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 forec*****st to plan both advertising budgets and production from are critical.

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

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

Expected sales for ***** year is $2.4M which ***** the correlation coefficients completed in ***** analys***** would lead to a $162M *****dvertis*****g budget. Setting the advertising budget ***** $169M is perfectly aligned ***** the correlation coefficient of *****. The strength of th***** correlation is statistically significant and supports previous ********** into ***** impact of ***** spending on

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