Essay topics: You should spend about 20 minutes on this Task.
Chart 1 below shows the normal price of a tablet computer in different stores (in US dollars), and the
% discount offered by these stores when the products are sold on promotion. Chart 2 shows the %
increase in volume sales when the discount promotions are happening, and Chart 3 shows funds (in
000 US dollars) spent on TV advertising during these promotions.
Write a report summarising the information. Select and describe the main features, and make
comparisons where relevant.
Write at least 150 words.
The charts show average prices, promotional discounts, sales uplifts and advertising budgets
for 7 stores selling tablet computers.
4 of these stores have a normal price of around $300 per item (Slaker, Jones, Scots and
Fraser.) 2 stores (Lewis and Nova) have a much higher price at $460 and $565 respectively. The
lowest price ($180) is seen in Smith. We see a similar grouping in the promotional discounts offered,
with the 4 mid-priced stores offering 10% off, the two higher-priced stores giving 20% (Lewis) and
25% (Nova), and Smith offering only 5% discount.
Lewis and Nova also see the highest rate of uplift in sales volumes on promotion (at 21% and
23% respectively), while Slaker, Jones, Scots and Fraser are again similarly grouped with around a
12% increase each. Smith has the lowest sales increase with below 5%.
Turning to TV advertising, Slaker, Jones, Scots and Fraser have roughly similar funds of
between $63,000 and $70,000. Lewis and Nova have much lower spends at $18,000 and $21,000,
while Smith does not spend money at all.
In summary, the 4 mid-price stores spend the most on advertising and achieve similar uplifts
with their 10% discounts. Lewis and Nova spend about one third of these levels, but achieve roughly
double the uplift by offering approximately double the level of discount. Smith, with its lower normal
price, is barely active on promotions.
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