Forecasting in Fmcg Industry
1. INTRODUCTION TO THE TERM PAPER
1.2 BACKGROUND
Forecasting relates to the management functions of planning, organizing and controlling. It is one of the key elements of operations management. Companies serve their customers and the society at large by producing various goods and services. The market need is continuously changing. In order to cope up with the changing demand companies must develop a good forecasting technique to determine the demand level
For this term paper, five different products from different companies, selected from the fast moving consumer goods industry, were taken as the subject of study. The products selected are of different nature in the consumer industry, which made them ideal for the term paper.
1.3 OBJECTIVES
The broad objective of this paper is to identify the forecasting techniques used by companies in the fast moving consumer goods industry (FMCG).
The specific objectives are:
To identify five products in the FMCG industry
To identify the when each organization do their forecasting, and for what period of time.
To identify the different quantitative and qualitative forecasting techniques used by the companies.
To compare the forecasting techniques of the five products.
1.4 RATIONALE
Given the volatile nature of the Bangladeshi market, it is imperative for the FMCGs to have an exhaustive forecasting system. Since the attributes of different brands are different, it would be interesting and equally educative to analyse the forecasting techniques followed by these organizations.
The report would also help entrepreneurs and prospective entrepreneurs to better understand how to forecast for different brands under different circumstances.
1.4 SCOPE
This paper aims to analyze the forecasting techniques followed by five major FMCG companies in Bangladesh. These brands include Nestle Bangladesh Limited, Reckitt Benkiser Bangladesh Limited, ACI Bangladesh Limited, Square Group, and Unilever Bangladesh Limited.
1.2 BACKGROUND
Forecasting relates to the management functions of planning, organizing and controlling. It is one of the key elements of operations management. Companies serve their customers and the society at large by producing various goods and services. The market need is continuously changing. In order to cope up with the changing demand companies must develop a good forecasting technique to determine the demand level
For this term paper, five different products from different companies, selected from the fast moving consumer goods industry, were taken as the subject of study. The products selected are of different nature in the consumer industry, which made them ideal for the term paper.
1.3 OBJECTIVES
The broad objective of this paper is to identify the forecasting techniques used by companies in the fast moving consumer goods industry (FMCG).
The specific objectives are:
To identify five products in the FMCG industry
To identify the when each organization do their forecasting, and for what period of time.
To identify the different quantitative and qualitative forecasting techniques used by the companies.
To compare the forecasting techniques of the five products.
1.4 RATIONALE
Given the volatile nature of the Bangladeshi market, it is imperative for the FMCGs to have an exhaustive forecasting system. Since the attributes of different brands are different, it would be interesting and equally educative to analyse the forecasting techniques followed by these organizations.
The report would also help entrepreneurs and prospective entrepreneurs to better understand how to forecast for different brands under different circumstances.
1.4 SCOPE
This paper aims to analyze the forecasting techniques followed by five major FMCG companies in Bangladesh. These brands include Nestle Bangladesh Limited, Reckitt Benkiser Bangladesh Limited, ACI Bangladesh Limited, Square Group, and Unilever Bangladesh Limited.