Statistics 747 – Project Part 1

Research Brief

DB Breweries who produce and sell the Heineken brand have come under increasing sales pressure from such brands as Steinlager and Stella Artois. They wish to see if they can increase sales of one dozen beer ‘trays’ by possibly offering a new shaped bottle, which is called XLN, whilst also maintaining a premium price for this product in keeping with its premium beer image. (Note: Stella Artois and Steinlager is also considered to be premium).

With this in mind they believe that premium beers can be offered on special discounts of $19.95 and up to a maximum price of $23.95 for a dozen of these premium brands.

DB Breweries would like to ascertain:

·  Whether they should bother going ahead with the new XLN bottle format or not?

·  How the 3 premium brands react to each other’s prices?

·  How does the Heineken brand affect the share of DB Export Gold (assume its price is fixed at $14.95 per dozen)?

·  Does it take share away from other premium beer (at usual prices)?

·  Does it take share away from other ‘mainstream’ beers (assume its is at a fixed price of $13.95)?

·  Inspect www.statistics.ac.nz/~reilly/proj1.ppt to see what the brands of interest are?

Your tasks are to:

1) Interpret the above information and produce an experimental design that measures all effects of interest

Notes:

a)  Any interaction effects will need to be estimable

b)  The SAS macros: %mktruns and %mktdes, which each can be found in www.stat.auckland.ac.nz/~reilly/choice.pdf, will be useful here

c)  A detailed explanation (in layperson’s terms) is required to find out describe why you came up with this design

d)  No more than 30 runs/scenarios may be given to each respondent.

2) Produce the relevant scenario set you would obtain from this design that you would display to possible respondents.

·  An example of two possible scenarios can be found in www.statistics.ac.nz/~reilly/proj1.ppt. This can be used as a template for producing the other scenarios.

Any inquiries contact .

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