Sales and Financial Forecast - Essay Example

The strategy would be to use sales promotion campaigns and advertising through posters at least 5 hours per day to create awareness of the product in the upper market areas of New York. Below are a sales and expense forecast that would be expected to be incurred in selling a new cosmetic brand from a small enterprise to the upper market New York. It is expected that these products are sourced directly from the warehouse already packaged in bundles.Expense forecast.Labor- $ 500 (assuming 3 hired employees at $20 per hour for 5 hours including refreshments)Transport - $ 300 (using the company’s small truck to carry just a substantial amount)Sales promotion $ 300 (marketing and selling are different concepts and some products might be offered free to customers who meet certain criteria as a sales promotion strategy, including posters for advertising)Packaging and other services $ 100 (after-sales services and packaging the cosmetics after a customer makes the purchases).

Total expected expenses- $ 1,200 in a 5 hours sales shift.Assuming that the sales will be carried out 5 days per week this will add up to 20 days per month. In 12 months= 1,200 * 12 = $ 14,400Expected salesThe four Ps in the marketing mix will affect sales. With the 3 well-trained employees in sales and noting that the upper New York residents and visitors have a high purchasing power and that the sales will increase with time as customers have the awareness of the new cosmetic product:Each cosmetic would cost an average of $ 20Each employee would sell an average of about 10 units per hour20 * 10= $ 200 per hour per employee (average) In one day = $ 1000 average salesIn 20 days per month =$ 20,000In one year expected sales will be an average of $240,000