Eco 550 Assignment 1 Domino's Pizza
Making Decisions Based on Demand and Forecasting
Sylvia Evans
Dr. Elkanah Faux
ECO 550
January 27, 2013
Strayer University
In this assignment I will be discussing the t that Domino’s is considering entering the marketplace in my community of Waynesboro, GA. I have conducted research to gather information in regards to demand for this business based on population, average income per household and average cost of pizza in this particular area. The end results of this research and demand analysis we should be able to determine if this would be a wise investment move to make on Domino’s behalf.
Waynesboro is a fairly small town located in Burke County, GA. The current population for this town is about 5,781(www.city-data.com). The median income per household in my city from 2001 to 2011 has ranged from an estimate of about $27,166 to about $31,188 for the current day. The average cost of pizza from other pizza places over the years (2001-2011) ranged anywhere from $5.00 to about $18.00 depending on what you want and how you want it prepared. As far as household sizes they would range from about 1 person to about 5 people on average and the number of pizzas were hypothetically ordered were based on the number of people per household and how much income they were making. The more kids that are in a household the better the chances are of ordering pizza since it is no secret that kids love pizza. Another factor to consider would be single individuals who work long hours and prefer ordering put as opposed to cooking after a long day’s work. All these factors combined will help us determine if Domino’s should start a business in my hometown.
Other variables that are considered are my substitutes which are Subway subs. I chose subs because there are several individuals who are health conscious and would prefer to have something lighter to eat rather than pizza so this would be considered a competitor. Not only would subway have to be concerned about a competitor
Sylvia Evans
Dr. Elkanah Faux
ECO 550
January 27, 2013
Strayer University
In this assignment I will be discussing the t that Domino’s is considering entering the marketplace in my community of Waynesboro, GA. I have conducted research to gather information in regards to demand for this business based on population, average income per household and average cost of pizza in this particular area. The end results of this research and demand analysis we should be able to determine if this would be a wise investment move to make on Domino’s behalf.
Waynesboro is a fairly small town located in Burke County, GA. The current population for this town is about 5,781(www.city-data.com). The median income per household in my city from 2001 to 2011 has ranged from an estimate of about $27,166 to about $31,188 for the current day. The average cost of pizza from other pizza places over the years (2001-2011) ranged anywhere from $5.00 to about $18.00 depending on what you want and how you want it prepared. As far as household sizes they would range from about 1 person to about 5 people on average and the number of pizzas were hypothetically ordered were based on the number of people per household and how much income they were making. The more kids that are in a household the better the chances are of ordering pizza since it is no secret that kids love pizza. Another factor to consider would be single individuals who work long hours and prefer ordering put as opposed to cooking after a long day’s work. All these factors combined will help us determine if Domino’s should start a business in my hometown.
Other variables that are considered are my substitutes which are Subway subs. I chose subs because there are several individuals who are health conscious and would prefer to have something lighter to eat rather than pizza so this would be considered a competitor. Not only would subway have to be concerned about a competitor
References: City- Data.com (2013). Waynesboro, GA. [Data File]. Retrieved from http://www.city-data.com/ Pro Sets Statistical Data Sets. (2013) ProQuest libguides.com [Data File]. Retrieved from http://proquest.libguides.com/quick_start_stat_datasets United States Census Bureau. (2013) 2010 Population Finder [Data File]. Retrieved from http://www.census.gov/popfinder/ U.S. Bureau of Labor Statistics. (2013) Databases and Tools [Data File]. Retrieved from http://www.bls.gov/data/ Read more: http://www.investopedia.com/terms/s/statistical-significance.asp#ixzz2JEOXZPkX http://si.conquestsystems.com/statistical/Main.jsp;jsessionid=9CF2203194B5EE4367B12B4E22DF4DB7