The purpose of the project is to give you a hands-on experience in data analysis with a computer and to communicate the result with a manager. The project involves analyzing the data given in the handout with a computer and writing an executive summary describing specific recommendations for the Avery Sporting Goods Company catalog operation.

The data analysis should investigate at least but not limited to the three issues raised in page 785 using the Avery data. The executive summary must be written from the perspective of a consulting group reporting to the management of the firm. Therefore, specific recommendations must be supported by evidences from the data in the form of tables, figures, plots, graphs, etc. Areas of recommendations are left for you to explore and they depend on how much information you can extract from the data. In general, the more you play with data, the more you can find something useful.

The following are some issues you might consider in generating recommendations for Avery. Because there are so many issues, limit your data analysis by focusing on a few crucial ones. Obviously, each of your recommendations must be supported by the results of your data analysis. No subjective reasoning (e.g., we think, or we feel ...) should be included.

- How should they position their image?

- What should be their pricing strategy compared with retails stores and other competing mail order firms?

- What segment of customers Avery should target and how can they reach them?

- How and who can they attract a potential segment?

- What product category should they emphasize?

- What aspects of service should they emphasize?

- What other distribution channels should Avery consider?

It must be typed, double-spaced, and no more than 3 pages. Management usually do not have time to read a lengthy dull report, so make yourself clear and concise. It must be accompanied by an appendix which contains tables, plots, estimated coefficients, etc. --- the result of your data analysis --- referred in the report. The appendix can be of any length. The grade is based on the depth of your analysis but not quantity, and every one in a group receives the same grade.

Because AVERY data contains 44 variables, you can do quite many runs on computer analysis. For example, if you are Cross-Tabling by picking two variables, there are 946 such tables. Do not try all for your health. Pick variables which are most important ones for strategy of AVERY based on your marketing judgment. In particular, you will have learned the following statistical techniques.

One-way Tabulation (FREQUENCIES, Table 13A.3)

Two-way Tabulation, Chi-square independence test (CROSSTABS, Table 13A.5)

Comparing means of independent two samples (T-TEST /Group, Table 15B.1)

Paired Difference Test (T-TEST /Pair, Table 15B.2)

Multiple Regression (REGRESSION, Table 16B.2)

Discriminant, Factor, and Cluster Analysis (Table 17A)

In the appendix, present an output from each technique at least once for variables which had an important marketing implication for AVERY. While you can use the result discussed in the class, you must add new analyses. Your recommendations must be based on these results.