Understanding the Market for Beverages at la Trobe University - Case Study Example

BUS1BAN) Business Analytics Group Research Project Understanding the market for soft drinks at Lat University GROUP MEMBERS: Student ID Number Student Name Average Effort Date:…………………………….. Understanding the market for beverages at la Trobe University INTRODUCTION This report seeks to examine the consumption of beverages in ..The subjects are both international and domestic students. Some of the beverages in the campus include beverages of tea, coffee, fruit juice, energy drinks and this was on the basis of cups, bottles or cans, and the number of times they consume the same in a given week. On the selection of the sample, the random method was used whereby the collected data was selected using the random method. Basic analysis The proportion of the international students 12/100x100=12% The proportion of the domestic students 88/100x100= 88% The relationship between price and the quantity of the consumed beverage in the sample From the sample it is evident that price do affect the quantity of the beverages bought in a given week. If the price of the drink is set up at $0.50 more students both international and domestic students are likely to consume more drinks. Additionally, if the price was set up at $1.00 and $1.5, the rate of consumption still remained high. However, from the sample, it is evident that if the price was $0.50 the consumption rate was reported at 1132 for a sample of 100 people. However when the price was set up at $5.00 then the total number of beverages that was consumed in that particular week stood at only 91. Therefore, from the sample it is evident that the higher the price, the less quantity of beverages consumed in a given week. The summary of the beverage preferences in both domestic and international students. The most preferred drink in the sample is other drinks such as water and milk. Followed by fruit juice, energy drinks, tea/coffee and then soft drinks in that order. There is possibility of the price affecting the preference. Section B The behaviour of the domestic students versus that of the international ones. 5. On the demand, the domestic students seems to consume more beverages than their counterparts who are international students. 6. The total number of soft drinks from the sample is 391. Hence the percentage consumed by the domestic and international students are calculated as follows: 88/100x391=344 bottles 12/100x391=47 bottles From the calculation, the demand for soft drinks for domestic and international students is 344 and 47 bottles respectively. On the demand for the other drinks, the calculation is as below Domestic students 88/100x1977=1740 International students 12/100x1977=237 Energy drinks Domestic students 88/100x 80=70 International students 12/100x80=10 Tea/coffee Domestic students 88/100x206=181 International students 12/100x206=25 From the above calculations, the total number of drinks consumed by international and domestic students is summarized as below: International students-47+237+10+25=319 students Domestic students-181+70+1740+344=2335 students It is evident that the demand for beverages is high among the domestic students compared to the international students. For international students, the most demanded for beverage is energy drinks and highly demanded one is soft drinks. For the domestic student, the highly demanded for drink is other drinks such as water and milk, and least demanded for is energy drinks. 7. Yes it is evident that the aspect of price affects the demand for beverages more among the domestic students compared to the international ones. For example, when the market price for a drink was $0.5 a high number of domestic students made their purchase compared to the international ones. 8. Suppose, you randomly selected a student from last semester’s BUS1BAN classes. [a] What is the probability that a student selected in a randomly selected sample will be between 85 for domestic students and 12 for international students? Student origin Chances Probability International (0) 12 0.12 Domestic (1) 85 0.88 In the table above, there is a 12% chance that a randomly selected student is an international student and an 88% chance that the student is a domestic student. This is at a confidence interval of 48.5±10.2724. [b] How likely is it that the student will choose soft drink (Coke, Pepsi etc) as their first preference? Preference Chances Probability 1 17 0.18 2 15 0.15 3 22 0.23 4 26 0.27 5 17 0.18 There is 18% chance that randomly selected student will choose soft drink as their first preference at a confidence interval of 19.4±0.8975. This means that their preference falls between the ranges 20.2975 to 18.5025. [c] What is the probability that the student will choose tea/coffee as their second preference if he/she selected soft drink (Coke, Pepsi etc.) as the first preference? There is 9% chance that a student who chose tea/coffee as their second preference and soft drink as first preference will be selected at a confidence interval of 19.4±0.7540. 9. Test that more than 25% of the students at La Trobe prefer soft drinks (Coke, Pepsi etc.) over any other beverage. ANOVA at 1% Source of Variation SS df MS F P-value F crit Between Groups 0 4 0 0 1 4.43069 Within Groups 0.347327 20 0.017366 Total 0.347327 24         ANOVA at 5% Source of Variation SS df MS F P-value F crit Between Groups 0 4 0 0 1 2.866081 Within Groups 0.347327 20 0.017366 Total 0.347327 24         ANOVA at 10% Source of Variation SS df MS F P-value F crit Between Groups 0 4 0 0 1 2.248934 Within Groups 0.347327 20 0.017366 Total 0.347327 24         From the above results, it can be concluded that the means of student preferences for soft drinks (Coke, Pepsi etc.) over any other beverage are not different meaning that the claim that more than 25% of the student prefer soft drinks (Coke, Pepsi etc.) over any other beverage is rejected. 10. Impact of the increase of students on to the aggregate beverage consumption   Average Domestic International Soft drinks (Coke/Pepsi etc.) 4.03 1.61 2.42 Fruit Juice 2.88 1.15 1.73 Tea /Coffee 7.81 3.13 4.69 Energy drinks 0.82 0.33 0.49 Other (water, milk drinks etc.) 20.38 8.15 12.23 Average 2.87 4.31 The increase of students to 25000 from 20000 will impact on average beverage consumption in a way that domestic student will consume on average 3 serves on the drinks of their choice while those international students will consume on average of 4 serves. SUMMARY From the analysis of the data, it is evident that domestic students like beverages compared to the international students. Additionally, the price of beverages likely to interfere with the demand. For example, the cheaper the beverage the higher the demand. In the table above, there is a 12% chance that a randomly selected student is an international student and an 88% chance that the student is a domestic student. This is at a confidence interval of 48.5±10.2724. There should be no concern with the timing of the variation as there was enough sample to cater for any error. Lastly, the sample was ideal for the study because it was representative of the chosen population. Read More