Case Study The market research department of M/s. Bengal Cable Company, Calcutta was entrusted with forecasting the demand for cables of the company….

Case Study

The market research department of M/s. Bengal Cable Company, Calcutta was entrusted with forecasting the demand for cables of the company. It was felt that the demand for cables is considerably influenced by the space of industrialization, power development transmission and industrial and house wiring. Bengal Cable Company is exclusively engaged in the manufacture of required by industry and housing.

While many factors such as the rate of building activity purchasing power, etc. are important in determining the demand for cables, it was felt that most of the demand for cables can be explained in terms of the growth of power consumption in the country. Since for industry and buildings, cables are a must, the price factor was not considered as significant variable in determining the demand for cables. After all this product has no substitute.

The market research department of M/s Bengal Cable Company, Calcutta, developed a model relating all India cable sales(Industrial and housing cables) to the peak demand for power in the country. The analysis based on the time series data has shown a strong positive correlation between all India cable sales and the peak demand for the corresponding year.

The estimating equation is as follows:-

            Yt=1173+28.5 Xt

Where Yt=annual cable sales 9in thousand coils) for all India in year t

      Xt=peak demand in million K.W. in year t

       r2=0.94

The Central Electricity Authority of the Government of India has estimated the peak demand for the year 2004 as 98.5 million K.W., taking into account likely industrial and building growth and the availability of power on an all India basis. As there is no marked seasonal fluctuation, it is considered proper to assume uniform monthly cable sales throughout the year. It is estimated that Bengal Cables market share in 2004 will be about 20 percent.

QUESTIONS

1. Find out the all India cable demand for the year 2004 and monthly estimated sales of Bengal cables Company.

2. The price factor was not considered important in forecasting all India demand for cables. Will the same be true in estimated demand for the company’s cables?

3. Suppose the market share of the company during the previous two years was 10 and 15 percent respectively. Was, therefore the company justified in assuring the market share as 20 percent?

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10