Interpret Trends

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Assessment Task One:
Interpret trends and market developments for a business – draft report

BBQfun is aiming to be the leading outdoor lifestyle retailer in Brisbane. With a range of products including BBQs, outdoor furniture and BBQ accessories, BBQfun hope to be positioned as the best in class for outdoor lifestyle retailing. Data analysis

Below is a table for the sample amount 50 customers spend on barbeque equipment (Brisbane area)

1) 485.00| 14) 525.75| 27) 462.20| 40) 389.15|
2) 521.90| 15) 434.70| 28) 420.15| 41) 358.25|
3) 394.15| 16) 431.60| 29) 497.00| 42) 534.50|
4) 447.35| 17) 511.90| 30) 460.20| 43) 516.35|
5) 418.40| 18) 560.60| 31) 432.10| 44) 403.30|
6) 582.80| 19) 606.35| 32) 477.10| 45) 321.65|
7) 478.20| 20) 324.70| 33) 402.65| 46) 442.70|
8) 388.20| 21) 492.65| 34) 292.70| 47) 410.30|
9) 449.70| 22) 572.75| 35) 448.20| 48) 537.40|
10) 387.80| 23) 676.40| 36) 495.50| 49) 441.60|
11) 433.05| 24) 427.45| 37) 51.80| 50) 627.70|
12) 580.25| 25) 628.10| 38) 602.60| TOTAL: 23638.55|
13) 495.20| 26) 746.70| 39) 611.80| |

From the table above, I can now calculate the central tendency: Mean: 23638.55/50 = 472.771
This means that the average spend on barbeque equipment in the Brisbane area is $472.77. This is good to know as it means that we can price our own equipment near to this price to ensure that our costs are reasonable and people can afford them. As well as the mean, I can also look at the range:

The highest spend is $676.40
The lowest spend is $51.80
Therefore the range in the amount that customers spend is $676.40 - $51.80 = $624.60. This is a big range and therefore I feel that $51.80 is an anomaly in this data. If I take this data out, then the new range will look as follows: $676.40 – $292.70 = $383.70.

This is more of a realistic range. From this we can make sure our prices for evenly between these ranges to ensure that our products can be targeted to customers with these different price expectations.

Comparison of two Brisbane areas customer data 2009-2010

Customer Number| BC: Household Income $| BC: Outdoor home ware spend $| Customer Number| SC: Household income $| SC: Outdoor home ware spend $| 1| | 17030.09| 1| 99724.51| 5983.47|
2| 132476.7| 15897.21| 2| 73762.43| 4425.74|
3| 120251.5| 14430.18| 3| 67561.46| 4053.68|
4| 119381.9| 14325.83| 4| 109280.6| 6556.83|
5| 126690.5| 15202.86| 5| 60555.51| 3633.33|
6| 129411.7| 15529.4| 6| 80996.57| 4859.79|
7| 119613.1| 14353.57| 7| 103748.9| 6224.93|
8| 115141.9| 13817.03| 8| 103622| 6217.32|
9| 119711.4| 14365.36| 9| 96541.08| 5792.46|
10| 133159.3| 15979.11| 10| 77158.45| 4629.5|
11| 135789.8| 16294.77| 11| 80695.68| 4841.74|
12| 120319.7| 14438.37| 12| 75180.6| 4510.83|
13| 134554.2| 16146.51| 13| 78664.88| 4719.89|
14| 112029.7| 13443.57| 14| 76461.98| 4587.71|
15| 130243| 15629.15| 15| 90893.98| 5453.63|
TOTAL| 1890692| 226883| TOTAL| 1274849| 76490.85|
AVERAGE| 126046.1| 15125.53| AVERAGE| 84989.91| 5099.39|

Comparison of two Brisbane areas [ 1 ]
From the table and the chart above, you can see the average amount that people earned and then spent between the two cities in 2009-2010. From this I can conclude that those who live in the Brisbane city area earn a lot more than those in the Sunshine city area. The difference in average wage is $41056.19. This is a lot of difference between the two cities. As well as looking at the average earnings, you can also see the average; customers are willing to spend in these different areas. Those who live in Brisbane city are willing to pay an average of $15125.53 compared to an average of $5099.39. This is huge difference of $10026.14. I can conclude from these results that those living in the Brisbane City area are much more likely to spend more in store. This...
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