A presentation on demand forecasting ,explaining its meaning ,levels of demand forecasting , Techniques ,Factors , Benefits , and a small case study on Cadbury India ltd on Demand Forecasting

2. WHAT IS DEMAND ?
Desire of an
Individual for
a commodity
(x)
Ability to pay
for the
commodity
(x)
Willingness
to part with
ones income
Demand
for a
commodi
ty (x)
What is Forecasting ?
Forecasting is a
prediction or estimation
of future situation under
given conditions .

3. WHAT IS DEMAND
FORECASTING ?
Demand forecasting is the scientific and
analytical estimation of demand for a product or
service for a particular period of time .
It is the process of determining how much of
what products or service is needed when and
where .

4. Levelsof DemandForecasting
Industry
level
Macro
level
Micro
level

5. Techniques of Demand
Forecasting
1.Qualitative
Techniques
a. Expert
Opinion
Method
b. Delphi
Method
c. Survey
Method
2.Quantitative
Techniques
i. Time series
Method
ii. Regression
Analysis
iii. Trend
Series Method

6. FACTORS DETERMINING DEMAND FORECASTING
Time factor
Level of
perception
General or
Specific
forecasting
Problems &
methods of
forecasting
Classification
of goods
Knowledge of
different
marketing
conditions

7. BENEFITS OF DEMAND FORECASTING
Helps in approximating
future requirements .
Buyers needs and wants
are clearly identified.
Effective way of
assessing demand for
new firms .
Reduce stock levels and
Inventory Costs.
Early Recognition of
Market Trends .

8. DEMAND FORECASTING OF CADBURY INDIA LTD .
Time series
method.
Random
Fluctuations.
Seasonal
Variations.
Past
Behaviour of
customers.
Changing
Trends .

9. CADBURY'S DEMAND FORECASTING
 Reduce Wastage and
Accurate Production
 Data is reliable if
collected accurately.
 Helps to set target and
Meet Customer
Demand.
 Lot of Past Data
required.
 Assumes that external
Environment remains
unchanged .
 The Data can be
biased .
Advantages Disadvantages