# Kitchen Meatloaf Essay

718 Words3 Pages
Quality kitchens Meat Loaf Mix Report Quality kitchens Meat Loaf Mix Report Introduction Sally Franklin, the new brand manager of the Quality Kitchens meat loaf mix, has to prepare a sales forecast and a budget for promotion and advertising for the next year. Her forecast is based on the past 24 quarters' historical data, which includes sales, expenditure for promotion and advertising and an index of the general economic conditions in the meat loaf market area. Mrs. Franklin is confused by the great variability in the sales of the meatloaf mix from quarter to quarter, and also at the great variation in past expenditure for promotion and advertising. The purpose of this report is to help Mrs. Franklin explain the variability in the sales of the meat loaf mix from quarter to quarter by constructing the best model possible and to give strong arguments for future investments. Data Analysis Variables identification According to the historical data and the former manager's analysis, the following assumptions have to be considered in our report: * When treated the quarters as dummy by regrouping sales by quarters and calculating the correlation which indicated a negative correlation between q1 q4 and q2 q3. Thus we assume a seasonal Dummy variable Ds defined as Cold Season (Ds=0) which includes Quarter 1 &amp; 4 and Warm Season (Ds=1) which includes Quarter 2 &amp; 3. * For index of general economic conditions variation; we assume an initial index of 100 as a reference (Ir=100). The Variation of the Index variable Vi is defined as the difference rate between the index value of quarter n and the index reference: Vi = (IndexQn – Ir)/Ir * Then we integrated the key information regarding the delayed effect of both promotion and adverts on sales by adding 2 other parameters Delayed Promotion and Delayed Adverts. We considered that both