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You have been asked to produce a forecast

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Question

5. You have been asked to produce a forecast for your company?s new product (bottled water). List and briefly discuss 4 factors you would consider before giving the forecast. Pg 143;a. A forecast must be consistent with other parts of the business. For instance, a sales forecast of 10% growth must ensure there are sufficient manufacturing facilities and labor force to produce this increase.;Is there anything that could prevent you from realizing the revenues and net profit you project? Product lines and storage. For example if the company is sharing the product line of its cola bottling line with its water product. What is the cost and time of retooling the same product line when the company switches products. How much does changing filters and purging the liquid lines cost. Also how much does the extra storage for the bottle water cost.;b. A forecast should be based on knowledge of the relevant past.;Where are potential customers located? Is the marketer who is carrying our water do they have health conscience customers, how did other similar companies do when entering water or health conscience drinks in their product line into the same or similar market. Does another marketer have a more water friendlier customer base then our current marketer? Can Global Foods enter into another product trade alliance to meet the more health conscience market without violating existing contracts.;c. A forecast must consider the economic and political environment as well as any potential changes.;How do you know they need or want your product or service? In current news, will the universal health care allow any credits or deductions for a healthier life style. Is the general population becoming health conscience. Does the economy allow for surplus income to pay for bottle water compared to free tap water?;d. A forecast must be timely.;Who, exactly, are the potential customers? Who will pay or afford bottle water. Can we retool or create a product line for bottled water in time for the summer weight loss efforts. Can we take advantage of an opportunity to capture some residual profit in conjunction with a health organization campaign or a competitor bottle water campaign.

 

Paper#29384 | Written in 18-Jul-2015

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