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Identifying Non-Price Factors Affecting Beer Products Sales in Russia, Assessment of Their Infuence, Analysis

Student: Pyatkina Anna

Supervisor: Angel Barajas

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Management and Analytics for Business (Master)

Final Grade: 9

Year of Graduation: 2020

It has been proven that various non-price factors influence the volume of beer product sales. In Russia there have been no studies investigating the influence of such a non-price factor as the weather conditions. Objectives of this paper: find out if the weather conditions affects the volume of beer products sales in Russia; determine which of the weather factors are significant in the regression of beer sales in Russia; define how exactly significant weather factors affect sales of beer products; identify how weather factors affects sales of beer products within different regions. The main statistical method, which is used in this research, is multiple regression with fixed effects. Database include information about beer sales of 604 different SKU (stock keeping unit), 78 brands in 24 cities and weather conditions in 24 cities daily during three years from 2017 to 2019. It was explored the impact of such non-price factor as daily weather on volume of beer products sales in different regions on basis of daily and weekly data. Such independent weather variables are used: air temperature, atmospheric pressure at station level, atmospheric pressure at sea level, humidity, wind speed, temperature of dew point. price factors: price per dekaliter in rubles and volume of discount and dummy variable of non-working days. Dependent variable: volume of beer sales in dekaliters. Furthermore, data includes products characteristics. For the fixed variables were chosen city, year and SKU. We found that weather conditions have influence on beer sales . In addition, it is possible to establish exactly which weather variable is significant and how. The analysis proves that depending on the territorial location of the region, its characteristics and features, weather conditions will effect volume of beer sales in different ways. The list of significant weather variables: air temperature, atmospheric pressure at station level and sea level, humidity, wind speed.

Full text (added May 15, 2020)

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