Product Development at Smartfood is considering adding a new low-carbohydrate food product labeled K-Pack to their product line.Hence,the company needs to estimate the product’s profit potential and choose the best m...Product Development at Smartfood is considering adding a new low-carbohydrate food product labeled K-Pack to their product line.Hence,the company needs to estimate the product’s profit potential and choose the best marketing strategy.In order to investigate the different factors’impact on sales,we establish a multiple regression model.In our model,we consider selling price,advertisement payment,and selling location as independent variables and the sale is a dependent variable.Based on the empirical test,we found that the sales of the product increase as the selling price and the ads investment increase,and locations near bakery sections lead to higher sales.We also found that the final profits increase as the selling price and the ads investment increase.As a result of the analysis made with the model,we provide the company with a full-scale estimation of sales and suggestions on their marketing strategy:higher price,higher advertisement payment,and selling locations near the stores’bakery sections.Compared with the original prediction made by the company’s staff,the methods followed are more accurate and provide suggestions more specifically.展开更多
文摘Product Development at Smartfood is considering adding a new low-carbohydrate food product labeled K-Pack to their product line.Hence,the company needs to estimate the product’s profit potential and choose the best marketing strategy.In order to investigate the different factors’impact on sales,we establish a multiple regression model.In our model,we consider selling price,advertisement payment,and selling location as independent variables and the sale is a dependent variable.Based on the empirical test,we found that the sales of the product increase as the selling price and the ads investment increase,and locations near bakery sections lead to higher sales.We also found that the final profits increase as the selling price and the ads investment increase.As a result of the analysis made with the model,we provide the company with a full-scale estimation of sales and suggestions on their marketing strategy:higher price,higher advertisement payment,and selling locations near the stores’bakery sections.Compared with the original prediction made by the company’s staff,the methods followed are more accurate and provide suggestions more specifically.
