Analyzing Sales at REALAPP
Prerequisite Conceptual Understanding
Prerequisite Conceptual Understanding (PCU) material is the background material that would aid immensely in mapping the decision areas of this caselet and bring a synthesis amongst the relevant concepts. The participants/students should be encouraged to read this material to benefit from the broader perspectives outlined in the caselet.
- • Richard I. Levin and David S. Rubin, “Chapter 13: Multiple Regression and Modeling Techniques”, Statistics for Management, 7th Edition, Pearson Education, 2008
This caselet enables understanding of the application of Multiple Regressions Analysis. REALAPP is a growing fruit juice-maker in Bangalore, India. Since its inception in 2005, the company witnessed a slow growth due to heavy competition from renowned brands. Having discussed with a consultant and his subordinate teams about the marketing and sales concerns, Rohit Motilal, the Founding Director wanted to analyze the factors affecting the sales of the company. Motilal assigned Rupali Malhotra, a new executive for backend operations, to collate the past data on quarterly sales, number of distributors, distributors’ margins, company’s sales force strength, sales incentives paid for each quarter and the expenditure on advertisement for each quarter. The director wanted to draw conclusions from the analysis.
- • To understand the concept of Multiple Regression Analysis
- • To analyze the variables that are correlated with the sales and the variables that describe the variability in sales
- I. Analyze the variables that are correlated with the sales and the variables those describe the variability in sales of REALAPP.
The Teaching Note follows a defined Teaching Plan [Annexure (TN)-I], which guides in conducting the classroom discussion.......