Merchandising Management Sales Phasing - Assignment Example

Demand Forecasting: The product firms need to know thoroughly the exact meaning of the terminology – “market demand.” This report seeks to illustratedifferent methodologies adopted for assessing market demand. This is intended to assist the product in-charge to know competently and authoritatively about the concept of market demand and its applications in the modern competitive sales environments. As a function of continuous planning and product determination, the product firms make out numerous market predictions and forecasts based on factual data. The demand can be assessed from six separate product differentiations. These are: product item, product form, product line, company turnover, industry turnover and national turnover. There are five spatial positions – customers, territory, region, country and global. There are also three time levels such as short-range, medium range and long range. Pricing strategy of any product firm and its marketing policies will largely depend on the above factors. Each type of demand assessment and estimation meets a particular need or purpose. Normally, short-range demand forecasts are made to estimate the quantum of raw material inventories needed and for planning production and scheduling the need for funds for carrying out short run operations. “The companys multi-dimensional approach to forecasting gives users the ability to forecast demand at multiple levels within their organizational structures. The long-range product forecasts are carried out to evolve strategies in order to increase/decrease their long-term product marketing plans.” (IMA Visual Planning Suit by Inventory Management Associates. 2003). Demand measurement: The field of demand measurement is filled with a number of abstruse terminologies. The executives of the company talk about forecasts, estimates, projections, targets and budgets, and in the today’s world, many of these terms are superfluous. The major concepts of demand measurement are market demand and company demand. Within each, we differentiate between demand function, forecast and potential. Market Demand: In assessing the marketing scope the first step is to assess the total demand of the market. Though it is not an easy task, the definition would add further light to it: “Market demand for a product is the total quantum of sales generated that would be purchased by a particular clientele in a specific geographical area within a defined timeframe relating to a given marketing environment under a specified marketing programme.” Thus market demand requires specifying how the product is specified , whether demand is measured in a quantum or financial method, whether purchased means the volume ordered, dispatched or paid, for the assumptions made about the marketing environments, and about the marketing programmes and so on. The significant factor about total market demand is that, it varies according to market conditions. Because of this, it can be called the market demand function or response function. Sales Phasing and % Mix Information and Calculation of Mixes for 2006, Forecast mix for 2007 and Proposed Sales and mix for 2008. Name To complete To complete To complete To complete To complete wks Proposed sales 2008 Proposed mix% 2008 % var to LY Forecast Total sales 2007 Forecast %mix 2007 Actual sales 2006 Actual %mix 2006 Spring summer 2006 1 1340 ref sch :3 10% 1217.9 ref.sch 2 1121.7 ref.sch.1 Winter sale 20% off 2 217 5% 197.3 1098.2 3 1527 12% 1363.1 1244.7 Valentines day 4 1408 5% 1340.1 1230.1 Half term and 5 1541 10% 1401.3 1280.1 Loyalty card event 6 1454 5% 1385.4 1274.2 7 1576 10% 1433.0 1311.5 Loyalty card event 8 1867 16% 16099.7 1417.7 Mothers day event 9 1894 2% 1562.4 1374.3 10 1587 5% 1512.1 1349.4 11 1627 4% 1564.4 1394.4 12 2110 10% 1919.1 1727.5 Mid season event 13 2166 15% 1884.4 1686.8 Mid season event 14 2089 12% 1866.8 1672.9 Mid season event 15 1701 4% 1636.0 1475.5 16 1859 6% 1754.2 1589.7 17 1689 4% 1624.4 1466.5 18 2865 8% 2652.9 2397.8 Bank holiday offers 19 1547 3% 1502.4 1356.7 20 1686 5% 1605.7 1451.4 21 1820 15% 1583.4 1428.8 Fathers day 22 3097 4% 2977.9 2683.4 23 2330 3% 2261.2 2045.4 24 2177 5% 2073.6 1871.4 Summer sale 25 1883 3% 1829.4 1642.6 Summer sale 26 2048 2% 2002.2 1790.5 Summer sale total 47,105m 44,760.2m 40,384.0m Schedule 1: Product mix for the year 2006: 1st Week: Winter sale 20 % off Product Mix: ₤ Assumed ratio: (25:25:15:15; 10:10) Scarves 280 Leather products 280 Jewellery 169 Lingerie’s 169 Sunglasses 112 Swimwear: 112 Total 1122 2. Off- season Week Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 163 Leather products 220 Jewellery 275 Lingerie 220 Sunglasses 110 Swimwear: 110 Total 1098 3rd week Valentine’s Day Product Mix: ₤ Assumed ratio: (20: 20: 30:10:10:10) Scarves 250 Leather products 250 Jewellery 370 Lingerie 125 Sunglasses 125 Swimwear: 125 Total 1245 4. Half Term: Product Mix: ₤ Assumed ratio: (22: 14: 30:12:14: 8) Scarves 288 Leather products 170 Jewellery 369 Lingerie 147 Sunglasses 170 Swimwear: 96 Total 1230 5. Loyalty card event: Product Mix: ₤ Assumed ratio: (10:20:32:15:15:8) Scarves 128 Leather products 256 Jewellery 414 Lingerie 192 Sunglasses 192 Swimwear: 100 Total 1280 6. Off season: Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 194 Leather products 254 Jewellery 318 Lingerie 254 Sunglasses 127 Swimwear: 127 Total 1274 7. Loyalty season: Product Mix: ₤ Assumed ratio: (10:20:32:15:15:8) Scarves 131 Leather products 262 Jewellery 419 Lingerie 198 Sunglasses 198 Swimwear: 104 Total 1312 8. Mothers’ day: Product Mix: ₤ Assumed ratio: (30:20:30:10:5:5) Scarves 426 Leather products 284 Jewellery 426 Lingerie 142 Sunglasses 70 Swimwear: 70 Total 1418 9. Off season: Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 205 Leather products 275 Jewellery 343 Lingerie 275 Sunglasses 138 Swimwear: 138 Total 1374 10. Off season: Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 203 Leather products 270 Jewellery 336 Lingerie 270 Sunglasses 135 Swimwear: 135 Total 1349 11. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 205 Leather products 275 Jewellery 343 Lingerie’s 275 Sunglasses 138 Swimwear: 138 Total 1374 12. Mid -season Product Mix: ₤ Assumed ratio: (32:22:15:15:10:6) Scarves 550 Leather products 380 Jewellery 260 Lingerie 260 Sunglasses 173 Swimwear: 102 Total 1727 13. Mid -season Product Mix: ₤ Assumed ratio: (32:22:15:15:10:6 ) Scarves 539 Leather products 371 Jewellery 253 Lingerie 253 Sunglasses 169 Swimwear: 102 Total 1687 14. Mid -season Product Mix: ₤ Assumed ratio: (32:22:15:15:10:6) Scarves 537 Leather products 369 Jewellery 251 Lingerie 251 Sunglasses 167 Swimwear: 98 Total 1673 15. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 220 Leather products 295 Jewellery 369 Lingerie 296 Sunglasses 148 Swimwear: 148 Total 1476 16. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 238 Leather products 318 Jewellery 398 Lingerie’s 318 Sunglasses 159 Swimwear: 159 Total 1590 17. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 220 Leather products 294 Jewellery 364 Lingerie’s 295 Sunglasses 147 Swimwear: 147 Total 1467 18. Bank Holiday Product Mix: ₤ Assumed ratio: (10:25:25:15:10:15) Scarves 240 Leather products 600 Jewellery 600 Lingerie’s 360 Sunglasses 240 Swimwear: 358 Total 2398 19. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 204 Leather products 270 Jewellery 341 Lingerie’s 270 Sunglasses 136 Swimwear: 136 Total 1357 20. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 217 Leather products 290 Jewellery 364 Lingerie’s 290 Sunglasses 145 Swimwear: 145 Total 1451 21. Father’s day Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 217 Leather products 290 Jewellery 364 Lingerie’s 290 Sunglasses 145 Swimwear: 145 Total 1451 22. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 403 Leather products 537 Jewellery 670 Lingerie’s 537 Sunglasses 268 Swimwear: 268 Total 2683 23. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 306 Leather products 409 Jewellery 511 Lingerie’s 409 Sunglasses 205 Swimwear: 205 Total 2045 24. Summer season. Product Mix: ₤ Assumed ratio: (20:10:15:20:15:20) Scarves 374 Leather products 187 Jewellery 281 Lingerie’s 374 Sunglasses 281 Swimwear: 374 Total 1871 25. Summer season. Product Mix: ₤ Assumed ratio: (20:10:15:20:15:20) Scarves 329 Leather products 164 Jewellery 246 Lingerie’s 329 Sunglasses 246 Swimwear: 329 Total 1643 26. Summer season. Product Mix: ₤ Assumed ratio: (20:10:15:20:15:20) Scarves 358 Leather products 179 Jewellery 269 Lingerie’s 358 Sunglasses 269 Swimwear: 358 Total 1791 Schedule 2 : Product mix For the year 2007. 1st Week : Winter sale 20 % off: Product Mix: ₤ Assumed ratio: (25:25:15:15; 10:10) Scarves 304 Leather products 304 Jewellery 183 Lingerie’s 183 Sunglasses 122 Swimwear: 122 Total 1218 2. Off- season Week Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 30 Leather products 40 Jewellery 47 Lingerie’s 40 Sunglasses 20 Swimwear: 20 Total 197 3rd week Valentine’s day Product Mix: ₤ Assumed ratio: (20: 20: 30:10:10:10) Scarves 272 Leather products 272 Jewellery 408 Lingerie’s 137 Sunglasses 137 Swimwear: 137 Total 1363 4. Half Term: Product Mix: ₤ Assumed ratio: (22 : 14 : 30:12:14: 8) Scarves 294 Leather products 187 Jewellery 403 Lingerie’s 161 Sunglasses 188 Swimwear: 107 Total 1340 5. Loyalty card event: Product Mix: ₤ Assumed ratio: (10:20:32:15:15:8) Scarves 140 Leather products 280 Jewellery 448 Lingerie’s 210 Sunglasses 210 Swimwear: 113 Total 1401 6. Off season : Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 207 Leather products 277 Jewellery 346 Lingerie’s 277 Sunglasses 139 Swimwear: 139 Total 1385 7. Loyalty season: Product Mix: ₤ Assumed ratio: (10:20:32:15:15:8) Scarves 144 Leather products 287 Jewellery 459 Lingerie’s 215 Sunglasses 215 Swimwear: 113 Total 1433 8. Mothers’ day : Product Mix: ₤ Assumed ratio: (30:20:30:10:5:5) Scarves 482 Leather products 322 Jewellery 483 Lingerie’s 161 Sunglasses 81 Swimwear: 81 Total 1610 9. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 234 Leather products 314 Jewellery 390 Lingerie’s 314 Sunglasses 156 Swimwear: 156 Total 1562 10. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 226 Leather products 302 Jewellery 378 Lingerie’s 302 Sunglasses 152 Swimwear: 152 Total 1512 11. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 234 Leather products 313 Jewellery 392 Lingerie’s 313 Sunglasses 156 Swimwear: 156 Total 1564 12. Mid -season Product Mix: ₤ Assumed ratio: (32:22:15:15:10:6) Scarves 614 Leather products 422 Jewellery 287 Lingerie’s 287 Sunglasses 192 Swimwear: 117 Total 1919 13. Mid -season Product Mix: ₤ Assumed ratio: (32:22:15:15:10:6) Scarves 603 Leather products 414 Jewellery 283 Lingerie’s 283 Sunglasses 188 Swimwear: 113 Total 1884 14. Mid -season Product Mix: ₤ Assumed ratio: (32 :22:15:15:10:6 ) Scarves 597 Leather products 411 Jewellery 280 Lingerie’s 280 Sunglasses 186 Swimwear: 112 Total 1866 15. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 244 Leather products 328 Jewellery 408 Lingerie’s 328 Sunglasses 164 Swimwear: 164 Total 1636 16. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 264 Leather products 351 Jewellery 439 Lingerie’s 350 Sunglasses 175 Swimwear: 175 Total 1754 17. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 244 Leather products 325 Jewellery 407 Lingerie’s 324 Sunglasses 162 Swimwear: 162 Total 1624 18. Bank Holiday Product Mix: ₤ Assumed ratio: (10:25:25:15:10:15) Scarves 266 Leather products 663 Jewellery 663 Lingerie’s 398 Sunglasses 266 Swimwear: 397 Total 2653 19. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 225 Leather products 301 Jewellery 375 Lingerie’s 301 Sunglasses 150 Swimwear: 150 Total 1502 20. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 240 Leather products 321 Jewellery 401 Lingerie’s 321 Sunglasses 161 Swimwear: 161 Total 1605 21. Father’s day Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 237 Leather products 316 Jewellery 396 Lingerie’s 316 Sunglasses 159 Swimwear: 159 Total 1583 22. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 446 Leather products 595 Jewellery 745 Lingerie’s 595 Sunglasses 298 Swimwear: 298 Total 2977 23. Off season Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 340 Leather products 452 Jewellery 565 Lingerie’s 452 Sunglasses 226 Swimwear: 226 Total 2261 24. Summer season. Product Mix: ₤ Assumed ratio: (20:10:15:20:15:20) Scarves 415 Leather products 207 Jewellery 311 Lingerie’s 415 Sunglasses 311 Swimwear: 415 Total 2074 25. Summer season. Product Mix: ₤ Assumed ratio: (20:10:15:20:15:20) Scarves 365 Leather products 184 Jewellery 275 Lingerie’s 365 Sunglasses 275 Swimwear: 365 Total 1829 26. Summer season. Product Mix: ₤ Assumed ratio: (20:10:15:20:15:20) Scarves 400 Leather products 200 Jewellery 301 Lingerie’s 400 Sunglasses 301 Swimwear: 400 Total 2002 Schedule 3 Proposed Product mix For the year 2008. 1st Week: Winter sale 20 % off: Estimated 10% growth over last year Product Mix: ₤ Assumed ratio: (20:25:15:20; 10:10) Scarves 268 Leather products 335 Jewellery 201 Lingerie’s 268 Sunglasses 134 Swimwear: 134 Total 1340 2. Off- season Week Estimated sales growth 5%. Product Mix: ₤ Assumed ratio: (20:25:20:15:10:10) Scarves 43 Leather products 54 Jewellery 43 Lingerie’s 33 Sunglasses 22 Swimwear: 22 Total 217 3rd week Valentine’s day Estimated sales growth 12% Product Mix: ₤ Assumed ratio: (15:15: 40:10:10:10) Scarves 229 Leather products 229 Jewellery 610 Lingerie’s 153 Sunglasses 153 Swimwear: 153 Total 1527 4. Half Term: Estimated sales growth 5%. Product Mix: ₤ Assumed ratio: (20: 16: 30:12:14: 8) Scarves 280 Leather products 225 Jewellery 422 Lingerie’s 170 Sunglasses 198 Swimwear: 113 Total 1408 5. Loyalty card event: Estimated sales growth 10% Product Mix: ₤ Assumed ratio: (10:25:30:15:10:10) Scarves 154 Leather products 386 Jewellery 462 Lingerie’s 231 Sunglasses 154 Swimwear: 154 Total 1541 6. Off season: Estimated sales growth 5%. Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 219 Leather products 290 Jewellery 363 Lingerie’s 290 Sunglasses 146 Swimwear: 146 Total 1454 7. Loyalty season: Estimated sales growth 10%. Product Mix: ₤ Assumed ratio: (10:20:32:15:15:8) Scarves 157 Leather products 315 Jewellery 505 Lingerie’s 236 Sunglasses 236 Swimwear: 127 Total 1576 8. Mothers’ day: Estimated sales growth 16% Product Mix: ₤ Assumed ratio: (30:20:30:10:5:5) Scarves 560 Leather products 374 Jewellery 560 Lingerie’s 187 Sunglasses 93 Swimwear: 93 Total 1867 9. Off season Estimated sales growth 2% Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 285 Leather products 379 Jewellery 474 Lingerie’s 378 Sunglasses 189 Swimwear: 189 Total 1894 10. Off season Estimated sales growth 5%. Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 238 Leather products 317 Jewellery 397 Lingerie’s 317 Sunglasses 159 Swimwear: 159 Total 1587 11. Off season Estimated sales growth 4% Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 244 Leather products 325 Jewellery 407 Lingerie’s 325 Sunglasses 163 Swimwear: 163 Total 1627 12. Mid -season Estimated sales growth 10% Product Mix: ₤ Assumed ratio: (32:22:15:15:10:6) Scarves 675 Leather products 464 Jewellery 317 Lingerie’s 317 Sunglasses 211 Swimwear: 126 Total 2110 13. Mid -season Estimated sales growth 15% Product Mix: ₤ Assumed ratio: (32:20:15:15:12:6) Scarves 694 Leather products 434 Jewellery 324 Lingerie’s 324 Sunglasses 260 Swimwear: 130 Total 2166 14. Mid -season Estimated growth rate 12 % Product Mix: ₤ Assumed ratio: (30:24:15:15:10:6) Scarves 626 Leather products 502 Jewellery 313 Lingerie’s 313 Sunglasses 209 Swimwear: 126 Total 2089 15. Off season: estimated growth rate @ 4% Product Mix: ₤ Assumed ratio: (15:15:30:20:10:10) Scarves 255 Leather products 255 Jewellery 511 Lingerie’s 340 Sunglasses 170 Swimwear: 170 Total 1701 16. Off season: Proposed growth rate @ 6 % Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 279 Leather products 372 Jewellery 466 Lingerie’s 370 Sunglasses 186 Swimwear: 186 Total 1859 17. Off season Proposed growth rate of 4% Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 253 Leather products 338 Jewellery 422 Lingerie’s 338 Sunglasses 169 Swimwear: 169 Total 1689 18. Bank Holiday: Proposed rate of growth @8% Product Mix: ₤ Assumed ratio: (10:20:20:15:15:20) Scarves 286 Leather products 573 Jewellery 573 Lingerie’s 430 Sunglasses 431 Swimwear: 572 Total 2865 19. Off season: Proposed rate of growth @ 3% Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 232 Leather products 310 Jewellery 387 Lingerie’s 310 Sunglasses 155 Swimwear: 155 Total 1547 20. Off season: Proposed rate of growth @ 5% Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 252 Leather products 336 Jewellery 422 Lingerie’s 338 Sunglasses 169 Swimwear: 169 Total 1686 21. Father’s day: Proposed rate of growth @15% Product Mix: ₤ Assumed ratio: (15:20:20:20:15:10) Scarves 273 Leather products 364 Jewellery 364 Lingerie’s 364 Sunglasses 273 Swimwear: 182 Total 1820 22. Off season Proposed rate of growth @ 4% Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 465 Leather products 620 Jewellery 772 Lingerie’s 620 Sunglasses 310 Swimwear: 310 Total 3097 23. Off season: Proposed rate of growth @3% Product Mix: ₤ Assumed ratio: (15:20:25:20:10:10) Scarves 350 Leather products 466 Jewellery 582 Lingerie’s 466 Sunglasses 233 Swimwear: 233 Total 2330 24. Summer season. Proposed rate of growth @ 5% Product Mix: ₤ Assumed ratio: (14:10:15:20:18:23) Scarves 305 Leather products 218 Jewellery 327 Lingerie’s 435 Sunglasses 392 Swimwear: 500 Total 2177 25. Summer season Proposed rate of growth @ 3% Product Mix: ₤ Assumed ratio: (15:15:10:10:30:20) Scarves 283 Leather products 283 Jewellery 188 Lingerie’s 188 Sunglasses 565 Swimwear: 376 Total 1883 26. Summer season. Proposed rate of growth @ 2% Product Mix: ₤ Assumed ratio: (20:10:15:20:15:20) Scarves 408 Leather products 204 Jewellery 306 Lingerie’s 408 Sunglasses 306 Swimwear: 408 Total 2042 Works Cited IMA Visual Planning Suit by Inventory Management Associates. (30 Dec 2003). Manufacturing Business Technology. Retrieved July 7, 2007 from http://softwarefinder.mbtmag.com/software/125-8994/Demand-Management/Inventory-Management-Associates-IMA-Visual-Planning-Suite.html Read More