TotalSalesBikesBikesComp.sq. in.Comp.SalesAccess.Access.SalesCloth.Cloth.SalesPeriodYearCatalogsq. in.Salessq. in.sq. in.380320270198815,5755004606306802,87536063042011,56072044042021988198826,1405,9156,9256,2205,9806,1906,7105,8905,7805,2204,8402,5303,0304,2902,7802,3701,7503,5502,3802,5602,2601,8002,7001,9951,5802,4902,5903,3802,3002,6702,3702,2402,380660270250360190335108806403804198843404701751219896204303402903101989570430360680750550320340198934205504202903101989199047203702303603101760370320630230210101990269042035064022021011199038403202805302401901219904920300240430220230The table shows sales figures and the number of square inches devoted to each product line bycatalog for the last 3 years. Using appropriate decision making tools what conclusions can youdraw? Do the data indicate only a onetime fluke, or do they suggest that a serious problemexists? Your task is to explain current market dynamics affecting Spokes-N-Wheels and torecommend possible marketing decisions based on an exploration of these data. Yourrecommendations should focus on the amount of advertising space that should be allocated toeach product. Should some receive more space? Should some receive less? Show all yourworkings to earn more credit.678O Decision Making Techniques Assignment for Full-Time, Part-Time, and Distance.Submission: From 08th February to 20th May, 2022 @18:00 on Moodle. Failure to submit withinthe specified time will attract a mark of 0.Spokes-N-Wheels, Inc. markets bicycles and bicycle-related products through the mail. Theirmarket consists of serious cyclists throughout the United States. They compete successfully byoffering upscale specialized equipment at competitive prices and giving exceptional customerservice. Spokes-N-Wheels offers a complete line of cycling products. Complete bicycles are thelargest contributor to both revenue and profit; however, they carry other cycling-related productsin their catalog. Some items are carried even though they are marginally profitable since Spokes-N-Wheels wants to be able to meet all the customers' cycling needs. They do not want acustomer to go to a competitor for a unique item because most mail-order customers prefer todeal with a single company. If customers order one item from a competitor, they are likely toorder other items as well.Spokes-N-Wheels' products are divided into four product lines:+ Bicycles: Complete bicycles+ Components: Frames, wheels, gears, etc., that customers use to construct, enhance,or maintain their own bicycles+ Accessories: Helmets, water bottles, etc.+ Clothing: Cycling apparelEach product line has a product manager. Spokes-N-Wheels publishes four catalogs per year.Each product manager wants to get as much display space (measured in square inches) in thecatalog as possible. Although they have never analyzed it, they believe that the more displayspace devoted to an item, the more sales generated by the item. By coding orders, they are able toidentify from which issue of the catalog the customer is ordering.Recently, Spokes-N-Wheels' President and Chairman have become concerned about an apparentdrop in sales. Sales from the last catalog were at a 3-year low. They do not know whether this isa one-time fluke or a trend. To boost sales, they have been increasing the amount of displayspace devoted to complete bicycles, their largest revenue line but this does not seem to beenough.

Trend analysis is a method used in marketing to identify patterns and trends in sales and other…

Period Year 1988 1988 1988 1988 1989 1989 1989 3 1989 4 1990 1 1990 2 1990 3 1990 4 1 2 3 4 5 6 7 8 9 10 11 12 Catalog Sales 1 2 3 4 Total Bikes Bikes Sales 1 2 Comp. Comp. Sales sq. in. Access. sq. in. 5,575 500 2,875 6,140 460 2,530 5,915 630 3,030 6,925 680 4,290 340 1,580 6,220 620 2,780 430 2,490 570 2,370 430 2,590 420 1,750 550 3.550 5,980 6,190 6,710 720 370 2,300 2,380 370 2,670 2,560 420 2,370 5,890 760 5,780 690 5,220 840 2,260 320 2,240 280 4,840 920 1,800 300 2,380 240 360 1,560 380 2,700 320 270 470 340 360 3,380 420 230 630 420 1,995 320 350 Access Cloth. Cloth Sales Sales 720 660 510 420 250 380 175 290 310 320 340 290 310 360 310 230 210 220 210 530 240 190 430 220 230 880 640 440 270 360 190 680 750 550 630 640 The table shows sales figures and the number of square inches devoted to each product line by catalog for the last 3 years. Using appropriate decision making tools what conclusions can you draw? Do the data indicate only a onetime fluke, or do they suggest that a serious problem exists? Your task is to explain current market dynamics affecting Spokes-N-Wheels and to recommend possible marketing decisions based on an exploration of these data. Your recommendations should focus on the amount of advertising space that should be allocated to each product. Should some receive more space? Should some receive less? Show all your

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS