Running head: Marketing strategy analysis: Pastas R Us, Incl.

Marketing strategy analysis: Pastas R Us, Incl.

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13th September, 2022

Marketing strategy analysis: Pastas R Us, Incl. 2

Scope and Descriptive Statistics

A vital component of every business' success is marketing. An excellent marketing plan

can boost the business venture's revenue and sales volume. This research aims to assess the

success of Pastas R Us, Inc.'s loyalty card marketing strategy. In order to determine the strategy's

practicable actionable prospects, a statistical method is used in the analysis. Key variables are

shown in the restaurant database, including average sales per customer, sales per square foot, the

median age of the customers within three miles, and the area coverage in terms of square feet.

Additionally, the data displays the increase in sales year over year, the proportion of Loyalty

Card net sales, the median household income, and the percentage of Bachelor degree holders

within three miles. The annual sales are calculated from this data by multiplying the sales per

square foot by the square footage of the region covered.

Pastas R Us, Inc. made an average of $105938.32 in sales over the 74 restaurants.

According to Table 1, there was $420.31 in average sales per square foot. Additionally, the

consumers' median ages ranged from 24.70 to 43.50, with 24.70 being the least and 43.50 being

the maximum. The target age range is 25 to 45 years, which includes this age range. The average

percentage of adults with college degrees who satisfied the required demographic criteria was

26.31%.
Marketing strategy analysis: Pastas R Us, Incl. 3

Table 1 Descriptive statistics

SqF Sales/ SalesGro LoyaltyC Sales/ MedIn Med BachD Annu

t Person wth% ard% SqFt come Age eg% al
Sales

Mean 2580. 7.044 7.414 2.026 420.305 62807.70 35.20 26.311 105938
473 3 1 1.314
Standar 374.9
0.297 6.625 0.552 137.240 17904.27 3.655 7.005 280423.
d 19 3 448
Deviati
on
Skewne 0.527 0.904 0.494 -0.757 1.236 0.298 -0.167 0.141 0.361
ss
Median 2500. 7.000 7.030 2.075 396.010 62757.00 35.00 26.500 103574
000 0 0 9.205
Maxim 3799. 7.970 28.810 3.380 987.120 114353.0 43.50 40.000 174660
um 000 00 0 0.000
Minimu 1251. 6.540 -8.310 0.290 178.560 32929.00 24.70 14.000 499968.
m 000 0 0 000
Q1, 1st 2400. 6.825 3.980 1.858 332.845 46953.00 32.52 20.250 877477.
Quartil 000 0 5 575
e
Q3, 3rd 2735. 7.178 11.423 2.325 483.563 76194.25 37.52 30.750 122886
Quartil 250 0 5 6.960
e
Interqu 335.2 0.353 7.443 0.468 150.718 29241.25 5.000 10.500 351389.
artile 50 0 385
Range

Figure 1 depicts the box plot used to further analyze the annual sales. The distribution of

annual sales data is skewed to the right. This suggests that the modal sale is less common than

the mean sale (Ali & Younas, 2021). The box plot's interquartile range provides a clearer

explanation of the annual sales dispersion. It displays how sales are distributed between the two

quartiles.
Marketing strategy analysis: Pastas R Us, Incl. 4

Figure 1 Box plot for the annual sales

The sales per square foot histogram in figure 2 likewise exhibit a skew to the right. The

histogram displays one higher outlier when using the SIRQ rule, which is

Q3 +1.5 IR=483.56+1.5 ( 150.72 )=$ 709.64 f t −2 . The outlier's area is 1251 square feet, which is

smaller than the normal restaurant space, which is 2580.57 square feet.

Figure 2 Histogram of sale per square feet

Marketing strategy analysis: Pastas R Us, Incl. 5

Analysis

In addition to forecasting, regression models are crucial for understanding the

relationship between variables (Zhao et al, 2019). We first create a correlation between the

number of people with a college education in a population for each restaurant and its sales per

square foot in order to properly assess the marketing strategy at Pastas R Us, Inc. The scatter plot

in figure 3 demonstrates a favorable correlation between sales per square foot and the target

population's share of college graduates. However, only 11.69% of the data points in this

relationship's coefficient of determination R^2 lie within the line of regression. It is clear that

people with college educations are the main consumers of the soups, salads, and noodle-based

items that Pasta R Us, Inc. offers.

Figure 3 Bachelor degree graduate vs sales per square feet for each restaurant

The plot in figure 4 below depicts a negative association between the sale per square foot

and the median household income. Sales reported per square foot are decreased when income
Marketing strategy analysis: Pastas R Us, Incl. 6

rises. Due to the R^2's low value, the negative correlation is similarly modest (Zhao et al, 2019).

This demonstrates that marketing to households with median incomes that are significantly

greater than the national average would probably result in a decline in sales.

Figure 4 Median household income vs sales per square feet for each restaurant

Figure 5 illustrates how the sales per square foot somewhat decreased as a result of the

rising median age. Although there is no proof that ages outside the desired range have an impact,

old age is expected to have a significant impact on sales per square foot.
Marketing strategy analysis: Pastas R Us, Incl. 7

Figure 5 Median household income vs sales per square feet for each restaurant vs sales per

square feet for each restaurant

A modest negative correlation exists between a restaurant's percentage of loyalty cards

and sales growth. As the number of loyalty cards issued to restaurants rises, figure 6's growth in

sales shows a modest decline.

Figure 6 Loyalty card percentage vs the sales growth percentage.

Marketing strategy analysis: Pastas R Us, Incl. 8

Recommendations and implementation

It is more effective to focus on populations with higher rates of college graduates. Sales

per square foot are the primary metric used to assess each restaurant's performance. Opening a

new restaurant in an area with a higher concentration of bachelor degree holders would be more

profitable. The growth in sales is negatively connected with the loyalty card. This marketing plan

has to be examined. To assist cut operating costs, the loyalty cards should only be given to

regular customers who have a purchase history of at least 10 meals per month.

People in their late 20s and early 30s make up a significant portion of the market for the

pasta products in the target age range of 25 to 45 years (figure 6). To ensure a long-term stable

market, more young individuals should be recruited because an older median age of around 45

years old contributes to lower sales per square foot. Additionally, data on the percentage of

loyalty card holders who eat more than 10 meals each month should be gathered to determine the

right demographic target audience. The database survey on daily restaurant purchases can be

used to gather this information.

References:

Ali, P., & Younas, A. (2021). Understanding and interpreting regression analysis. Evidence-

Based Nursing, 24(4), 116-118.

Zhao, J., Yang, Z., & Tang, T. (2019, October). Scattering Prediction from Data of Scale Model

Based on Regression Method in SPSS. In Chinese Intelligent Systems Conference (pp.

361-370). Springer, Singapore.