DISCOUNT PROGRAM MODEL
Project Details
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CocoaCraft Confections prioritizes nurturing its recurring clientele, which constitutes 87% of its annual sales, alongside 13% from new customers. Recognizing the significance of maintaining and enhancing these relationships, the company has undertaken strategic initiatives to streamline its sales processes.
Previously, sales representatives wielded discretion over pricing strategies, resulting in pricing disparities and substantial margin erosion. To address this issue, the company introduced the "Discount Program" order form, designed to standardize pricing for annual orders among designated customers within a structured sales framework.
This sales program strategically incentivizes the promotion of specialty products over commodity offerings, aiming to bolster the company's overall profit margin. With a proactive implementation strategy, a projected realization rate of 70% is anticipated, culminating in a notable $1.3 million margin enhancement, representing a significant differential of +22.8%. These projections are based on the assumption of consistent product selections across all customers.
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The construction of this model showcases advanced utilization of Excel functionalities excluding VBA, to achieve sophisticated data manipulation:
-Leveraging the power of Pivot Tables for dynamic data analysis and visualization.
-Implementing robust Data Validation techniques to ensure data accuracy and integrity.
-Utilizing Slicers for intuitive and seamless data filtering and exploration, enhancing user experience and analytical capabilities.