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, ***** 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 year weighted average *****ing technique where the first of ***** two *****s is weighted with.9 ***** the second with.1, a global market size ***** $37B ***** forecasted. This translates into 742M units worldwide, with an upper r*****ge of 777M units globally based on the 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 correl*****ion coefficient of sales with the advertising budget is.96, which is very strong statistically, 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 ***** $2.4M which ***** the correlation coefficients comp*****ed in ***** ***** would lead to a $162M ***** budget. Setting the *****dvertising budget ***** $169M is perfectly aligned ***** the correlation coefficient of sales. The strength of this correlation is statistically significant ***** supports previous analyses into ***** impact of advertising spending on

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