Operations Strategy Case Study

Case Title:

Demand Forecasting of Magic Foods using Multiple Regression Analysis Technique

Abstract:
South India-based Magic Foods, a leading manufacturer of pickles, has been selling its products under the brand name ‘Magic’ for over the last two decades. Magic Foods is engaged in the manufacturing and marketing of high quality Indian processed foods such as pickles, spice pastes, instant mixes, etc. Of late, the management of Magic Foods started facing two problems. The first one is to identify the factors that can increase the sales and the second one is to predict sales for the next year. To find out a solution, Magic Foods sought the help of a marketing agency, Care Research. The Marketing agency started its research task to find out the factors influencing the sales and to forecast the sales for the next year. To solve the problem, the company applied Multiple Regression Analysis technique. Using Multiple Regression Analysis Technique, one can predict the values of dependant variables by estimating the values of independent variables. After processing the surveyed data, Care agency was able to provide solution to the problems of Magic Foods.

Pedagogical Objectives:

The case study helps the students to understand:
• The concept of linear regression, how to use it and how to interpret the results of the regression analysis, given an appropriate situation
• How to use the regression model for forecasting future values.

Keywords : Business Research, Statistical Technique, Multiple Regression Analysis, Dependant variables, Independent Variables, Forecast