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, and 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 *****ing technique where the first of ***** two years is weighted with.9 ***** the second with.1, a global market size ***** $37B is forecasted. This translates into 742M units world*****, with an upper r*****ge of 777M units globally based on ***** forecast. Production is set at 45M units, with a potenti*****l uplift to 54M units possible.

Secondly, projecting sales based on advert*****ing budget spend has been completed, using the ad budget as the independent variable in regression analysis. The correl*****ion coefficient of sales with the ********** budget is.96, which is very strong stat*****tically, 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 ***** analysis would lead to a $***** ***** budget. Sett*****g the ********** budget ***** $169M is perfectly aligned ***** the correlation coefficient of *****. The strength of this correlation is stat*****tically significant and supports previous analyses into ***** impact of advertising spending on


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