Fueling Sales at EuroPet Harvard Case Solution & Analysis

Introduction:

Success of any company is dependent upon its brand image and brand positioning which eventually impacts the sales of the product. EuroPet is branded as a multinational company with its widespread operations in different countries of Europe. Problem of the company is to overcome the intense competition faced due to increasing number of supermarkets in the gasoline business. The company is spending too much on advertisements.

“Is there any impact of heavy advertising budget, fuel volumes and temperature on the sales of C-store?

Company is trying to develop the strategies for improving its sales of C-stores by optimizing its costs. This can be done by looking at the weekly data by taking the impact of its independent variables over dependent variables by performing the statistical interference tests for testing the relationship and impact. This will help to support the results of the studies previously done by others or the contradictory results which may be new for the company to forecast its sales in a better way.

The prime focus of this research is to justify whether its advertising budget is maximizing the sales or it results in loss for the company. It is also considerable for the company to test through this research the impact of fuel prices reduction which would result in increasing or decreasing C-store sales. The impact can be determined through regression analysis for testing the model fit through using different variables which are mentioned in the data analysis part in more detail.
Fueling Sales at EuroPet Harvard Case Solution & Analysis

This paper will follow a pattern after the introduction by the findings and methodology used by the other researchers in literature review. It will be following the description of data and data analysis and concluding remarks of the findings.

Literature Review:

C-store sales is significantly affected by many variablesand it has been testedby many researchersin their studies separately or combined. It has been analyzed to test the relationship between fuel prices and sales by using panel data methods and strategy of instrumental variables. The findings show that there is insignificant relationship of fuel prices on the sales of its products as it increases the margin by only 20 to 25% and this will result in only increasing consumer’s demand (Wilson, 2015).

Another research was conducted on Chicago superstore to test the impact of advertisement through television on the sales of brand. This can be analyzed through brand recall and brand positioning by doing advertisement. The findings of the study show that sales are significantly impacted by advertisements however, if the competing brand’s advertisements is also done at the same time. Then, it will not have significant impact on the increasing sales of company’s brand(Danaher, 2008).

Researches show that there are more drivers for impacting sales other than TV advertisements such as; store fliers and newspaper which are cost efficient solutions for the company but there is another cost effective solution which may have more impact on improving sales is Radio. It shows that there is insignificant relationship and impact of Radio on improving sales of the product as very few customers get attracted by just listening about the brand name......................

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