Table of contents
1. Pepsi & Daimler AG introduction
2 .Why does it need forecasting?
3.Methods
4.improvement
Introduction:
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation
headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the
manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other
products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-
Lay. Pepsi is a carbonated soft drink manufactured by PepsiCo Originally created and
developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as
Pepsi-Cola on August 28, 1898, and then as Pepsi in 1961
Why Pepsi need the demand and forecasting ?:
Consumer demand today changes faster than ever before. As a result, new product launches
are failing at extremely high rates. After all, accurately assessing the market and predicting
demand requires terabytes of data, which ranges from point-of-sale numbers, e-commerce
transactions, out-of-stock histories, pricing averages, promotional planning, special events,
weather patterns, and a many other factors. To add to that, most enterprises continue to ignore
the significance of applying online consumer dialogue to predict future purchasing
behavior.There is also the factor of stock price prediction. Stock price prediction is a method by
which the stock market data at a specific time in the past is processed to forecast the stock
price in a future term. The companies also have to look out for any competitors so they also
need forecasting to stay ahead of their game
The methods used by pepsi:
1-one method is the time series method involving weighted moving average for pepsi cola for
forecasting as well as stock price prediction for pepsi.The immediate past is most relevant in
forecasting the immediate future. For this reason, weighted moving averages was used, when
more important period (sales, or return data) were considered. For example, sales are high in
summers for soft drink pepsi, so in winter expected sales are low, and then lower index was
used to calculate the winter forecast.
2-the other one is causal method in which the demand forecast is highly correlated with the
other environment factors such as the state of economy, product pricing or the rates of sugar
can cause a change in demand of the soft drink pepsi.
Analysis & Improvement:
Since there is rapid change in consumer demand ,it would be better if the company forecasts
according to consumer needs. For qualitative forecasting method like market surveys the pepsi
can collect the targeted data from social media & incorporate it with artificial intelligence to get
more accurate results ,if they forecast it according to consumer liking or disliking then it would
be more better for the company. Historic analogies can be done with artificial intelligence to
know more about the pattern of any similar soft drink pepsi want to launch in market.
Daimler AG:
Daimler AG previously named Daimler-Benz and DaimlerChrysler) is a German multinational
automotive corporation, headquartered in Stuttgart, Baden-Württemberg. Daimler-Benz was
formed with the merger of Benz & Cie and Daimler Motoren Gesellschaft in 1926. The company
was renamed DaimlerChrysler upon acquiring the American automobile manufacturer Chrysler
Corporation in 1998, and was again renamed Daimler upon divesting of Chrysler in 2007. In
2017, Daimler sold 3.3 million vehicles. By unit sales, Daimler is the thirteenth-largest car
manufacturer and is the largest truck manufacturer in the world. The company is the owner of
Mercedez-Benz.
Chesterfield car preparation centre:
car preparation centre features a 600 car outdoor stock holding capacity. It also has designated
indoor wet and dry valet bay facilities to work on 10 cars at a time as well as two indoor handover
areas able to accommodate 25 cars daily, the centre will enable the specialist PDI technical team to
prepare around 3,500 vehicles a year.
Why there is a need for Daimler AG to forecast?:
In recent years,car options like air conditioning, automatic gears, car stereo, sun roof etc were
getting more and more important for car manufactures. Especially at those car manufacturers which
offer cars individually to customer requirements, the options affect 30%-40% of parts by now
therefore, very detailed planning & forecasting of options becomes more & more important because
customer behavior varies concerning model varies from model to model and country to country it
seems necessary & reasonable to forecast each option for each model and each country separately
Methods :
There exist a lot of time series at mercedez benz where using naïve forecasts or moving average
yields excellent results.there are linear and non linear trends in it and seasonal patterns that tells
about the historical pattern that occurs with different customers .
Analysis & improvements:
That can be done by using scenario writing too by creating alternate scenarios or alternate
assumptions about future. where there is different type of demand of car specifications and with
the technology being updated, customer can ask for anything to be made into his car. Regression
analysis can also be used to measure the behavior patterns of the customer like the more the rich a
country is ,the more rich people it has, the more economically stable it is the more people would
buy an expensive, specifically designed car .
.
References:
https://martech.zone/enterprise-social-media-demand-prediction/
https://www.jitbm.com/JITBM%2016th%20volume/11%20supply%20chain.pdf
https://www.academia.edu/19777648/Pepsi
http://www.nnw.cz/doi/2018/NNW.2018.28.003.pdf
https://www.aaai.org/Papers/MSL/1996/MSL96-026.pdf
https://www.jct600.co.uk/news/chesterfield-gains-car-preparation-centre/13316/newsdetail.aspx
