Making Decisions Based on Demand and Forecasting

Making Decisions Based on Demand and Forecasting

Introduction

Market demand evaluation is used to comprehend how much customer demand there is for an innovative service or product. The Domino pizza has to establish his new business in the US city Florida. While different competitors also prevailing in the market, for this market demand evaluation is the best strategic process to keep know about the market with the same product. This evaluation can help the market to run their business successfully and sustain their profit growth and revenue. Domino's pizza was enunciated in 1963 and has been increasing his franchisee from the starting year of 1967. After this, they increased their chain business in different parts of the country. The next mission has to establish his setup in Florida City and Jacksonville state (Sheth & Parvatlyar, 1995).

Discussion

1. The independent variable for this Domino's pizza report will be the target population. Age of population the average income per household, price of pizza and price of soda are the key factors which have to analyze. A means determinant of demand is the Florida and Jacksonville population and asks them demographic questions related to his personal belongings, would provide real factors for a positive approach. The main concern to open a new pizza business in the new state. Level of proceeds is comparative to demand and classically the elevated the household earnings of the family, the higher chances of consumption of a new product. Revenue rank also can manipulate the trivial income for the new company. Those areas that have greater income, they have enormous chances to avail all the opportunities related to pizza such as, pizza delivery, and consumption of pizza at the time of friend's gatherings. Lastly so far prominently is price. Given the cities below standard median house income contrast to the state, cost was chosen as an erratic. In this case, the dependent variable is the amount of pizza that sold in the area. By finding the estimates of a business in a new place, we would take pizza sold as a dependent variable and the demographic data such as, household income, price and population as independent variables. The regression summary will provide the new techniques.

2. Taking amount of pizza as a dependent variable and household income, population and price of soda as an independent variable. Taking values from the last four years would provide forecast outcomes for the Domino's pizza store in Florida and Jacksonville state. The Regression method caters a forecast result from the next four months and the chances of increase in productivity from the different competitors that prevailed in the market.

Years

price of pizza

population size

average income

price of soda

2009

$6

87805

$25,000

$1.50

2010

$6.50

87956

$26,500

$1.50

2011

$7.50

98765

$27,875

$2

2012

$8

99655

$28,000

$2.50

Regression Analysis

SUMMARY OUTPUT

Regression Statistics

Multiple R

1

R Square

1

Adjusted R Square

65535

Standard Error

0

Observations

4

ANOVA

 

df

SS

MS

F

Significance F

Regression

3

2.5

0.833333

0.6789

0.5766

Residual

0

0

65535

Total

3

2.5

 

 

 

PROBABILITY OUTPUT

Percentile

price of pizza

12.5

6

37.5

6.5

62.5

7.5

87.5

8

Interpretation

The ANOVA table defines the gathers statistical patterns that evaluate the discrimination between the two factors. In this case the dependent variable such as price of pizza and independent variable such ...