Part 1: Identify products to drop from the assortment

Utilizing the dataset provided identify the 3 products that should be removed from the assortment. Sales trends over time, sales volume, profitability and availability of product substitutes should be considered in your analysis.

Questions

• Based on the products selected do you believe that your customers will switch to alternative products or will sales to those customers be lost to competitors?

Part 2: Estimate impact of product assortment reductions to sales and profitability

Develop a forecast estimating the amount of sales and profit that will be lost per month based on the reduced assortment. Sales trends over time, sales volume, profitability and availability of product substitutes in the coffee house assortment should be considered in your analysis.

• Will some markets be impacted by the change in the assortment more than others?
• What will be the overall impact of the reductions of products be on the margin ratios (the profit as a % of sales) of the company

Part 3: Integrate your recommendation

Based on the amount of sales and profit loss identified in part 2, how much savings must the operational efficiencies provided by the reduced assortment delivery to justify reducing the types of products offered?

• Should the company pilot the reduced assortment in one market first to evaluate the overall effect