Analysis of Razor Blade Market

STATISTICS FOR DECISION MAKING
ECON940
[DATE]
STUDENT NAME
STUDENT ID

Executive Summary
The key objective of the analysis is to provide valuable analysis to aid the new product
development and key aspects such as pricing considering the same would be launched in
Asia. The sample data has been analysed using descriptive and inferential statistics technique
based on the underlying requirement. Using descriptive statistics, sample data summary has
been provided with regards to key variables. Using inferential statistics, testing of the various
claims has been performed. It has come to light that average price of razors is not dependent
on the underlying gender being targeted by the product. Additionally, the number of
cartridges provided in the blade also does not bring about any significant difference in the
average price. The country of origin effect has been found to be significant particularly if the
product originates from France. The key takeaways for the company to ensure that the
product is not focused on any particular gender, does not have very high cartridges in blade
and is priced keeping the prices offered by Asian manufactured along with potential premium
for country of origin.
Business Problem
Our company is involved in the manufacturing of sanitary products. It aims to enter the Asian
market and is developing a new product line which is relates to razor blade. In order to
understand the various nuances about this product and related pricing decision, the objective
is to analyse the razor blades variant available in the market. This would enable the company
to understand the ongoing trends and consumer preferences. The given object aims to resolve
the business problem through analysis of sample data available in this regards.
Statistical Problem
The key statistical problem is to carry out an analysis of the sample data using appropriate
statistical techniques. In this regards, descriptive statistics technique such as graphical
illustration and summary statistics have been used to summarise the sample data. However, in
cases where the objective is to test a claim for the razor blade as a product range, then
inferential statistical technique namely hypothesis testing has been deployed. The objective of
data analysis is to represent the key characteristics of razor blade market in quantitative
terms.
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Analysis
The discussion of the findings of statistical analysis has been carried out below.
(1) Requisite graphical illustration along with descriptive summary of gender based prices of
the sample data is presented as follows.
Box & whisker plot
Descriptive statistics
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The sample based descriptive statistics highlight that average price per product used by
female is $6.90 which exceeds the median price of $6.50. The distribution shape with regards
to the prices of female products is asymmetric. This is apparent on the basis of box plot
where the quartile distribution is not even. Also, the descriptive statistics highlight the
presence of positive skew. In relation to dispersion in sample data regarding price of female
products, it is apparent that is quite high. The comparison of the measures of dispersion with
mean indicates the high amount of dispersion in the price of female products.
With regards to prices of male products, the average price is lower than the average for
females at $ 5.60. The median value is greater than the corresponding mean by $ 0.40. The
box plot highlights the asymmetric shape of this variable distribution which is also confirmed
from the non-convergence of mean and median values along with presence of skew. The
dispersion with regards to prices of male products is comparatively lower than female
products as evident from the dispersion measures
(2) Graphical display and descriptive statistics of the prices based on the total number of
cartridge blades is given below.
Column chart
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