Pelican Stores Case Study

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Using the analysis above, the regular customers purchased the least number of items and the bulk of sales were in the 1-4 item range.

The customers that purchased items based on the promotion Pelican advertised, spent more and they made purchases for items in larger ranges.

The program was an overall success as the new promotional customers made up 76% of sales.

Pelican Stores- Case Study 2

Pelican Stores, a division of National Clothing, is a chain of women’s apparel stores operating throughout the country. The chain recently ran a promotion in which discount coupons were sent to customers of other National Clothing stores. Data collected for a sample of 100 in-store credit card transactions at Pelican Stores during one day while the promotion was running are contained in the file named Pelican Stores. Table 3.12 shows a portion of the data set. The proprietary card method of payment refers to charges made using a National Clothing charge card. Customers who made a purchase using a discount coupon are referred to as promotional customers and customers who made a purchase but did not use a discount coupon are referred to as regular customers. Because the promotional coupons were not sent to regular Pelican Stores customers, management considers

The sales made to people presenting the promotional coupons as sales it would not otherwise make. Of course, Pelican also hopes that the promotional customers will continue to shop at its stores. Most of the variables shown in Table 3.12 are self-explanatory, but two of the variables require some clarification.

Items the total number of items purchased

Net Sales the total amount ($) charged to the credit card

Pelican’s management would like to use this sample data to learn about its customer base and to evaluate the promotion involving discount coupons.

Males conducted 7% of the 100 sales and accounted for $395.40 in total sales or $56.49 on average per sale. Men also bought an average of two items per store. The majority of the men were middle aged and had no correlation between being single or married, method of payment or promotional or regular customer.

Females conducted 93% of the sales at the store and accounted for $7,364.65 in total sales or $79.19 per sale average and purchased an average of 3.3 items per transaction. The average age of a female customer was 43 years old, with a range of 20 years old to 78 years old. Female customers 30 years old or younger spent an average of $97 per transaction where as female customer over 55 years old spent an average of $60 per transaction. 66 of the female transactions were due to the promotion, which generated $5,623.40 in new sales for the business with an average of $85.20 per transaction. 54 of the 66 transactions were placed on the proprietary card with about 80% of the sales from the promotion. Regular, non-promotion customers did not have a trend for the method of payment.

Pelican generated over $5,600 in new sales solely to their main customer, females during their promotion, making the promotion a clear success. The added plus to the business is the fact the majority of these sales were placed on the company credit card which, assuming the front line staff received guidance to obtain as many purchases on the company cards as possible, shows the staff is engaged and following directions for the company. The promotion appears to be successful, especially if a decent portion of the new customers generated from the promotion are able to be retained as ongoing customers for the business. Anytime a business can generate new customers, assuming the sales outweigh the costs, is a positive for the business. Generating new sales is a key to growing the business.

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