Sales ForecastSales Forecast

Sales ForecastingSales Forecasting

Art and scienceArt and science Complete process for each Complete process for each

segment where you are offering segment where you are offering productproduct

Process ExampleProcess Example

1.1. Turn to the Turn to the Foundation® FastTrackFoundation® FastTrack, , page 5, the Low Tech Market page 5, the Low Tech Market Segment Analysis. Segment Analysis.

2.2. Multiply "Total Industry Unit Demand" Multiply "Total Industry Unit Demand" by the growth rate to discover the by the growth rate to discover the demand this year (i.e. 5,040 X 10 demand this year (i.e. 5,040 X 10 percent growth = 5544 million percent growth = 5544 million customer demand for this year). customer demand for this year).

3.3. Drop to the bottom of the page. Drop to the bottom of the page. Count the number of competing Count the number of competing products. products.

4.4. Adjust your count if you think Adjust your count if you think products will enter or leave the products will enter or leave the segment. segment.

5.5. Divide demand by your count. Divide demand by your count. The result is an estimate for the The result is an estimate for the average product's demand. This average product's demand. This assumes that all products are assumes that all products are equal. equal.

Adjust average Adjust average

• Compare your December Customer Compare your December Customer Survey score with competitors. Are Survey score with competitors. Are you above or below average? Adjust you above or below average? Adjust your estimate accordingly. your estimate accordingly.

• Consider your new decisions and Consider your new decisions and what you think your competitors will what you think your competitors will do. Adjust your estimate accordingly. do. Adjust your estimate accordingly.

Check production Check production abilityability

Turn to the Turn to the Foundation® FastTrackFoundation® FastTrack, , page 4, "Production Analysis". page 4, "Production Analysis".

Can the competing products make Can the competing products make enough units to meet their enough units to meet their demand? If not, expect to pick demand? If not, expect to pick up sales. up sales.

• Do you have sufficient capacity Do you have sufficient capacity to meet your demand? If not, to meet your demand? If not, adjust to the limits of your adjust to the limits of your inventory. inventory.

Repeat process for high tech Repeat process for high tech segmentsegment