ToolsTechniques of Financial business case assessment Market Sales forecasng

Toolstechniques of financial business case assessment

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Tools/Techniques of Financial business case assessment : - Market & Sales forecas'ng - ProYt & loss analysis - Breakeven analysis - ROI - Sensi'vity Analysis Forecas;ng Stages 1) Market opportuni;es 2) Revenue Poten;al 3) Preliminary sales forecast 4) Baseline volume sales forecast 5) Final sales forecast 6) Adjus;ng market plans Types of Forecasts : - Market poten'al (maximum es'mate of market volume) & Market Forecasts (reasonable es'mate) - Sales poten'al(maximum es'mate of company sales afainable) & Sales forecast (reasonable es'mate) Past Demand Data - Trends - Seasonality - Cyclical elements (varia'ons in demand due to Ructua'ons in business cycle: boom, recession, depression) - Random varia'on (natural disasters perhaps, food scarcity). Product Forecas;ng Methods - Simulated test marke'ng - Live test markets - Qualita've analysis (focus groups) - Secondary Data comparables - Best Guess Factors that InIuence New Product Pricing
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- Brand loyalty - Number of retailing outlets - Availability of subs'tutes - Consumer sensi'vity to prices - Price controls - Price elas'city. Price Forecas;ng DiQcul;es - Target users don’t know their future behaviour/needs - Poor execu'on of market research - Market dynamics and compe''on changes - Uncertain'es about marke'ng support from management (E.G. Funds) WEEK 8: BRINGING NEW PRODUCTS TO MARKET Importance of Launch: - Makes poten'al customers aware of new product and keen to try it - Product needs to get in the market in a 'mely and cost eXec've way Mistakes in Launch: - Not enough 'me allocated to planning the launch - Do not have a well-designed plan - Non-existent exper'se or resources needed to successfully launch the product - Poor and non-existent marke'ng strategy. - Failure to deYne target market - Launching too soon – Rushed launch - Poor quality product
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- InRexible launch plan - InsuKcient funding - Overes'ma'ng results - Not delega'ng tasks - Not having a crisis plan Launch Planning: - Resources to support launch, responsibili'es clear for launch ac'vi'es, including marke'ng, sales, manufacturing, engineering, Yeld service. - Technical: Tes'ng the product to meet criteria, approved, product design documenta'on completed and approved, technical data sheets prepared, user documenta'ons, opera'ons manuals and maintenance instruc'ons, engineering personnel that can assist customers if issues arise. - Sales personnel trained - Final packaging, pricing established and approved. - Press released prepared and ready to distribute - Sales and distribu'on channels established and iden'Yes - Promo'on and adver'sing plan developed - Adver'sing contracts signed by partners - Suppliers are selected - Needed materials and parts in stock and on order - Adequate personnel and capacity - Appropriate level of product is available. - Responses to frequently asked ques'ons prepared - Troubleshoo'ng guides, installa'on guides prepared 12 Step Adop;on Process: 1. Proposi'on (oXering of innova'on) 2. Afen'on catching (get no'ced) 3. Message connec'on (land the message) 4. Clear, concise message 5. Need/Desire 6. Advantage 7. Credibility (enough reason to believe) 8. Acceptable downsides 9. Findability 10. Acceptable costs 11. Product delivery
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  • Three '17
  • Marketing, new product development, Strategic business unit, Nico Li

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