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Demand Analysis And Forecasting Of Tea Industry      Using Multiple Regression Model ADITYA KANDOI    (10P064)                 ANIRVAN SEN           (10P067)           ESHA SHARMA          (10P075)  KARTHIK V                 (10P083)                 SAMBHAV AHUJA    (10P107)          PUNEET BINDLISH     (FPM)
Indian Tea Industry
Snapshot
Global Outlook
A closer look
		METHODOLOGY ADOPTED
		I)  MODEL SPECIFICATION 	Too many explanatory variables leads to econometric difficulties:                           a) Less Degree of Freedom                       b) Multicollinearity
		II)  DATA COLLECTION a) Prices of Tea
b)     No. of Customers
c)     Price of Sugar (Complementary Product)
d)      Consumer Income
CONSOLIDATED DATA
		DEMAND EQUATION Qx = c + c1*Price + c2*No_customers + c3*Price_sugar +              	                     c4*Price_coffee  + c5*Income + e C’s e Qx
		REGRESSION RESULT
		        ANALYSIS
		                       ANALYSIS                                  contd…
		   REGRESSION REVISITED
		             ANALYSIS REVISITED
		                       ANALYSIS                                  contd…
Demand Forecasting Using Eview5, a graph is drawn for forecasting the demand of tea.
Outlook
Economics Defied ,[object Object]
On the contrary, prices continue to harden
Reasons        ------------------Increase in consumption Demand for Restocking Excessive Rains in some parts of India
Pricing Strategies Important Strategic issue related to product positioning It affects other elements such as product features, channel decisions & promotions           How to determine it
Methodology
Closer Look Marketing Strategy & Marketing Mix ,[object Object]
  Product Positioning
  Tradeoff between quality & price
  Understanding Other Product  Distribution & Promotion DecisionsEstimate the Demand Curve ,[object Object]
Price Elasticity of Demand is determined
Inelastic Demand indicates that price increases might be feasible,[object Object]
  Variable Cost
  Fixed Cost
  Marginal CostEnvironmental Factors ,[object Object]
Neither too high
Nor too low
Legal Standpoint
Price Control – price ceiling
Too Low –may be ‘predatory’
Collusion with competitors - illegal,[object Object]

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