п»їSales and Distribution Management

Masters of Fashion Administration

2015

Department of Fashion Administration Studies

Assignment one

About Sales Foretelling of and Sales Budgeting

Submitted to: Dr . Sanjeev Malage

Published by: Nigussie Godana (MFM/14/SE2)

National Institute of Fashion Technology, Bangalore

Contents site no 1 . Assignment1A3

1 ) 1Techniques of forecasting3

1 . 1 . 1Moving Averages4

1 . 1 . 2Exponential Smoothing6

1 ) 1 . 3Linear Trend Analysis Via Linear Regression7

1 ) 2Suggestion to ITC company9

2 . Assignment 2B10

installment payments on your 1Sales budget10

2 . 2Methods of Sales budgeting10

2 . 3Recommended cost management methods as well as its justifications. eleven 3. Conclusions12

4. References12

1 . Assignment1A

ITC food division introduced in to toffee segment in Dec june 2006. The market size for toffee in India in 2005-2006 was at Rs. 2400 , 000, 000 and it absolutely was growing by 13 % annually. Get the present number and explain what revenue forecasting method would you suggest to ITC and why? Since ITC toffee's market share has not been found on any kind of report with the company, I assume that Toffee segment market share of the ITC food section as 1 ) 17% from the total marketplace size for the year (2005-2006) to (2009-2010), and 2 . 20% from the total marketplace size intended for the year (2010-2011) to (2013-2014) product

twelve-monthly market size in millions of Rupee

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

Toffee total market size

2400

2712

3065

3463

3913

4422

4997

5646

6380

Business of ITC

408

461. 04

521. 05

588. 71

665. 21

884. 4

666666666. 4

1129. 2

1276

Table one particular annual market size

1 . one particular Techniques of forecasting

In the ever-changing world of business being able to accurately forecast revenue is of the utmost importance. Predicting can be either quantitatively (objective method) or perhaps qualitatively (subjective methods) structured. Quantitative foretelling of uses historic data to project sales. Qualitative forecasting based on experience, judgment and intuition rather than on quantitative analysis. A qualitative technique includes researching the market, Delphi method, panel opinion, visionary prediction, historical analogy and product sales forces opinion. The vast acceptance of objective associated with recent years is primarily because objective methods have developed a list for precision and thus have inspired assurance in managers who utilize them as a help to decision making. Subjective strategies still count largely about intuition, nevertheless the practice of objective forecasting is more advanced. Marketers recognize that the rate of change in the promoting environment, as well as the increased uncertainty which this provides rise to, is producing the use of such intuitive methods more appropriate. Because of difficulty in obtaining the marketing environment of the toffee segment, it is not necessarily appropriate to travel for very subjective methods to outlook sales value and ahead suggestions to ITC based upon insufficient info. Rather, I favor to discuss objective method and choose the best substitute for the corporation. Some of the goal methods employed for sales predicting are moving average, exponential smoothing, pattern projection, spectral analysis, causal method (regression analysis), econometric analysis, input-output model and life circuit analysis. I actually focus solely on the 3 quantitative techniques namely shifting average, exponential smoothing, trend analysis, and linear regression approaches to foretelling of. 1 . 1 ) 1 Going Averages

Going averages are viewed as to be the easiest way of quantitative forecasting to formulate. This particular way of forecasting is basically a smoothing model, that makes forecasts more accurate. The basic idea behind the...

References: http://wiki.fool.com/Objective_Task_Method_of_Budgeting#sthash.vNMvXobJ.dpuf

http://management.cloud-journals.com/index.php/IJAMR/article/download/Mgmt-25/pdf

http://www.learnmarketing.net/marketingbudgets.htm

https://www.scribd.com/doc/28091461/Sales-Budget

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