Investigation for Smartfood’s Market Ability Based on Regression Analysis

DOI

10.2991/assehr.k.211209.283How to use a DOI?

Keywords

Multiple Regression; Analysis Model; Marketing strategy; Advertisement payment

Abstract

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.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Runshi Li
AU  - Tzuying Shen
AU  - Tzuyun Ting
PY  - 2021
DA  - 2021/12/15
TI  - Investigation for Smartfood’s Market Ability Based on Regression Analysis
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1755
EP  - 1761
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.283
DO  - 10.2991/assehr.k.211209.283
ID  - Li2021
ER  -