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Demand Forecasting

This document summarizes a student's presentation on demand forecasting for their Managerial Economics class. It discusses the importance of demand forecasting for avoiding overproduction and underproduction. It also outlines short-term and long-term objectives of demand forecasting such as formulating production policies, arranging labor and raw materials, and determining expansion plans. The document then provides a case study on Tata Motors' Nano car and its success in capturing customers from motorcycles and scooters due to its low price. It shares the results of a customer survey on the Nano's comfort, space, performance, and after-sales service.

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Ankita Bhatia
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70 views13 pages

Demand Forecasting

This document summarizes a student's presentation on demand forecasting for their Managerial Economics class. It discusses the importance of demand forecasting for avoiding overproduction and underproduction. It also outlines short-term and long-term objectives of demand forecasting such as formulating production policies, arranging labor and raw materials, and determining expansion plans. The document then provides a case study on Tata Motors' Nano car and its success in capturing customers from motorcycles and scooters due to its low price. It shares the results of a customer survey on the Nano's comfort, space, performance, and after-sales service.

Uploaded by

Ankita Bhatia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Subject- MT 408 Managerial Economics Submitted to-

Dr. Roopali Sharma


Presented by- Ankita Bhatia
Roll No.- MBA/25007/19

Date- 16-10-19
DEMAND FORECASTING
INTRODUCTION

  Demand Forecasting means predicting or estimating


the future demand for a firm’s product or products .
It is important aid in effective and efficient planning.
It is backbone of any business.
WHY TO FORECAST DEMAND?

AVOID OVERPRODUCTION

AVOID UNDERPRODUCTION
SHORT TERM OBJECTIVES
The short term objectives are as follows :
1.Formulation of Production policy : helps to overcome the
problem of over production and under production.
2. Regular Availability of Labour : helps to properly arrange
skilled and unskilled labour.
3.Regular supply of Raw Material : helps in predicting
requirement of raw material in future .
4.Arrangement of funds : enables to estimate the financial
requirements .
5. Price policy formulation : enables the management to evolve
a suitable price strategy .
Long term objectives
If the period of forecasting is more than one year then it
is termed as long term forecasting . The long term
objectives are as follows :
1.Labour requirements : helps in arranging skilled
labour .
2.Arrangement of funds : enables to arrange long term
finances on reasonable conditions.
3.To decide about Expansion :enables to plan for a new
project as well as expansion and modernisation of
existing unit
CASE STUDY(TATA NANO CAR)
INTRODUCTION
Automobile industry was only manufacturing
commercial vehicles and cars under license from
foreign companies for 4-5 decades. Progress has
been made during the last 2-3 decades to design and
develop vehicles in India. In the current fiercely
competitive market, down slide and uncertainties, all
automobile companies are trying to reduce
manufacturing costs, using innovative processes,
latest technologies and materials, but few companies
are taking the help of VE consultants/experts.
• Indian customer psyche is a complex phenomenon to
understand. Continuous efforts to gauge the
customer needs, preferences, market research and
the prevailing economic environment are important
factors for consideration to succeed in this fiercely
competitive market
• The Tata Nano is a compact city car that was
manufactured and marketed by Indian
automaker Tata Motors over a single generation,
primarily in India, as an inexpensive rear-engined
hatchback intended to appeal to current riders of
motorcycles and scooters — with a launch price of
one lakh rupees or US$2500 in the year 2008
• A survey questionnaire was sent to 300 customers to collect data
regarding their views, needs and preferences. The Survey was
restricted to early supplies of Nano basic model introduced in
2009.
• The questionnaire was designed for two categories of
respondents, namely:-
• Customers who have shifted from a two wheeled vehicle to a four
wheeled vehicle and
• customers, who had already experience of owning a four wheeled
vehicle and purchased Nano.
• Persons who were associated with Nano Sales &
Marketing/Service/Repair & Maintenance or other activities
• Nano received great praise during the Automobile
Expo-2008 at Pragati Maidan, New Delhi.
• Nano won the Indian Car of the Year 2010 award at
Business Standard Motoring Awards 2010. Nano won
the car of the year of Bloomberg UTVAutocar awards.
• Nano won the first place in 2010 Edison Awards under
transportation category.
• The company was also planning to win the TPM
Excellence Award and the British 5 Star Rating by 2014
QUESTIONS ASKED
• Do you find Nano comfortable to sit and
drive?
• Do you find it comfortable (leg space) for
passengers sitting on back seats satisfactory?
• Do you find its luggage space satisfactory?
• Do you find gear shifting smooth?
• Do you find its after sales service and warranty
clause satisfactory?
THANKYOU

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