National Foods, a leading manufacturer of instant mixes and pickles, have been selling its products under the

brand name chatkhara pickel for over the last two decades. National Foods is engaged in the manufacturing and marketing of high quality Pakistani processed foods such as pickles, spice pastes, instant mixes, etc. Of late, the management of national Foods started facing three problems. 1. What are the average sales of pickles only? 2. To identify the factors that can increase the sales of pickles? 3. We want to estimate d probability of preference of product for future? To find out a solution, national foods sought the help of a marketing department which consulted the marketing agency. The Marketing agency started its research task to find out the average sales of pickles and what factors influencing the sales of pickle. To solve the problem, the company applied Multiple Regression Analysis technique to find out the factors. After processing the surveyed data, Care agency was able to provide solution to the problems of national Foods. 1. What are the average sales of pickles only? Sol: As the company is making a lot of products so to solve the problem related to pickles they first need to find out the average sales they generate from pickles.
Descriptive Statistics N sales Valid N (listwise) 15 15 Minimum 8000.00 Maximum 8700.00 Mean 8346.6667 Std. Deviation 272.20440

Statistics sales N Valid Missing Mean Std. Error of Mean Median Mode Std. Deviation Variance Range Minimum Maximum 15.00 .00 8346.67 70.28 8300.00 8300.00a 272.20 74095.24 700.00 8000.00 8700.00

a. Multiple modes exist. The smallest value is shown

sales Cumulative Frequency Valid 8000 8100 8300 8500 8700 Total 3 2 4 2 4 15 Percent 20.0 13.3 26.7 13.3 26.7 100.0 Valid Percent 20.0 13.3 26.7 13.3 26.7 100.0 Percent 20.0 33.3 60.0 73.3 100.0

2. To identify the factors that can increase the sales of pickles?

According to the survey that care advertisement agency did through a street show they find out that there are two factors which affect the increase the sales i.e. the quality and price, if they keep a reasonable price and high quality their sales will increase.

Variables Entered/Removedb Variables Model 1 Entered qualitya Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: sales

Model Summary Adjusted R Model 1 R .352a R Square .124 Square .056 Std. Error of the Estimate 264.41356

a. Predictors: (Constant), quality

ANOVAb Model 1 Regression Residual Total Sum of Squares 128444.444 908888.889 1037333.333 df 1 13 14 Mean Square 128444.444 69914.530 F 1.837 Sig. .198a

a. Predictors: (Constant), quality b. Dependent Variable: sales

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) quality a. Dependent Variable: sales B 8233.333 188.889 Std. Error 107.946 139.358 .352 Coefficients Beta t 76.272 1.355 Sig. .000 .198

The first variable is quality according to the table it shows that Quality is differentiated by assigning codes 0 represents low quality and 1 represents high quality. y = 0 + 1 D + error

= 8233.333 + 188.889 D
Regardless of quality the average sales of pickle will b 8233.3 but if we increase the quality from low to high the average sales will increase by 188.889. r square is 0.12 which means only 0.88 is the contribution of quality in sales and 0.12 is contributed by external factors. If we assign codes e.g.: Y= 0 + 1 (0) + error

= 8233.333 + 188.889 (0) = 8233.333

This shows regardless of quality the average sales will be 8233.333 Y= 0 + 1 (0) + error

= 8233.333 + 188.889 (1) = 8422.222

But if we improve the quality from low to high average sales will b increase by 8422.222 Another variable that affects the sales is the price of pickle. The data showed is of full one year which shows the fluctuations in prices.

Variables Entered/Removedb Variables Model 1 Entered pricea Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: sales

Model Summary Adjusted R Model 1 R .787a R Square .620 Square .590 Std. Error of the Estimate 174.23040

a. Predictors: (Constant), price

ANOVAb Model 1 Regression Residual Total Sum of Squares 642702.331 394631.002 1037333.333 df 1 13 14 Mean Square 642702.331 30356.231 F 21.172 Sig. .000a

a. Predictors: (Constant), price b. Dependent Variable: sales

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) price a. Dependent Variable: sales B 6646.632 39.413 Std. Error 372.197 8.566 .787 Coefficients Beta t 17.858 4.601 Sig. .000 .000

The second variable is price according to the table it shows that: Y= 0 + 1 x + error

= 6646.632 + 39.413 x
it shows that regardless of price the average sales of pickles would be 6646.632 but if we increase the price from one rupee the average sales will increase by 39.413. r square is 0.6 which means that only 0.4 is the contribution is because of price rest 0.6 is because of uncontrollable factors. Y= 0 + 1 x + error

= 6646.632 + 39.413 (1) = 6686.045

This shows that if we increase the price by one rupee the average sales will become 6686.045. Now we will see that how price and quality together increase the sales of pickles.

Variables Entered/Removedb Variables Model 1 Entered quality, pricea Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: sales

Model Summary Adjusted R Model 1 R .892a R Square .795 Square .761 Std. Error of the Estimate 133.18903

a. Predictors: (Constant), quality, price

ANOVAb Model 1 Regression Residual Total Sum of Squares 824461.511 212871.823 1037333.333 df 2 12 14 Mean Square 412230.755 17739.319 F 23.238 Sig. .000a

a. Predictors: (Constant), quality, price

ANOVAb Model 1 Regression Residual Total Sum of Squares 824461.511 212871.823 1037333.333 df 2 12 14 Mean Square 412230.755 17739.319 F 23.238 Sig. .000a

b. Dependent Variable: sales

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) price quality a. Dependent Variable: sales B 6436.128 41.157 225.473 Std. Error 292.024 6.571 70.439 .822 .420 Coefficients Beta t 22.040 6.264 3.201 Sig. .000 .000 .008

Y= 0 + 1 x + 2 D + error = 6436.1 + 41.1 x + 225.4 D Regardless of price and quality the average sales will be 6436.1 If we increase the price by one rupee average sales will be increased by 41.1 and if we move from low quality to high quality the average sales will be increased by 225.4