Most businesses are nowadays adopting online marketing in promoting their products. Since the introduction of the internet, online marketing influences the profitability and consumer-awareness of the organizations’ goods and services. While some of the online marketing strategies are effective and enable attraction of more customers and growth in sales, another strategy may fail to reach the projected market and outcomes. If well implemented, modern results can result to high yields in a business. The business report employs an analytical approach to the various financial information of Jacinta and Pete orchards business. The analysis includes the material financial aspects in decision making, that is, the revenue and profit realised therein. The report aims at evaluating the influence of the online ordering system to both the popularity and productivity of businesses. The report analysis and reports on the operations of Pink Lady Orchards. In addition, the report will recommend practices that the business owners can employ to boost their revenue in terms of popularity and profitability.
Results Analysis
The business earns income from the sale of various types of apple-related products. These products include dry cider, classic apple cider, sweet cider, organic apple juice sparking apple juice, mixed cider juice and apple chips. Customers avail these products directly from the designated business sale points and through online sale. Table 1 shows the total revenue received, by month, from the sale of the seven products.
Table 1: Revenue Received for Each Month
Month
Sales $
January
8083.5
February
27416.8
March
9234
April
4318
The sales for the month of February ($27416.8) were considerably higher than for the other three months. The business received the lowest sales on the month of April. Graph 1 shows represents the total revenue received in each month.
Graph 1: Revenue Received for Each Month
As seen from the graphical representation of sales in Graph 1 that the month of February recorded the highest sales, while April had the lowest.
Further, the business accrued both fixed and variable costs. The costs affected the gross profits received during the four months. Table two shows the various profits received in each month.
Table 2: Profits for the Four Months
Month
Profits $
January
3412.5
February
11377.8
March
4193
April
1996
The data set in Table 2 shows the various profits that Pink Lady Orchards received for the four given months. The month of February recorded the highest profit while April recorded the lowest. Graph 2 shows the corresponding graphical representation for the data in Table 2.
Graph 2: Profits for the Four Months
The business also begun allowing discounts to its customers, which affected the number of products purchased. Table 3 shows the various total discounts offered to customers and the corresponding number of units sold out.
Month
Discounts Allowed $
No. of Units Sold
January
0
193
February
1129.2
652
March
27
209
April
0
103
Discussion of Results
The data provided by the Pink Lady Orchards shows some very important trends in terms of sales and the gross income received over the four years. First, it is worth noting that online sales impacted significantly on the revenues received as well as the corresponding gross income for the business. The business first employed online sales by the end of January and the sales at that point were worth $8,083.5. After employing the various forms of online sales, these revenues rapidly hiked to $27,416.8. The 39.2% sales increase is directly linked with the introduction of online sales as a platform to reach out to more customers. Therefore, online sales proved significantly efficient and a more economical way to yield income. Also, due to the withdrawal from the online sale in the consequent months, the business underwent a tremendous reduction in sales revenues.
The average gross income was also affected by the application of online sales. The company, before adapting the new sales approach, made a profit totalling to $3412.5. In February, the company adapted the online sale and this bloomed the profits to $11,377.8, which was a 33.4% increase. The increase can be associated with the rise in sales, which resulted from the introduction of the online sale.
Generally, the discounts attracted customers, which impacted on the number of products sold, hence the increase in profits. Prior the introduction of the discounts by the business, the sales were comparatively low. However, after offering discounts worth at $1129.2, the number of units sold increased from 193 in January to 652 in February. Also, upon the forfeiture of discounts allowed in the following months, the number of units sold declined significantly. As such, discounts were a vital customer attraction tool, whose effectiveness resulted to the rise in sales especially on the month of February.
Conclusion
The evolving business practices ae worth revisiting for any business. The online sale platform is a vital modern business practice that apparently, has boosted the sales of Pink Lady Orchards. The business employed online sale as a selling platform, which boosted its sales for the affected months. Additionally, the decline in investing in online sales adversely affected the business. Therefore, adapting the online sale was an intelligent business decision from the very onset of things.
Recommendations
While investing in the online sale boosted the income of the business significantly, there is a need to do some adjustments insofar as discounts are concerned. The discounts offered to consumers have improved sales considerably. Therefore, the business owners should see to it that more money set aside for discounts allowed.
Additionally, there is a need for the business to adapt flexible online sales platforms to boost its earnings. Such flexible online sale platforms include but are not limited to social media marketing and own mobile phone apps. Social media marketing incorporates various social media platforms including examples such as Facebook and Instagram. The two are flexible online sale platforms that have a wide range of viewers and potential customers. Also, such platforms will enable customers to see samples of the various apples products sold by the business.
Another possible solution is having an application where the business can interact with its customers. Having an application entails hiring a software developer who will modify an effective application that allows the business to display its products and transact them online to a wider range of customers. An application has several cost benefits to the business as it minimizes amounts spent on hiring online sale sites, Also, the business can mitigate costs associated with reaching out to a wider range of customers as the application will link the business to the customers.
