Looking for some help on this problem. Thank you in advance 

 

 

Suppose that you are the market analyst for the burger chain, Brother's Burgers, which
wants to build a new restaurant in a city with three existing burger restaurants. Your job
is to predict next week's market share for your restaurant based on last week's market
share.
For this current week in this city, Papa's Burgers has 27.6% of the burger
market; McDuck's has 32.9%; and The Burger House has 39.5%. The typical customer
of these restaurants eats at one of them once a week. Each week some portion of the
customers might switch from their previous restaurant to one of the other two. Based on
previous data, the probability of a Papa's customer staying with Papa's is 90%. The
probability of Papa's customers switching to each of the other two restaurants is 5%.
McDuck's customers remain loyal 91% of the time with 6% of McDuck's customers
switching the next week to Papa's, and 3% to The Burger House. The Burger House has
very loyal customers. Only 6% switch away from them, 2% going to Papa's and 4% to
McDuck's. • Determine the distribution of market shares over the next couple of weeks. • Determine the equilibrium vector for the distribution of market shares. You must now analyze what would happen to the current burger market if your
company built a restaurant in this city. Based on your company's performance in similar
markets and surveys you have conducted in this city, you expect your company,
Brother's Burgers, to keep 97% of its customers each week, losing only 1% to each of
the other three restaurants. You also expect to take 2% from each of the other
restaurant's returning customers.
•
•
• Determine the distribution of market shares over the next couple of weeks.
Determine how long it will take after your company's restaurant opens for it to
achieve a 20% market share.
Determine the equilibrium vector for the distribution of market shares. Based on your bold prediction for success, your company has decided to build a
new burger restaurant, Brother's Burgers, in this city. To attract customers during the
first weeks of its operation, your company will run a special promotion. Three burgers will be specially priced to compete favorably against the best-selling burger of each of
your three competitors. Your restaurant's Super Lean Burger uses 0.2 lb of beef and
0.03 lb of seasoning mix. It will be priced at a loss of $0.12 per burger. The Deluxe
Stuffed Burger uses 0.23 lb of beef and 0.1 lb of mix. It will be sold at a loss of $0.08.
Finally, Super-Duper Deluxe Burger uses 0.3 lb of beef and 0.01 lb of mix. Your
company will lose $.05 on each burger of this type sold. Your restaurant's chef has
ordered and allocated 3000 lb of beef and 400 lb of seasoning mix for making the
burgers during this promotion. Your company's accountant has set a limit of $1000 loss
for this promotion.
• Determine the number of each type of burger your restaurant should plan to sell
during this promotion

Attachments:

• 1492743254-QUESTION 3.docx