopted recently, though as a whole revenue saw growth there was a period of decrease. The

main reason for this was that there was a problem with the investment of funds. Management had

WEEK 1 – Researching Marketing Questions

not financed the new operations in a timely manner, and it affected the plan by slowing down the

process. Domestic and commercial customers saw the most improvement, the first quarter of

2016 it saw earnings of $12,085,137 domestic and $7,195,592 commercial customers. During the

second quarter, it increased again, $13,930,466 Domestic and $8,130,973 Commercial

(Berghoff, Hartmut, Philip Scranton, and Uwe Spiekermann, 2012).

Additional Analysis

If I were Senior Vice President (SVP) of Marketing I would build a marketing goal. I see

the success in these areas through improvements that were made in advertising and marketing.

This helped bring more focus to our products and improved the products vision. There were

some some deficits, in regard to the service sector, it had two years of slow growth. I recommend

using the additional funds gained to improve the areas which are in a deficit.

Part 2:

Starbucks is the leading premier roaster of coffee, marketer and retailer of specialty

coffee in the world. Starbucks was founded by Jerry Baldwin, Gordon Bowker, and Zev Siegel in

1971. Their first store opened in a historic place called Pike Place Market in Seattle

(Allison,2008). Starbucks employs 346,000 people worldwide. Starbucks revenue for the quarter

ending March 31, 2020 was $5.996B, a 4.92% decline year-over-year. Starbucks revenue for the

twelve months ending March 31, 2020 was $26.663B, a 4.34% increase year-over-year.

Starbucks annual revenue for 2019 was $26.509B, a 7.24% increase from 2018 (Simon, 2019).

Starbucks is a Corporation, each individual store is ran the same in some way shape or form;

WEEK 1 – Researching Marketing Questions

from creating the same experience for each customer to knowing how to make each drink the

same because each Starbucks carries the same type of products to produce the same taste in ever

cup.

References

Berghoff, Hartmut, Philip Scranton, and Uwe Spiekermann, eds., The Rise of Marketing and

Market Research (New York: Palgrave Macmillan, 2012), ISBN 978-0-230-34106-7

Simon, Bryant. (2009). Everything but the Coffee: Learning about America from Starbucks. 320

pages. ISBN 0-520-26106-2.

Allison, Melissa (March 9, 2008). "Starbucks co-founder talks about early days, launching

Redhook and Seattle Weekly, too". Seattle Times.