Prepare forecast for the soft drink industry using Seasonal Model method.Prepare market share forecast using Linear Regression method.Calculate Bubble Up Company forecast by multiplying market share with industry forecast.

1). How to calculate Bubble up company forecast?

Steps:

Calculate forecast for soft drink industry by using classical decomposition.Calculate Bubble Up Company's market share of the industry sales using linear regression model.Calculate Bubble Up Company?s forecast by taking market share percent of the industry sales. For example, if the industry sales for a quarter are 100,000 units and Bubble Up market share for the same quarter is 7%, then Bubble Up sales forecast for that quarter will be 7,000 units.

2). How to write the report? Executive Summary-- This is the summary of the report about one paragraph long. Problem Definition-- Describe is your words what problem you are analyzing, e.g. forecasting industry sales and Bubble Up market share and then calculating Bubble Up sales forecast etc. Solution Procedure-- Write about the models you are using and justify why that model is being used. For example, linear trend model should be used when the time series has linear trend. Results-- Write the results of your analysis. Conclusion and recommendation-- write any conclusions. Attach computer outputs, graphs, charts to the report.

Case 1: Bubble Up Bottling Company

The Bubble UP Bottling Company of Budapest, Hungary, is interested in forecasting sales of Bubble Up over the next two years. The company has analyzed Bubble Up's market share for its service area over the past 20 quarters. Market share has generally been growing as indicated in the table B below. During this same five year period, total soft drink sales in the region (as measured in 100,000s of cases) have been as in the table A below.

The company would like to forecast Bubble Up soft drink sales for years 6 and 7. To do so, use a linear trend model to forecast market share for each quarter of years 6 and 7 and seasonal model to forecast total soft drink sales in these periods. Then multiply the forecast of total soft drink sales by Bubble Up's sales during this period. Prepare a business report to Bubble Up management containing your forecast and explaining your approach.

Transcribed Image Text:

Season Winter Spring Summer Fall 1 114 130 158 131 2 114 146 177 142 Table A Year 3 124 151 175 146 4 132 160 184 144 01 5 134 166 205 148 Year 1 1 1 1 2 NNNN 2 2 2 3 3 3 3 4 44 4 4 45555 4 5 5 5 Table B Season Bubble Up's Market Share (in Percent) Winter Spring Summer Fall Winter Spring Summer Fall Winter Spring Summer Fall Winter Spring Summer Fall Winter Spring Summer Fall 6.42 6.58 6.99 6.82 6.64 6.46 6.7 7 6.7 6.84 6.78 6.48 6.93 6.79 6.83 7.21 7.73 8.16 8.36 8.23 Season Winter Spring Summer Fall 1 114 130 158 131 2 114 146 177 142 Table A Year 3 124 151 175 146 4 132 160 184 144 01 5 134 166 205 148 Year 1 1 1 1 2 NNNN 2 2 2 3 3 3 3 4 44 4 4 45555 4 5 5 5 Table B Season Bubble Up's Market Share (in Percent) Winter Spring Summer Fall Winter Spring Summer Fall Winter Spring Summer Fall Winter Spring Summer Fall Winter Spring Summer Fall 6.42 6.58 6.99 6.82 6.64 6.46 6.7 7 6.7 6.84 6.78 6.48 6.93 6.79 6.83 7.21 7.73 8.16 8.36 8.23

Answer rating: 100% (QA)

Step 1 Determine total sales in year 6 and 7 using multiplicative seasonal method All the cells cont... View the full answer