Plow and Hearth

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Plow and Hearth

• Peter Laudicina
• Tarik Moafi

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Brochure Mailings

• Plow and Hearth mails a specific amount of
  brochures to customers based on a specific
  budget.
• Mailing selections are selected by the marketing
  department.
• They normally get a response of 1.1 to 1.5
  percent of all mailings.

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How They Estimate Total Sales

• The average customer spends around 110.
• They estimate the number of buyers by multiplying
  a number between 1.1 and 1.5by the total amount
  of brochures mailed.
• That number is then multiplied by 110.
• This number is the TOTAL SALES FORCAST.

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ModelMax Software

• Takes the population of the customers who were
  sent a brochure and picks a sample of 5 to 10
  from it.
• It calculates many variables dependent and
  independent.
• Calculates the many variables that goes into
  linear regression.

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What We Hope To Improve
We want to eliminate the sending of brochures to
non-buyers. We also try and project new buyers
to increase our percent of buyers relative to the
number of brochures we send out. We will reduce
costs by not sending brochures to non-buyers and
we will increase profits by sending brochures to
likely buyers.
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Our Schedule

• Sunday, February 17 Meet with Jacqui and Chris
  to prepare questions for a plant tour
• Monday February 18 Try to schedule a plant tour
  and interview
• Wednesday February 20 Discuss the process in
  which they send out brochures in more detail
• Sunday February 24 Bring together research and
  try to master the understanding of the process

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Cont.

• Monday February 25 Set up another interview and
  see if our process is consistent with theirs.
• Wednesday February 27 Test process
• By March 1 Gather all data to begin final write
  up.
• Spring Break
• Monday March 11 Review work done over break
• Monday March 18 Preliminary Write up done