Memo

To: RGV Inc.

From: Danny R. Rios

To: Dr. Sandra E. Trevino

CC:

Date: October 28, 2020

Recommendations to Increase RGV Inc.’s Sales Revenue

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 research 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: Price Increases Overtime

Analysis

This is the summary of RGV Inc.’s price increases data ranging from the third Q3 of
2004 to Q2 of 2006. The lowest price has been observed in the second quarter to the third quarter
of financial year 2005. On the other hand, the highest price increment is observed in the financial
years 2004 and 2005 from sales data. Moreover, our line graph “Quarter-Year Price Increases
from (Q3, 2004 - Q2, 2006)” has shown that the lowest peak to range from Q2 to Q3 in 2005.
This graph has also shown that the highest peak for price increases was found on Q4 2005 to Q1
2006. In the context of interpreting this data based on the information derived from quarter-year
price increases spreadsheet, the price has done little to increase sales. That is to say that the
company’s prices continue to increase from 2004 through 2006 but the price is yet to reflect in
sales revenue as deserved. However, there has been a slight price increase throughout the three
financial years except for a slight decrease from Q2 to Q3 2005.

Graph

Quarter-Year Price Increase from (Q3, 2004 - Q2, 2006)

$12,000 Q1;2006; $11,833

$8,000 Q4;2005; $7,774

$6,000 Q1;2005; $5,337 Q3;2005; $6,272

$0
Q3;2004 Q4;2004 Q1;2005 Q2;2005 Q3;2005 Q4;2005 Q1;2006 Q2;2006

Graph 1: Quarter-Year Price Increase from 2004 through 2006

Recommendations

● RGV Inc.’s should provide incentives to its staff when they achieve baseline quotas.

● The company should introduce new sales training such as Cross-Sell training so as to
increase sales throughout the financial year

● It is also recommended that sales employees have sales targets to achieve with
commission beyond the baseline target in order to motivate them to make sales.

Analysis 2: Quarter-Year Sales Revenue

Analysis

From our “Quarter-Year Sales Revenue (Q3, 2004 - Q2, 2006),” the quarter-year sales
were on the rise from the Q3 of 2004 to the Q2 of 2005 before a slight drop in quarter three
2005. Next, sales increased once more up to quarter one of 2006 before another slight drop in
the second quarter of 2006. In the last two quarters of 2004, the sales were at $53,469 and
$112,957 in Q3 and Q4 respectively. As for 2005, the sales totaled to $141556, $148,150,
$134,129, and $174,174 in quarter one, quarter two, quarter three, and quarter four respectively.
Conclusively, in the year 2006, the sales were at $261,126 and $240,233 in the Q2 and Q3
respectively.

Graph

Quarter-Year Sales Revenue (Q3, 2004 - Q2, 2006)

$250,000

$200,000

$150,000

$100,000

Q3;2004; $53,469
$50,000

$0
Q3;2004 Q4;2004 Q1;2005 Q2;2005 Q3;2005 Q4;2005 Q1;2006 Q2;2006

Graph 2: Quarter-Year Sales Revenue from 2004 to 2006

Recommendations

Based on my observations, the declined sales in Q3 2005 and Q1 2006 is because most
store outlets were not giving their customers as many discounts as they are in quarter three and
quarter four of 2004, and quarter one, quarter two, and quarter four of 2005, as well as the
second quarter of 2006. In order to prevent any other possible decline in quarter three, I
recommend the following:

● The company should arrange physical visits throughout the countries of sales for two
reasons: one, to introduce new methods of sales; and two, to expose its sales personnel to
different products.
 ● It is also recommended that RGV Inc. provide training that will in turn advance its
employees and allow future growth.
● I also recommend that the company give giveaways and offer discounts. This way,
customers will always purchase higher quantities.

Analysis 3: Sales by Countries

Analysis

Table 1: Sales by Country

The table above represents sales by country for the period beginning from the Q3 of 2004
and ending in the Q4 of 2006. Overall, the United States emerged as the top buyer with
accumulated sales amounting to $214, 0.12.69, Germany came second with totaled sales of
196,867.69, Austria was third with sales amounting to $109,671.27 and Brazil also registered a
sales revenue of $87,514.55 throughout this period. In 2004, Germany recorded the highest sales
at $ 33, 416.95 and the United States came second with a record sale of $31,571.93. In the
second year, Norway, Poland, and Argentina did not record any sales while Denmark, Portugal,
and Spain recorded the lowest sales of $1,186.80, $1,589.52, and 2,976.20 respectively. In 2005,
the United States emerged as the top buyer with the company making sales amounting to
$118,376.01 while Germany emerged as the second top buyer with sales amounting to
$106,011.79. Austria, Brazil, Canada, and France also improved tremendously with total sales of
$53, 502.95, $37,250.93, $35,333.96, and $38,514.02 respectively. However, Poland, Portugal,
Spain with still registered low sales amounting to $1,758.40, $1,267.00, and $3,951.55
respectively. In 2006, the company reported most of its sales from the USA amounting
$95,636.67 while in Germany the company recorded a sale of $90,855.90 and a revenue of
$56,168.33 from Austria. In the same year, Poland and Portugal reported low sales of $2,264.95
and $2,691.70 respectively.

Recommendations

● I recommend the company to offer reductions for various products for those
countries that are thriving well such as the United States, Germany and Austria to
avoid decreased sales in the third quarter.
● I recommend that marketing should be included in those countries that have
reported low sales such as Norway, Poland, Spain, and Argentina as well as those
improving tremendously, including Brazil, Canada, and France. Moreover,
discounts should also be increased.
● I also recommend in every other country customer to be offered with discounts
● Also, it is very recommendable for the company to provide availability of credit
that will be very crucial in low selling countries, especially both long-term and
short-term credit.

Analysis 4: Sales by Categories

Analysis

After examining spreadsheets with sales by category, I found the company needed to pay
attention to the lowest selling products including: Aniseed Syrup, Chef Anton's Cajun Seasoning,
Chef Anton's Gumbo Mix, Filo Mix, Gustaf's Kn?keybr? Tunnbrod, and Singaporean Hokkien
Fried Mee. They all recorded accumulated sales of $3,044.00, $8,567.90, $5,347.20, $3,204.95,
$7,122.36, $4,601.70, $8,575.00 respectively.

Graph

sales by categories: low labelsS

Tunnbr?d

Gustaf's Kn?ckebr?d

Filo Mix

Chef Anton's Gumbo Mix

Chef Anton's Cajun Seasoning

Aniseed Syrup

Graph 3: Sales by Country: Lowest Selling Products

Recommendation

Filo mix is the lowest selling product based on my observation in the data provided. This
product is under grain and cereals and totaled to a sale revenue of $3204.9 throughout the entire
period. I recommend that:

● RGV Inc. should offer a coupon for these low labels when they are purchased
with other products or frequent discounts of these products.
● If the sales of these products do not improve, then, RGV Inc. should consider
discontinuing them.

Analysis 5: Sales by Salesperson

Analysis

Margret sold the most products in the year 2004-2006 which totaled $230,263.41. In Q3
2004 to Q2 2005, she sold the most products than any other salesperson: $14,263.61, $28,605.49,
$41,709.55 respectively. She was closely followed by Nancy, Janet, Andrew, Robert, Laura,
Anne, Michael, and Steve: with a totaled sale of $219,316.28, $201,493.19, $167,486.36,
$123,196.18, $116,348.87, $77,308.07, $73,913.13, and $68,792.28 respectively.

Table

Table 2: Quarter Sales by Salesperson

Graph

Chart Title
Andrew
Anne
1% janet
15% 19% Laura
Margaret
17% 7% Michael
Nancy
12% Robert
4% Steve
10% 15%

Figure 4: Sales by Salesperson

As observed from this graph, Margret emerged the leader by 19% of the total sales made
followed by Nancy at 17%, then Janet 15%, Andrew 15%, Robert 12%, Laura 10%, Anne 7%,
Michael 4%, and Steve 1% throughout the entire period. As such, Margaret, Nancy, and Janet
combined contributed to $651,072.88 of the total sales which makes them the tops performance.
On the other hand, Anne, Michael, and Steve were the lowest with a total sale amounting to
$220,013.48.

Recommendations

● Salespersons who are low performers should be offered training in order to make
more sales.
● More discounts should be given because the top performers sold products on more
discounts

SELF-ASSESSMENT

I have learned the relevancy of technology in terms of software that helps us work more
accurately and efficiently through completing this assignment with the assistant of Microsoft
Excel. Moreover, the vast amount of data was easy to compute using Excel spreadsheets in a
short time than it would take while computing data manually. I was therefore able to interpret the
relevant information in charts, graphs, and tables as well as easily and quickly summarize RGV
Inc. sales data. Therefore, I was able to make comparison and trends in sales such that it was
easier to determine what affected sales negatively or positively. In this context, I was able to
draw conclusions based on data rather on theories which were very impactful in making
recommendations for the company. Further, I realized that companies need important tools such
as Excel. With this tool, changes are made as needed because it is very effective for such
companies to quickly track performance. Then, all other stakeholders can acquire the meaning
behind numbers through graphical representation. Most importantly, the leadership of a company
is able to make better decisions that ensures the success of the company in both short-run and
long-run. Overall, I will continually use software such Excel to summarize and analyze data to
make better informed decisions.