Sales Forecast In this sales forecast with applying time series methodologies the company Blues Inc. has some dilemma’s they need to look at and with a sales forecast it can give them a good overview of what to expect and how to prepare for any losses or new ideas. Myra here is a sales forecast of how it can be analyzed and what to look for in the future for improvements. By using sales as an independent variable we are able to get a better view as to what our budget is and what the company can spend on to make a little more profit each quarter or year. The advertising budget will be a little bit more expensive but the return on investment will be greater than it was the year before. The fluctuations in the denim market are promising, a lot of people love to wear denim but there is a period where the sales do drop but they pick back up after the third year of being lower than usual. By looking into the future and using past forecasts the company Blues Inc. will be able to stay on top and grab a piece of the pie so to speak. By using a quarterly forecast we can find out in what month’s people aren’t buying denim and how much they are buying.
Advertising Budget and Quarterly Forecast Going into any business there are going to be ups and downs. By looking at similar businesses forecasts and using that as a basis to know how much product the business needs to be profitable we can make an educated decision in what the business needs and what it doesn’t need. Our advertising budget is not where it should be but by finding businesses that will work with us Blues Inc can and will be a profitable denim company. If our advertising budget allows us to spend a more money then we can find other things to use that money. There are many ways to find affordable advertising agencies that will work with the company so everyone is making some kind of profit. Nevertheless, by being more profitable and organized a Blues Inc. uses a quarterly forecast to see when the best times are to have sales and when the company can sell there best denim. By using a quarterly forecast Blues Inc. can look ahead towards the future and prepare for when the slow months are coming and make sure they are still profitable when they come out of this slump. Blues Inc. is a profitable company and will be around for many years as long as they keep using their quarterly forecasts and expect the worst every year. When a company starts becoming profitable they can lose sight of what they need to do next and then that company can be in a slump for many years or they might go bankrupt. By watching what they spend their money on and how they can find products inexpensive but in good quality any company will be profitable.