Making accurate Sales Forecasts in the Music2Go Marketing Simulation is crucial in ensuring that you are producing enough of your products to meet customer demand, and to ensure that you are not wasting money and factory resources in unnecessarily overproducing your products.
The Sales Forecast screen in Music2Go:
How to Forecast Sales Accurately
A Sales Forecast is a prediction of the number of units you believe you can sell in the year ahead. This is calculated by using the following equation:
Sales Forecast = Estimated Market Size Next Year x Expected Percentage of Market Share
You can find the figures required for the above calculation on the Sales Information report. Excerpt from the Sales Information report:
Note: If you had Lost Sales last year then your sales forecasts may have been too low.
Maximum Sales Forecast
New Products: Your sales forecast is limited to a maximum of 2 million units in its launch year. This is a safeguard put in place by your Board of Directors to ensure you test the market before ordering large quantities of stock.
Existing Products: Your Board of Directors have also put in place a maximum sales forecast for any existing product to stop you accumulating excess stock. This upper limit is twice the number of units that you forecast last year. For example if your sales forecast was 1 million units then you would not be able to forecast more than 2 million units for the year ahead.