DATA SET 1
Soft Drink Demand Estimation
Demand can be estimated with experimental data, time series data or cross section data. Sara Lee Corporation generates experimental data in test stores where the effect of an NFL-licensed Carolina Panthers logo on Champion sweatshirt sales can be carefully monitored. Demand forecasts usually rely on time series data. In contrast, cross-section data appear in Table 1. Soft drink consumption in cans per year is related to six pack price, income per capita, and mean temperature across the 48 contiguous sates in the United States Question

1. Estimate the demand for soft drinks using a multiple regression program available on your computer. 2. Interpret the coefficients and calculate the price elasticity of soft drink demand 3. Omit price from the regression equation and observe the bias introduced into the parameter estimate for income. 4. Now omit both price and temperature from the regression equation. Should a marketing plan for soft drinks be designed that relocates most canned drink machines into low income neighborhoods? Why or Why not? DATA SET 2

The data are the results of the following market research experiment by a large company. The company’s total market area was divided into 40 equally populated market areas, and the price to be charged for the product was set to be the same in each area. Then, the weekly amount of advertising expenditure ($) in each of these market areas was set as indicated in column B. The weekly sales (y units) in each market area was then recorded as shown in column C. 1. Use linear regression to estimate a linear equation describing how the value of sales (y) varies with the level of the fitted equation. 2. Assess the validity of the fitted equation.

3. If the product sells at a price of $100 and costs $70 per unit to produce, estimate a linear equation for the company’s weekly profit in terms of its advertising expenditure (x).

...around with your head. The Irish have an excellent sense of humor, and if you spend much time around them, you’ll discover it for yourself.
These are just some of the funny Irish words and phrases you can pick up if you keep your ear to the ground.
Have a Drink!
Beer is the Irish drink of choice, and they brew it very well. But don’t overindulge, or the bar patrons might think you’re “fluthered.” That’s when you can’t keep your butt on your bar stool.
Want a pint of great beer? Don’t ask for a glass. Tell the bartender you’re in the market for a pint of “plain.” That’s the local Guinness beer of which the Irish are so fond.
If you’d rather have a shot of vodka, try asking for a “naggin.” That’s how the Irishmen ask for their drink.
A night on the town, with a substantial measure of bar hopping, is known as being “out on a tear.”
If you’re really sloshed, you’re “locked” or “langered.” If you’re under the table, the locals will say you’re “ossified,” “paralytic,” or “plastered” (the latter word being one that’s common in American lingo.)
And if you’re drinking outside, that’s simply not done. It’s known as “knacker drinking,” and it’s not a compliment.
Sometimes it’s best to forego the booze, and have a “mineral” (a softdrink.) Your head will thank you tomorrow.
it’s not surprising the Irish have a huge variety of words from which to choose to colorfully describe alcoholic overindulgence!...

...Appy Fizz
• Banta (lemon-flavored softdrink)
• Bovonto (grape soda produced by Kali Mark)
• Campa Cola (popular Indian soda introduced in 1977)
• Cloud 9 (energy drink)
• Coca-cola
• Frooti (mango-flavored drink from Parle Agro)
• Gold Spot
• Guptas (8 flavoreds softdrinks introduced in 1947)
• h2o (powered carbonated soda)
• Limca (lemon-lime soda)
• LMN (lemon drink produced by Parle Agro)
• Mangola Slice
• Maaza (mango drink from Coca-Cola)
• Mohammad Cola
• Mountain Dew
• Pepsi
• Raja
• Rasna(powdered softdrink)
• Real (fruite juice from Dabur)
• Slice
• Solluna
• Sprite
• Tang (powdered softdrink)
• Thums Up (Cola drink)
• Tropicana Twister
• 777 (Panner,Cola,Orange,Lemon,Clear Lemon Lime,Mango)
• 7 up
• XXX (energy drink)
X.ray energy drink Mirinda Fanta Red bull grappo fizz Nimbooz orange pulp nimbu pulp
The Coca-Cola Company Country of origin- United States
. Coca-Cola is a carbonated softdrink. The Coca-Cola Company claims that the beverage is sold in more than 200 countries.[1] It is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a...

...1 – SoftDrink Case Study
Economics 3315: Managerial Economics
Case 1: SoftDrink Case Study
A study on softdrink consumption across the 48 contiguous states in the United States was conducted. The attached dataset describes the consumption across the US. There are 48 elements which are the states and 4 variables which are Cans/Capita/Yr, 6-Pck Price, Income/Capita, and Mean Temp. Out of these variables, we have dependent and independent variables. In this study, Cans/Capita/Yr is the dependent variable, while 6-Pack Price, Income/Capita and Mean Temp are the independent variables. During the analysis, the data was manipulated to see how the independent variables affect each other and the dependent variable. This case study will determine the estimated demand for softdrink consumption, interpret the associated coefficients, and calculate the price elasticity of softdrinkdemand at the mean.
1. Estimate the demand for softdrinks.
Multiple Regression Equation (Theoretical):
softdrinkdemand = 514.27 - 242.97 *6-pack price +1.36 *income + 2.93 *mean temp+ e
Multiple Regression Equation (Estimated):
softdrinkdemand = 514.27 - 242.97...

...REPORT ON
OLIGOPOLY MARKET OF
SOFT-DRINK INDUSTRY
Submitted by:
Priyanka
(Student)
Jaipuria Institute Of Management, Lucknow
THE EXISTING DUOPOLY
OLIGOPOLY
Oligopoly is said to prevail when there are few firms or sellers in the market producing or selling a product. Oligopoly is of two types- pure Oligopoly where the product is same and differentiated oligopoly where the product is different.
When we talk about softdrink market in India, the two major names which come in our mind are PepsiCo India and Coca Cola India Ltd.
Which comprise of almost the whole chunk of softdrink market and that is what makes that market a differentiated oligopoly and almost a perfect duopoly. They have been present since almost three decades now and have not faced any kind of competition since their inception in Indian market
CHARACTERSTICS
Interdependence- Less number of firms results in greater interdependence. Any change in price or output by a firm has a direct effect on the rival, which then retaliates and changes its own price or output. So, the oligopolist not only considers the market demand...

...Coca-Cola’s New Vending Machine (A) Case Questions
1. Is selling Coke through interactive vending machines a good or bad idea? Explain your answer.
It is a good idea to sell Coke through interactive vending machines. Over the last three years, the soft-drinking giants have watched their earnings erode as they waged a price war in supermarkets. Vending machines have remained largely untouched by the discounting. Sales of softdrinks from vending machines have risen steadily over the last few years, though most sales still take place in supermarkets. Last year, about 11.9 percent of soft-drink sales worldwide were from vending machines. Vending machines require low cost for companies. Company can just place a vending machine at any corner in malls or schools without distributed by supermarkets. Although the machine can automatically raise prices for its drinks in hot weather, not too many consumers would notice that. And there is nothing wrong for the company try to maximize its profit. There is price discrimination existing everywhere. As long as Coke is not increasing the price for coca in vending machines, it’s a good idea to sell Coke through interactive vending machines.
Pro’s for the Coca Cola company
• Technology availability: Electric components are becoming more and more versatile and cheaper. In order to adjust the price with weather change all that is required is...

...forecast and another variable or a series of variables. (Demand is based on the policy, e.g. cement, and build material.
Causal Model:
Demand for next period
= f (number of permits, number of loan application....)
There is no logical link between the demand in the future and what has happened in the past. There are other factors which can be logically linked to the demand.
Example 1: There is a strong cause and effect relationship between future demand for doors and windows and the number of construction permits issued at present.
Example 2: The demand for new house or automobile is very much affected by the interest rates changed by banks.
Regression analysis is one such causal method. It is not limited to locating the straight line of best fit.
Types:-
1. Simple (or Bivariate) Regression Analysis:
Deals with a Single independent variable that determines the value of a dependent variable.
Ft+1 = f (x) t Where Ft+1: the forecast for the next period.
This indicates the future demand is a function of the value of the economic indicator at the
present time.
Demand Function: D=a+bP, where b is negative.
If we assume there is a linear relation between D and P, there may also be some random variation in this relation.
Sum of Squared Errors (SSE): This is a measure of the predictive accuracy. Smaller the value of SSE, the...

...States, people consume more carbonated drinks than tap water. Research has shown that the average American drinks about 53 gallons of softdrinks
per year. However, softdrink consumption has declined over the past few years (Kerin & Peterson, 2004).
The softdrink industry has three major participants in the production and distribution; concentrate producers, bottlers, and retail outlets. Concentrate producers are responsible for consumer advertising and promotion programs, product development and planning and market research. The bottler’s responsibility is to set up local and retail trade promotions. Among this is selling and servicing retail outlets, placements and maintenance of advertisements, and the restocking of retailer’s shelves and vending machines.
Competition in the softdrink industry is mostly relevant among the top three companies; Coca-cola, Pepsi-Cola, and Dr. Pepper/Seven Up. Each of these companies offers a product similar to Squirt, but each has their own variation. Coca-Cola’s Fresca is also a grapefruit flavored carbonated rink, but it has sugar and is caffeine free. Coco-cola also offers Mello Yellow and Surge. Pepsi-Cola has the largest carbonated citrus drink called Mountain Dew (Kerin & Peterson, 2004).
The Organization
Squirt Brand carbonated drink is a caffeine-free,...

...
Logistic regression
In statistics, logistic regression, or logit regression, is a type of probabilistic statistical classification model.[1] It is also used to predict a binary response from a binary predictor, used for predicting the outcome of acategorical dependent variable (i.e., a class label) based on one or more predictor variables (features). That is, it is used in estimating the parameters of a qualitative response model. The probabilities describing the possible outcomes of a single trial are modeled, as a function of the explanatory (predictor) variables, using a logistic function. Frequently (and subsequently in this article) "logistic regression" is used to refer specifically to the problem in which the dependent variable is binary—that is, the number of available categories is two—while problems with more than two categories are referred to as multinomial logistic regression or, if the multiple categories are ordered, as ordered logistic regression.
Logistic regression measures the relationship between a categorical dependent variable and one or more independent variables, which are usually (but not necessarily) continuous, by using probability scores as the predicted values of the dependent variable.[2] As such it treats the same set of problems as doesprobit regression using similar techniques.
Fields and examples of applications[edit]...