whs31@georgetown.edu

Vital Vittles Findings: Recommendation I

Blog Post created by whs31@georgetown.edu on Mar 30, 2016
  • Recommendation 1: Offer a discount to customers who buy either lunch and chips/candy or lunch and chips/candy + a drink
    • Why: 0.8% of transactions involved customers who bought a drink, chips, and a lunch-type item. This is a bit staggering considering 11.5% of all transactions involve a lunch-type food item.
      • 3.3% of all customers buy a drink + lunch item
      • 1.2% of all customers buy chips + lunch item
      • 0.8% buy both
      • 0.6% bought candy with lunch and no chips
        • 0.4% bought lunch + candy
        • 0.2% bought lunch + candy+ drink
    • A discount of just drinks and lunch items would cause lower revenue on 3.3% of total sales
      • This could be a bad risk to take as it might not incentivize enough sales to make up for loss in revenue of 3.3% of customers
    • Offering % off the total (probably 5% or maybe $1) if the customer buys chips, drink, and lunch would be effective
      • Candy has a similar pattern as chip sales in this context so candy and chips could be included in a discount
      • A discount with just chips could also work because chips+lunch are only 1.2% of all transactions, but it would yield less total revenue

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