Pricing Effect On the Sales of Coca-Cola

Problem Definition
Coca Cola has developed a new package of 500 ml bottle into 600 ml bottle for increasing their sales volume and also with a view to reduce the packaging cost. The basic purpose of this study is to determine whether there is any change of sales volume or the basic concept of product development has worked in the market or not

Research Design:
Price and sales has a cause-effect relationship. Hence we have used causal research methodology here. Shops of three different regional area has been visited and collected data of sales volume

Shopkeepers of three different test markets to collect the data

How many bottles (500ml) of Coca-Cola have you sold per week when the price was Tk 28.00?
How many bottles of (600ml) of Coca-Cola

now are you selling after change of package? Are the customers satisfied with the new bottle? Do you think new package will increase the sales volume?

Sample Design:
A survey of approximately 20-25 shops in each area has been interviewed for this study. Sales volume collected from different shops gathered separately for each test market. Shops of Motijheel, Banani and Gulshan provide sales volume which computed and analyzed for decision making.

Unit Sales in thousand

Test Market Previous Price TK. 5.60 (100ml) Reduced Price TK. 5.00 (100ml)

Motijheel

11.2

13.0

Banani

13.5

15.6

Gulshan

8.5

12.0

Sales volume at Different unit price

16 14 12 10 8 6 4 2 0 5.6TK 5.6TK 5.6TK 5TK 5.6TK 5TK 5TK 5TK

X1=11.0667, X2=13.5333, X=12.3 SS (total)=28.56, SS (Within)=19.4333 SS (between)= 9.1267 MS (between)= SS (between)/(n-1) 9.1267 Degrees of freedom f=2 MS (within)= SS (Within)/(3f-f)=4.8533 F= MS (between)/ MS (within)=1.878559 Numerator (f-1)=1 Denominator (3f-f)=4 The critical value for F at 95% confidence level for degrees of freedom 1 and 4 is 7.71 which is not equal to the calculated value of F.

Hypothesis Test
Null hypothesis H0

X1=11.067 Alternative hypothesis, X1>11.067

Here the calculated F value 1.8775 is not equal to the critical value of F at 95% confidence level. So cannot reject the null hypothesis which conclude that change of packaging or price produce the same sales volume.

Conclusion:
This research conducted with only one independent

variable sales volume. We have studied whether there is any change in sales. It was very difficult to collect the accurate data of sales volume per day from three test market in Dhaka. There is also scope increase the number of dependent variable which may conclude any new decision for new package design.

Thank You All