Domino\'s Pizza is considering entering the marketplace in Columbus Ohio. Conduc

Question

Domino's Pizza is considering entering the marketplace in Columbus Ohio. Conduct a research about the demographics of Columbus Ohio including the population size, average income per household, and other independent variables (such as the price of pizza in Columbus Ohio and the price of soda in Columbus Ohio. Conduct a demand analysis and forecast for pizza and decide whether Domino's should establish a presence in Columbus Ohio.

Report all demographic and independent variables that are relevant to complete the demand analysis providing a rationale for your selection of variables.

Using a calculation software, input the data you collected in criterion one to calculate an estimated regression. Then from the calculation provided interpret the coeficient of determination indicating how it will influence your decision to open a pizza busiiness. EXPLAIN any additional variables that may improve the coefficent of determination (such as delivery of product, other pizza restuarants in the area).

Test the statistical significance of the variables and the regression equaion indicating how it will impact your decision to open a pizza business.

Forecast the demand for pizza in Columbus Ohio for the next four (4) months using the regression equaion, including the assumptions that were used to create the demand. Justify the assumptions made related to the forecast.

Based on your forecasting demand, determine whether Domino's should establish a restaurant in Columbus Ohio. Provide a rationale and support for your decision.

CITE AT LEAST 2 DIFFERENT GOVERNMENT SOURCES FOR DEMOGRAPHIC INFORMATION YOU COLLECTED

Explanation / Answer

Forecasting demand is an important task for just about any type of business. Accurately projecting the demand for specific goods and services helps companies to order raw materials and schedule production of those products in a timely manner, making it possible to fill consumer orders quickly and efficiently without the need to build up a large inventory that adds to the tax burden of the business. While the process may vary in detail from one setting to another, there are a few basic steps that can make demand forecasting a much simpler process. 1 Identify the products that are to be considered as part of the forecast process. Doing so helps to create a sense of focus for the effort and make it easier to gauge the public's recognition and attraction to those products, rather than simply relying on the overall reaction of consumers to the brand name or the overall product line. 2 Set parameters for the demand forecast. Establish a specific time frame for the projection, such as the beginning of the second quarter to the end of that same quarter in the upcoming business year. This makes it easier to include events that are highly likely to occur in that time frame and have some effect on consumer demand for the product under consideration. 3 Determine the target market or markets for the product. The market may be composed of demographics that have to do with age, gender, location or any other set of identifying characteristics desired. This can also add focus to the demand forecast since it helps the business understand the level of business volume that can be reasonably anticipated from that demographic. 4 Gather data relevant to the effort to forecast demand. Information such as a breakdown in population within targeted areas, dividing by age groups or economic classes, can often help make it easier to determine the approximate number of sales to anticipate during the period under consideration. 5 Calculate the actual forecast. While there are several different formulas used for this process, most will require assuming that a fixed percentage of the target market will consume the product a certain number of times during the forecast period. Typically, those percentages are based on either industry standards relevant to the product or the actual 6 Demand forecasting is the activity of estimating the quantity of a product or service that consumers will purchase. Demand forecasting involves techniques including both informal methods, such as educated guesses, and quantitative methods, such as the use of historical sales data or current data from test markets. Demand forecasting may be used in making pricing decisions, in assessing future capacity requirements, or in making decisions on whether to enter a new market.

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