Demand Forecasting at

Done By:
Abdul Razeq Rahimi
16MBA1086
 Demand Forecasting
Demand forecasting is the scientific
and analytical estimation of demand
for a product (Service) for a
particular period of time.
It is a process of determining how
much of what product is needed
when and where.
Elements of a Effective Demand
forecast

Timely
Reliable
Accurate
Meaningful
Understandable (Simple)
Questionnaire
 Company Introduction
Nestle India Limited is an India-based company
engaged in food business.
The Company operates in the Food segment.
The Company's food business incorporates
product groups, which include milk products and
nutrition, beverages, prepared dishes and cooking
aids, and chocolate and confectionery.
Company Introduction Cont
Its milk products and nutrition include NESTLE BABY &
me, and NESTLE NESLAC.
Its beverages include coffee products, such as
NESCAFE, NESCAFE CLASSIC, NESCAFE Sunrise,
NESCAFE Cappuccino and NESCAFE GOLD
Its prepared dishes and cooking aids products include
MAGGI, MAGGI Oat Noodles, MAGGI Bhuna Masala,
MAGGI Vegetable Atta Noodles, MAGGI Nutri-licious
PAZZTA and MAGGI Sauces.
The Company's chocolate and confectionery products
include Nestle KitKat, Nestle Bar One, Nestle Alpino,
Nestle Munch, Nestle CLASSIC, Eclairs and POLO.
SWOT Analysis-Nestle
 Strengths

Established family brand.

Good customer relationship.
Diversified product variants.
Strong wide range of distribution
channel.
 Weaknesses

Not so significant presence in rural

market.
No direct market outlet.
Higher pricing than local brands.
 Opportunities

Increasing number of working youth.

High brand awareness among Indian
consumer.
Changing preference of customer of
having ketchup over curd, chutney,
etc.
Shift to rural market.
 Threats

Price war with competitors like Hienz

India, HUL, etc.
Strong presence of regional
competitors.
Increasing price of raw materials.
 Demand Forecasting at Nestle
Company

The Nestle company is using the

following methods for their demand
forecasting:

Experts Opinion Poll method

End-user Method or Consumers
Survey
 Experts Opinion Poll
method
Asking expert opinions about a
particular product in the future.
These experts predict the likely sales
of a given product in future periods
under different conditions based on
their experience.
End-user Method of Consumers
Survey:

The list of several users of the

product under forecasting is
prepared first, who are then asked
about their individual purchasing
patterns and then from such
information the complete product
demand forecast is ascertained.
 Conclusion &
Recommendations
Demand forecasting is the scientific
and analytical estimation of demand
for a product (Service) for a particular
period of time.

They should use the statistical

methods in their demand forecasting
for the accurate and long term
forecasting