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Forecasting Demand for Gourmet Pizza
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Assignment Title: The “Demand Detective” Challenge
Scenario: A local pizzeria chain is ready to launch their gourmet pizza line. Before finalizing their pricing strategy and production volume, they need to accurately gauge potential demand. You are hired as a market research analyst to advise them.
Assignment Task:
1.
Demand Drivers: First, identify at least four key factors OTHER than price that could influence demand for the new gourmet pizzas. These could include income levels, competitor offerings, marketing, dietary trends, etc.
2.
Data Detective: For each of the factors you identified, do the following:
· Explain how this factor might affect demand for the gourmet pizzas. Would you expect a positive or negative impact?
· Research reliable data sources where you could find information related to this factor (market reports, economic indicators, local demographics, etc.). Be specific.
3.
Forecast Approaches: Choose TWO of the following forecasting techniques and discuss how they would apply to the pizzeria’s scenario:
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Time Series Analysis: Explain how the pizzeria could use past sales data (for similar products or overall sales trends) and time series analysis to project future demand.
·
Regression Analysis: Explain how a regression model could be used to quantify the relationship between demand and the factors you identified in part 1. Discuss the type of dependent and independent variables you might consider.
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Qualitative Methods: Explain how the pizzeria could use focus groups or in-depth interviews to gather insights about customer preferences and potential demand for gourmet offerings.
4.
Recommendations: Write a short analysis report (approximately 1,000 words) for the pizzeria. Include your findings on demand factors and a brief overview of forecasting methods best suited for their scenario. Include any important questions the pizzeria should consider in their data collection process.
Objectives:
· Understanding factors influencing demand beyond price
· Identifying reliable data sources for market research
· Evaluating different quantitative and qualitative forecasting methods
· Applying forecasting concepts to a real-world business problem
