Case 5: Forecasting
Case 5: Forecasting
Case 5: Forecasting
Branded Products, Inc., based in Oakland, California, is a leading producer and marketer of household
laundry detergent and bleach products. About a year ago, Branded Products rolled out its new Super
Detergent in four western states, following success in more limited test markets. This isn’t just a “me too”
product in a commodity market. Branded Products’ detergent contains Branded 2 bleach, a successful
laundry product in its own right. At the time of the introduction, management wondered whether the
company could successfully crack this market, dominated as it is by Procter & Gamble and other big players.
The following spreadsheet (or table) shows weekly demand data and regression model forecast
results for Super Detergent over the past seven months (30 weeks):
Constant 850.04
P Px Ad Y T
X Coefficient (s) -5.033 4.744 0.277 0.011 1.309
Std. Err. Of Coef. 0.439 0.970 0.105 0.001 0.753
t-statistic -11.455 4.892 2.652 11.000 1.738