Essay - Sales Forecast Subject: Sales Forecast Memo as the Denim Marketplace...


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Sales Forecast

Subject: Sales Forecast Memo

As the denim marketplace continues to show moderate unit and financial growth year over year, ***** as demand for Blue's denim products shows wide seasonal variation, having a solid forecast to plan both advertising budgets and production from are critical.

Using a 2 year weighted average forecasting technique where ***** first of the two years is weighted with.9 ***** the second with.1, a global market size of $37B is forecasted. This translates into 742M units worldwide, with an upper range of 777M units ********** based on ***** forecast. Production is set at 45M units, with a potenti*****l uplift to 54M units possible.

Secondly, projecting sales based on ***** budget spend has been completed, using the ad budget as the independent variable in regression analysis. The correlation coefficient of sales with the *****vertising budget is.96, which is very strong stat*****tically, and shows that the advertising budget needs to be at le*****t matching $162M if the company is to attain its primary sales objective.

Expected sales for the year is $2.4M which using ***** ***** coefficients completed in the ***** would lead to a $***** ***** budget. Sett*****g the advertising budget of $169M is perfectly aligned ***** the correlation coefficient of sales. The strength of th***** correlation is stat*****tically significant ***** supports previous analyses into ********** impact of ***** spending on

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