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


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Sales Forecast

Subject: Sales ***** 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 ***** plan both advertising budgets and production from are critical.

Using a 2 ye*****r weighted average *****ing technique where ***** first of the two years is weighted with.9 and 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 *****ly based on ***** forecast. Producti***** is set at 45M units, with a potential uplift to 54M ***** 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 advertising 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 ***** year is $2.4M which using the ***** coefficients comp*****ed in the analysis would lead to a $***** ***** budget. Setting the advertising budget ***** $169M is perfectly aligned ***** the correlation coefficient of sales. The strength of this correlation is stat*****tically significant ***** supports previous analyses into the impact of advertising ********** on

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