Sales Forecast and Predictions Memo

Topics: Moving average, Forecasting, Future Pages: 1 (257 words) Published: April 23, 2011
TO: Mayra Reid, Vice President of Production, Blue Inc.
FROM: Market Analyst.
DATE: April 23, 2011
SUBJECT: Final Sales Forecasts and Predictions.

In response to Blues Inc. efforts to maintain a profitable business and maintain continues growth, the market analyst has evaluated the market and Blues Inc.’s financial information and made some decisions that will positively impact the forecasted sales of Blue Inc. The decision made by the analyst on the first week was to increase the advertising budget to $169 million. This increase in the advertising budget will allow Blues Inc. to have a stronger marketing plan and to advertise Blues Inc. across the country. According to the reports the correlation coefficient of sales and advertising budget is .96. This correlation means that a strong advertising budget will have a strong positive impact in our sales forecast. The decision made on the second week is based on the analysis of fluctuations in the market size and the forecast for sales. Because the analyst did not have enough experience with this type of analysis, the simple moving average model was used. However, according to the comments from the other stakeholders the 2-perio weighted moving average with weight of 0.9 should have been used for this observation. Therefore, the prediction might not be as accurate as the one given in the first week. Nannanankanskjndkajsfkjashkfhajshfkjashfkjhaksfhajshfkjashfk

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