Reference no: EM133031460

Case-03: Keshav Furniture Pvt. Ltd Keshav Furniture Pvt. Ltd. was established in 1950, and since its inception, has shown an average growth rate of 12 per cent per annum. Specializing in home and office furniture, ithas also been exporting its products for the last seven years. Over the years, the company has gained reputation for its durable and comfortable designer products, which offer lots ofconvenience to the users Mr Keshav Prasad, the owner of the company, was happy with the growth of the company.According to him, 'Our products are far superior to that of our competitors in terms of quality, durability, range of designs and value for money.'The real estate prices in Delhi and its neighboring areas of Gurgaon and Noida  have gone up at an exponential rate. Therefore, the demand for studio apartments and small two-bedroom flats is increasing. Mr Prasad is considering launching three styles of sofas ideally suited for two-bedroom flats. These sofas are compact, occupy very little space and areaffordable.

The price range for the three styles varies from Rs.70,000 to Rs.75,000. There is a differenceof about 10 per cent in their cost of production.

Mr Prasad was wondering which style of sofa would sell the most, and the reasons thereof.A meeting of the top management was called to discuss the same. During the discussion, a point that came up was that the sale need not only depend on the style of the sofa but alsoon the size of the store where the sofas are sold. It was therefore decided to conduct an experiment which would help to answer whether the sales would vary across styles andstore size.

QUESTION 1. How would you design an experiment to achieve the objectives stated above?