The Influential Factors of Profit: A Case Study on a Healthy Snack in Current Food Market Base on Minitab

Han Chen, Yushi Dai, Muxuan Gao

2022

Abstract

As there are growing concerns towards food healthiness recently, especially after the outbreak of Covid-19 pandemic, packaged healthy snack is gaining a larger marketing share in the snack market. For this specific type of snack to better make a profit, the motivation of this study is to explore what factors in the current food market could affect the profit earned by launching a new packaged healthy snack. To solve the problem, this study made a case study on SMARTFOOD company. It used a multiple regression model to further investigate the independent or interactive effects of price, advertising, number of stores, and geographical location on K-Pack sales. Minitab software was used to build the multiple regression model, calculate relevant data, as well as conduct best subsets with the selected independent variables. The point of this study is that all except the geographical location is an important reason for profit growth. This research concludes that price, number of stores, and advertisement positively affect profit. Also, selling location in the store and city the store is in are not important factors for deciding the profit. Moreover, the interaction between price and the number of stores leads to a negative influence on profit. In the case of SMARTFOOD, the company should choose the combination of 50 cents per package and 3 million advertising costs to receive the highest profit. The theoretical and marketing implications of the study’s conclusion are then discussed.

Paper Citation

in Harvard Style

Chen H., Dai Y. and Gao M. (2022). The Influential Factors of Profit: A Case Study on a Healthy Snack in Current Food Market Base on Minitab. In Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI; ISBN 978-989-758-620-0, SciTePress, pages 674-681. DOI: 10.5220/0011754300003607

in Bibtex Style

@conference{icpdi22,
author={Han Chen and Yushi Dai and Muxuan Gao},
title={The Influential Factors of Profit: A Case Study on a Healthy Snack in Current Food Market Base on Minitab},
booktitle={Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI},
year={2022},
pages={674-681},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011754300003607},
isbn={978-989-758-620-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Public Management, Digital Economy and Internet Technology - Volume 1: ICPDI
TI - The Influential Factors of Profit: A Case Study on a Healthy Snack in Current Food Market Base on Minitab
SN - 978-989-758-620-0
AU - Chen H.
AU - Dai Y.
AU - Gao M.
PY - 2022
SP - 674
EP - 681
DO - 10.5220/0011754300003607
PB - SciTePress