Nescafe and marketing planning and forecasting sales potential

Hallo Nescafe lovers,

This weak I will tell you about the market and sales potential of Nescafe coffee in the Netherlands for the year 2015. 

First of I tried to estimate the market and sales potential of Nescafe Coffee in the Netherlands in the year 2015. I used the source euromonitor for this. First of all, I found some terms about marketing and sales potential and break down, build up approach.  I found the following defination in my book called  I used my ‘marketing concepts and strategies’

Break down approach: ‘an approach that derives a company’s sales potential from the general economic forecast and the estimate of market potential’ (Sally Dibb, 2016)
Build up approach:’ An approach that measures the sales potential for a product by first calculating its market potential and then estimating what proportion of that potential the company can expect to obtain’ (Sally Dibb, 2016)
Sales potential: ‘The maximum percentage of market potential that an individual company can obtain for a specific product or service’ (Sally Dibb, 2016)
Market potential: ‘Total amount of a product that customers will purchase within a specified period of time at a specific level of industry-wide marketing activity’ (Sally Dibb, 2016)

I found a table on Euromonitor, this table showed me the breakdown % in the Netherlands in the last four years. In 2015 there was a slightly increase (0.1%) compared with 2014, the breakdown% of 2016 is not available.

(Euromonitor, 2016)

The Sales potential of 2015 was 962.100.000 million, know we have the sales potential of 2015 we can calculate the market potential of coffee in 2015. The cost price of Nescafe coffee was in 2015 €5.07 euro. The market potential of Nescafe coffee in 2015 was (921.100.000 / 5.07=) 181.676.600.  (Euromonitor, 2016) (Euromonitor, 2016)

Right now I will explain what a marketing plan is and explain why it is important to have a marketing plan.

First of all, I will explain what a marketing plan is. A marketing plan that will cover all step by step the marketing activities

A marketing plan is necessary it will give you the following advantages:

-       The hole marketing plan will guide you to your goal

-       Helps the employees to stay focused

-       You can work with deadlines and target

(Sally Dibb, 2016)

There different forecasting technique to forecast the sales potentiol for the future. I prefer to the time series analyses, I will explain why and give you some advantages and disadvantages of this forecasting technique.

Time series analyses:  A forecasting technique that uses a company’s historical sales date to discover a pattern or patterns in the company’s sales of time

Advantages:

-       You know the mistakes that is made in the last year

-       Knowledge about the last year, what they can expect this year and how to avoid the problems of last year

Disadvantages

-       It can vary compared with the consumer behavior last few years

-       Macroeconomics influences that will affect the market and sales of the year.

(Sally Dibb, 2016)

References

Euromonitor. (2016, 10 17). Nescafe. Opgehaald van http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

Euromonitor. (2016, 10 17). Nescafe breakdown. Opgehaald van http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

Euromonitor. (2016, 10 17). Price Nescafe. Opgehaald van http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/changemeasure

Sally Dibb, L. S. (2016). Marketing concepts and strategies. Cengage learning.