Factors affecting the demand for soft drinks

Sammanfattning

This case study investigates the external factors that influence the demandfor different variants of soft drinks. Using multiple linear regression, thestudy analyzes the differences between sweeteners and packaging types.The models include the following external factors as regressor variables;”GDP”, ”CPI”, ”Soft drink CPI”, ”Temperature”, ”Hours of Sun”, ”Holidays”,”Vacation”, ”Season”, ”Unemployment”, ”Out of Stock”, and ”Search Data”.All variables except ”Out of Stock”, ”Vacation”, and ”Season” are significantat a confidence level of α = 0.1 in at least one of the models. All modelsinclude at least one economic variable, ”GDP”, ”CPI”, ”Soft drink CPI”,or ”Unemployment”, suggesting that the economic constraints of consumerslikely affect the demand for soft drinks. Furthermore, can models are moresensitive to seasonal changes such as holidays, temperature, and sunlight. Thishas implications for production planning, which require the production facilityto be prepared for seasonal variations in demand, especially with regard tocans. No clear differences were found between the sugar-sweetened and non-sugar-sweetened models. In conclusion, neither of the models should be usedas independent production planning tools but could be used as complementarytools.