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Report on Lipton Ice Tea

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Report on Lipton Ice Tea
Report on Lipton Ice Tea
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Assignment

CONTENTS

Introduction................................................................................ 3
Demand Equation...................................................................... 4 Justification for the Chosen Variables................................... 4
Regression Analysis................................................................... 9 Explanation of results.............................................................. 9
Comments on Regression Analysis........................................ 11
Elasticity....................................................................................... 12 PED............................................................................................. 12 YED............................................................................................. 12 XED............................................................................................. 13
Competitive Structure of the Market....................................... 14
Strategic Decisions....................................................................... 14
Recommendations ....................................................................... 15
References...................................................................................... 16
Appendix........................................................................................ 17

INTRODUCTION

The company “A&P Enterprises Ltd.” was established in 1959. Since then it became one of the biggest beverage producing, importing and distributing companies in Cyprus. The company is operating in the importing and retailing sector of the market.
“A&P Enterprises Ltd.” is operating with a big product range including such worldwide known names as Pepsi and 7up.
In June 1996, our company entered into a franchise agreement with Unilever International Market Development Company for the production and marketing of Lipton



References: Anderton, A. (2006). Economics. 4th edition, Causeway Press, p.62 Case, K; Fair, R Draper, N.R. and Smith, H. (1998). Applied Regression Analysis. Wiley-Interscience Everitt, B.S Lindley, D.V. (1987). Regression and correlation analysis. Volume 4, p. 120 O 'Mahony, Michael (1986) (2010). Cyprus Population Growth, Available: www.cia.gov/library/publications/the-world-factbook/ (2010) http://www.foodanddrinkeurope.com/news/ng.asp?id=18257-unilever-pepsico-join (2010) (2010). Price Elasticity of Demand. Available: www.wikipedia.gov

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