Making Decisions Based on Demand and Forecasting Assignment

Making Decisions Based on Demand and Forecasting - Assignment Example For this assignment, Dominos is having thoughts of venturing the market place in my community, which is the Jackson, Mississippi community. Therefore with this said, the objective of this paper is to conduct a demand analysis and forecast for pizza. This will enable me decide as to whether Domino’s pizza store should be founded in Jackson, Mississippi. My community Jackson is Mississippi’s capital state and has a very high population compared to others in Mississippi. Jackson County got its name from Andrew Jackson, as at the time he was the general until after quite a number of years he became the United States president. According to latest demographics research conducted in the year 2012, while Mississippi has 2,967,297 people, with Jackson County having 173,514 (United States Census, 2012). Jackson community has quite a number of industries where people make their living; these comprise of food processing, electric and machinery, agriculture and livestock farming (C ity of Jackson, 2010). Pizza is a food that is enjoyed by not only children, but also the entire family at large. This is why Dominos should open a store at Jackson community especially judging from the demographics and independent variables. Demographics are different kinds of attributes used when determining consumers buying behaviors as well as product preferences. The first is income whereby according to statistics done in Jackson community 80 percent of people living in this community have a salary, another 55 percent are self employed, 20 percent have investments that earn the money. Most of the population in Jackson community earn between $10K and $25K (United States Census, 2012). This means that if Dominos opened a store the people in Jackson community will be able to afford buying pizzas and sodas severally which means good business for Dominos. The Dominos price for a 2-liter soda is approximately $2.50. This is what makes people love Domino’s pizza the world over and that is because of their affordable prices. There are numerous deals and offers whereby customers get discounts. The other demographic and independent variable entails age: especially since organizations’ goods and services appeal to different age groups. Luckily, for Dominos children, teenagers as well as young families love pizza, which means if Dominos were to open a store in Jackson community where there is a huge population, they would get booming business. According to age demographics in Jackson community, the highest population is between 5 and 44 years with females taking the highest numbers. This age group is what will make Domino’s pizza a success in Jackson community. Regression equation is calculated by finding Y=50+0.03X Independent variable X=number of pizzas Dependent variable Y= cost of pizzas X=100 pizzas Y= 53$ From the calculations I have made I will interpret the coefficient of determination indicating how I will influence my decision to open t he pizza business. The number of pizzas people will buy is dependent on the price of pizzas they can afford especially based on the income they are making. Since the number of pizzas that people can afford to buy is high even if they do not have quite a lot of money, this shows that Dominos would make good business, as the people in Jackson community will be able to buy. Based on the demographics and independent v