Data analytics simulation

Based on Harvard business school data simulation

1. Data analytics simulation: strategic decision making
Introduction:
I have given my best effort to explore and find out the past data about blue’s performance. I looked at
the previous set and tried to explore everything and relate with the case. I also tried to make new
business decision for blues. I looked after the previous market share, market growth and profitability of
previous year of 2015 to 2018. I have spent time well because I have tried so many times with putting
different data and checking the actual result. I gained new experience from analyzing data, it was fun
playing with data. The product innovation and process innovation can create a vital role in the market by
increasing the demand, market share, and profitability. The unit of production, precising, target
customer, advertising all of those affected the market each year.


On the above the decision history and profitably is shown in Table 1 and 2. For the next year 2019 the
profitability increased tremendously ($90,499,999) and the revenue also increased, and it became
$36,000,000. But when I filter the data for the second year the profitability decreased ($57,675,888) and
again same in the next year, but in the year 2022 I applied some new strategies and then the profit
started increasing, I changed the market segment and invested more in the digital ads then profit
started increasing from the year 2022, and the cumulative profit came $318M at the end of the analysis.
Mainly I have focused on the production per unit $60m from 2019 and decreased the price $6.00 from
2019 (shown in table 1) and it increased the market share, growth as well as the profitability. I also filter
the market segment and product feature and positioning which is ‘’pods’’ and odor ‘’elimination’’. But I
kept the media and channel expand same in year 2019, so that it does not exceed the limit.
To improve the condition of Blue in the marketplace I had to bring some new strategy so that the
market share and profit increase. First, the new product innovation (pods and odor elimination). For the
new product the customer satisfaction became high. On the other hand, the price also played a vital
Table: 1 Table: 2

2. role, as Blue innovate new product as well as reduces their price, so the demand became high. Some of
the customer comments is shown below about Blues after their product innovation (Table:3,4).



I decreased the price. It was $7.00 in 2018 and the new pricing strategies was $6.00, shown in table 1.
The market share became high when the price was being decreased. The previous market share in 2018
was 17.0% and after decreasing the price the market share in 2022 became 17.8%. shown below:



With increasing the unit of production, we adjusted the fixed cost and variable cost and then decreased
the price. Some of the customer is also satisfied with the new Blues price and product. Some of the
customer comments on the price is given below.


The forecasting data was based on previous years Demand, Sales, Revenue, Total Costs and Operating
Profit. From the year 2018 the forecasting demand was 32,158,422 and the overall sales was Average:
Table: 3
Table: 4
Market share in 2022 Market share in 2018

3. 29,423,676, so Blues could fulfill the demands because there was some gap in the market. So, we
increased the production per unit so that we could meet the demand with the sales and increase our
profit, and in the next year with increasing the production the profit became higher than the previous
year 2018. For producing too much the market got affected in the very next year, the profit margin
started decreasing but on the other hand if we used to produce less then we could not able to fulfill the
demand. The forecasting tools is shown below.

In this analysis formulation played an important role because with the formulation strategy we could
improve the condition of the Blues demand and increased cumulative profit. With the strategy
formulation we developed the product with pods and odor eliminator which is most modern option and
most convenient premium. We got profit in the next year 2019 for the new formulation strategy, but
from the next year the market share and profitability started decreasing because of the high variable
cost. We can see that the cost of Pods is 15% more than the other powder and liquid. We can see that
the cost of Pods is 15% more than the other powder and liquid. Because of increasing the variable cost
the production cost became high and profit level became low.
As shown before that we came up with product development, so we had to select new feature and
positioning for Blues. We selected pods and odor eliminator which is more modern and can attract new
generation of people. From the case we can see that “Blues customer sometimes even felt that liquid
was too modern for their tastes” so we came up with order eliminator. Because of the new feature
some of the customer became happy with the new scent of Blues. Some customer perception about the
new product is shown


From the case we can see that Blues used to focus on all average channels and for that the growth and
prifitability were increasing slowly. But we made some changes in our strategy decision making, we
Table: 5

4. focused on the digital ads and print media more because with the digital ads and print media we can
attract a lot of customer because most of the people in this generation don’t watch more Tv or listen to
radio. As our customers perception about our product was tradutional so we focused on the new
product development as well as selected the digital Ads more. For ex, we can see turbo focused on the
digital media more and their market share and profitability is so high. The table is shown below:



The channel spending is one of the improtant tools here. We invested more in the digital Ads according
to our new strateg, which would cost more. But on the other hand we invested less I TV and Radio as
most of the people in this era don’t watch more tv or listen to radio. So, we could balance the fixed cost
by giving less promotion in those area. Total investment is shown in table 6.
Before describing the public reaction I want ti sgare some customers comments on blue, given below,

We can see some of our customers comments on Blues which is totally negetative, as we know that
word of mouth is an improtant free advertishment. We can see that customers were unhappy with the
product. They had issues with the packet, scent, qualityand the container. So, with the product
inniovation we developed the Blues quality. Blues came out with new Pods and odor eliminator and
later customer became happy with the product ( some good customers review is shown above).
We did the descriptive analytics on Blues performance in the market. Descriptive analysis means
priminary stages of data processing that helps to take decision in future. So we had all the background
historical data about blues (market share, market growth, profitability, demand and so on). So, with the
help of those previous data set we make some strategic decision for the future.
Before starting the analysis on Blues we figured out what is pro problem, how the problem is occuring is
the market and why this this is happening. So we came out with the result that the problem was inside
the management system as well as in the market. From the case we can see that, they lacked in IT,
database management decision making system and data based executive. Some problem was with the
product and customer satisfaction was not good. So with the new expert CEO we established
Table: 6

5. quantititavve data based decision making system and used data and analytics for decision making. We
solved the problem with the market by introducing new prodect model.
This types of dectriptive analytics is so improtant for banlacing with the new Tech. Using the previous
historical data we can take decision for the busines, we can easily predict the condiotion of the market
in future. Data and analytics for the decision making is improtant for any company. With the analytic
direction and expert data driven executive we can develop the condition of the company .
We found some of the disadvantages of databased management system. If we follow the case we can
see that they lack in epmloyment training and data deiven executive. So proper training might be a
problem in this management system. The cost of data conversion and training of technical will be
increase. One of the main downside I found is that hiring perfect technical staff for the right position.
Otherthan those downside the data driven management system is so improtant for the development of
the company.
Conclusion:
So, the simulation was based on a descriptive analytics where we made decision for the next four
months. For the very first month we gained a huge market growth and profitability because of
Quantitative Data based decision making with the help of expert data deiven executive. We came up
with the new product development that satisfied some customers needs and our sales became high
from the year 2019. We also made changes in product feature and postioning with the help of
formulation. Focusing on the digital Ads played a vital role. But from the next year 2020 the growth and
profit margin started decreasing because of some management decision failure, but later on it increases
gradually.