Question

Research forecasting and demand. As a regional manager of 13 sporting goods stores, you are thinking about expanding the number of outlets in your area. How will you forecast demand and not sales? What types of forecasts would you want to create in order to support your decision? Make sure you have read the specific requirements for your original posting and your subsequent peer responses.

Answer 1

Research forecasting and demand

Forecasting the demand for a particular product would depend upon the factors such as the price of a product, affordability of a consumer, availability of the substitutes for the product etc.,

Demand for the sporting goods

As a regional manager of a sporting good store, I will consider the following factors which would greatly affect the demand for sporting goods:

• Demand for a product in a particular area: Before even deciding upon the expansion of outlets in other areas, I would first check the demand for the sporting goods in that area.
• Pricing of products: If the price of a product is too high, the buyers would prefer to forego the product until the price of the product decreases if they do not require the product at that point of time.
• Availability of substitutes : If the price of a product is on the higher end. the consumer would prefer to buy a cheaper product which is available in the market and thus the consumer would like to compromise about the quality of the product.
• Personal choice: It all depends upon the motivation of a person to practise a particular sporting profession that determines the demand for sporting goods. If the consumers in a particular area does not prefer to choose sports, then the demand for the sporting goods would be less and so I would not prefer opening an outlet in that area.
• Affordability or personal riches of the consumer: As far as the demand for sporting goods are concerned, one major factor that would determine the demand would be the affordability of a consumer or the strata of a person. If a person is not rich enough to buy a particular sporting goods for example., regular joggers or athletes would prefer sporting shoes, skaters would prefer skating wheels and helmets etc.,then the demand for the sporting goods would eventually be less. Not everyone would need these products or can afford to but these products.

Therefore I would consider to expand my outlet for sporting goods only if the above factors are met or if there are more sports lovers in a particular area.