RGV

INC
Memo
To: RGV Inc
From: Ivette Sanchez
CC:
Date: 6/8/23
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 May 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 Mexico 2006

Analysis

For our first analysis we looked at your sales in Mexico in the year of 2006. Based on this
analysis, we concluded that the categories that have been affected with a negative impact on
revenue due to discount rates are Beverages, Dairy Products and Meat and Poultry. The areas
that have not been affected by this include Condiments, Grains and Cereals and Produce.

Graphic

350000
300000
250000
200000
150000 Sum of Total revenue
100000 Sum of Revenue minus
50000 discount
0
es ts ns ts ls ry uce od
rag men ctio duc rea oult d a fo
o e o
ve di nf
e Pr s/
C t/
P Pr Se
Be Con Co airy rain Mea
D G

Recommendation

1
 Because of the need of providing discounts in all the areas due to competition, in order to
increase your sales, we recommend focusing on the least affected areas. These areas include
Condiments, Grains and Cereals and Produce. If you focus on selling on these areas more than
the rest, you will see more gains than loses in your revenues. Since the discounts would not
affect you that much. Try to focus less on the sales of your affected areas which include
Beverages, Dairy Products and Meat and Poultry.

ANALYSIS 2 Venezuela 2006

Analysis

For our second analysis we looked at your sales in Venezuela in the year of 2006. Based on this
analysis, we have concluded that the categories that have been affected with a negative impact
on revenue due to discount rates are Beverages and Dairy Products. The areas that have not
been affected by this include Grains and Cereals and Produce.

Graphic

350000

300000

250000

200000

150000 Sum of Total revenue

Sum of Revenue minus
100000 discount
50000

0
es ts ns cts als try ce od
rag men ctio du ere oul odu afo
ve di o Pr
fe Pr s/C at/P Se
Be Con Con iry i n e
a
Da Gr M

Recommendation

Because of the need of providing discounts in all the areas due to competition, in order to
increase your sales, we recommend focusing on the least affected areas. These areas include
Grains and Cereals and Produce. If you focus on selling on these areas more than the rest, you
will see more gains than loses in your revenues. Since the discounts would not affect you that

 Page 2
 much. Try to focus less on the sales of your affected areas which include Beverages and Dairy
Products.

ANALYSIS 3 United States 2005

Analysis

Based on our third analysis about United States during the year 2005, we have identified that
the sum of discount level has affected the selling of 4 products in a very negative way. These
areas are Beverages, Confections, Dairy Products and Seafood. The areas that were not
majorly affected were Produce and Grains and Cereals.

Graphic

Total
30

25

20

15
Total
10

0
es ts ns ts ls try ce d
ag en tio duc rea ul du f oo
er im e c o e
/P
o
Pr
o ea
ev nd nf Pr /C at
S
B Co Co i ry i ns e
a
Da Gr M

Recommendation

Due to the need for providing discounts because of the high competition in the market, we
recommend focusing on the areas that would give you more profit. The sum of discounts level
is high in Beverages, Seafood and Dairy Products. We need to stop focusing on the sale of
these and focus on the selling of Produce, and Grains and Cereals. The less sum of discounts
accumulated will give you more profit on your revenue.

 Page 3
ANALYSIS 4 Italy 2004
For Analysis 4 we studied the sales of Italy in the year 2004. Based on this we have identified
that in the categories for Beverages and Dairy Products the discount rate is having a negative
impact on your revenue. The categories that are not as affected are Produce, Grains and
Cereals, Meat and Poultry and Condiments. These last areas are the ones making high your
profits.

Graphic

350000
300000
250000
200000
150000
Sum of Total revenue
100000 Sum of Revenue minus
50000 discount
0
s s s s s try uce ood
ge nt on ct al ul
e ra ime ecti o du ere o od eaf
e v n d nf Pr
s / C at / P Pr S
B Co Co airy rain Me
D G

Recommendation

Because of the need of providing discounts due to the strong competition of the business
market, we recommend on focusing on the areas that are making profit. The areas that are
building up your profit are Produce, Grains and Cereals, Meat and Poultry, and Condiments.
Your focus should be on impulse the sales of these areas and stop focusing on the ones that are
not producing. The areas of least interest should be Beverages and Dairy Products.

Analysis 5 Brazil 2005

For analysis number 5 we are discussing the sales of Brazil in the year 2005. Based on our
analysis we have identified that the margin of loss is greater in the areas of Dairy Products and
Beverages. The discount rate is having a negative impact on your revenue and there is not an

 Page 4
 extreme difference on the rest. The ones that give you the most profit are the ones with less
margin. This include Produce, Grain and Cereals and Condiments.

Graphic
350000
Sum of Revenue minus
300000 discount
250000
Sum of Total revenue
200000
150000
100000
50000
0
es ts ns cts al
s try ce od
rag men ctio du ere oul odu afo
ve di o Pr
fe Pr s/C at/P Se
Be Con Con iry i n e
a
Da Gr M

Recommendation

Providing discounts is one of the reasons of gaining customers. In this case, the discounts
given affect the sales of Dairy Products and Beverages. They are not making enough profit
and you should not be focusing on the sales of these products. The ones that you should focus
on are the ones that are not being affected by this discount margin. These categories are the
ones that will make a difference in your profit. The areas of interest are Produce, Condiments
and Grain and Cereals.

Analysis 6 Germany 2005

Based on the analysis we did for Germany, in 2005, we see that the sales made by Anne were better
when selling Cite de Blaye and Piti Chinois, which are in the Beverages and Produce categories. These
products increased the revenue for the company and are the best bet to increase on sales. The Seafood
and Condiments categories are the ones that show a negative impact on your Revenue.

Graphic

 Page 5
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Recommendation

Regarding the sales by individual salesperson, in this case Anne, we can recommend focusing on
selling the categories of Beverages and Produce. These categories made an increase on your revenue
and represent the profit being gain by your company. However, in order to avoid losses, your company
could start on avoiding the urge to sell Seafood and Condiment. The concentration of sale should be on
Anne’s best seller products so it can give positive results. They seem to have less competition in the
area she offers the product and turns out constructively.

SELF ASSESSMENT
From completing the Excel project, I learned that for a company not all items being sold are
giving you a profit. Even if sales are high on an item, the item must have low sum of discount
level so that you could be gaining money with that sale. The recommendations of focusing on
selling the items of interest is important, since that’s how you will see an increase on profit. I
also learned that for most countries the areas of interest or sell are similar, since the
competition is worldwide similar. Companies should be studying these types of data, daily,
weekly, monthly and yearly. These types of information will end up being a decision-making
tool since that’s how they will decide on what to focus. They will have an idea on what they
should be trying to sell more and learn how to get a profit from each sale.

 Page 6