May Va Ltd have conducted a trending analysis to forecast the company’s budget. A trending analysis report discusses the trends that are currently occurring on the market in terms of services or product demands from customers.
The chart below demonstrates that May Va (Chinese Foods Sales) are fluctuating by (+/-) 17% over the past year.
The trends report reveals that the market is headed up from last years average, as May Va have made budget adjustments to suit / capitalise on the trends of the industry and market by increasing it advertisement allocation. See:
- Profit & loss spreadsheet
- Cash Flow forecast
- Break Even Chart
The trend report may reveal that the company’s top selling product may fade in popularity over the next year, so executives may alter the budget in terms of product development.
Sales Patterns
Sales patterns are another method used by company owners to forecast the budget for a business. For example, a company’s sales report may reveal that some of the products in the existing product line sell better than others. The products that are not selling well may be costing the business money in terms of productivity and labor fees. If the sales patterns are not improving over the period of several months, executives may use this information to forecast the budget for the business. For example, the budget may improve if the products not currently selling are cut from the product line.
Seasonal Forecasting on Market Demands
Some products or services sell well during seasonal periods. May Va executives' have monitored seasonal sales - see seasonalitiy chart - and use predictions to focus marketing and other resources. Satisfying consumer demands before the product or service becomes a high-demand item is another way of forecasting for a stable budget.
Key seasonal factors are:
- Natural after Christmas downturn
- School holidays
- Autum time adjustment / onset of winter.
All these factors aid judicious use of resources.
