A company’s sales forecast is the level of sales that a company expects based on a chosen marketing plan and an assumed marketing environment. The sales forecast does not establish a basis on which to decide how much should be spent on marketing. Rather, it is the result of an assumed marketing expenditure plan. [68] A sales forecast can be very helpful in creating important milestones for a business. However, it is still an educated guess. No matter what a company forecasts, it will typically make less than expected. [69]
Sales Forecast for Sigmund’s Gourmet Pasta
The first two months will be used to get the restaurant up and running. By the third month, things will get busier. Sales will gradually increase, with profitability being achieved by the beginning of the new year. [70]
Figure 8.7Sigmund’s Sales Forecast
Source: “Pasta Restaurant Marketing Plan: Sigmund’s Gourmet Pasta: Situation Analysis,” Mplans.com, accessed December 2, 2011,http://www.mplans.com/pasta_restaurant_marketing_plan/situation_analysis_fc.php. Reprinted by permission of Palo Alto Software.
Table 8.2 Sigmund’s Forecast of Sales and Direct Cost of Sales
Category
|
2011
|
2012
|
2013
|
Sales
|
Individuals
|
$103,710
|
$262,527
|
$327,424
|
Families
|
$150,304
|
$380,474
|
$474,528
|
Total sales
|
$254,014
|
$643,001
|
$801,952
|
Direct Cost of Sales
|
Individuals
|
$46,669
|
$118,137
|
$147,341
|
Families
|
$67,637
|
$171,213
|
$213,538
|
Total direct cost of sales
|
$114,306
|
$289,350
|
$360,879
|
Note: Sigmund’s separated sales on the basis of its target market, but it did not include a separate sales forecast for takeout. It should have.
|
Source: “Pasta Restaurant Marketing Plan: Sigmund’s Gourmet Pasta: Situation Analysis,” Mplans.com, accessed December 1, 2011,http://www.mplans.com/pasta_restaurant_marketing_plan/situation_analysis_fc.php.
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