Question

on the basis of nestle company answer the following question.

Planning, sales forecasting and budgeting application criteria:

1 strategic planning and linkage to strategic marketing
2 efficient and effective sales strategy
3 forecasting approaches and methods of sale forecasting
4 purpose and process of sales budget

Answer 1

Nestle Company was founded in the year 1867 by pharmacist Henry Nestle. The company headquarters is in Switzerland, with a large share in the world largest food company. The company is committed to maintaining the fundamentals of cultural values, environmental cleanliness, and preservation into every country they offer their quality businesses. The company always facilitates the cultural and corporate values in every country they function or operate and make establish the operations with respect to environmental values. The company operates around 194 countries globally and caters around 340,000 more employees with 340 factories worldwide.

The planning is the vital step in companies to achieve the desired goals, and the preference of the business is to allocate capital towards the value-creating investments to expand the company's core segments like food, beverage, and health based products in the market. The sales forecasting is the vision towards the future to meet the short term as well as the long term market requirement without any concerns, or with right forecasting and demand-driven planning make to channelize the business optimization in a better way.

Strategic Planning and Linkage to Strategic Marketing

Nestle values the core vision and mission statements of the company and it directly connected with the marketing strategies of the company. The marketing strategies promise the quality and genuine approach w.r.t. objectives, like the company, is always striving to bring the customer food in safe, efficient, and high quality. The companies vision itself directly connected with the marketing philosophy of the company, it meets to understand the needs of the customer every day by using the marketing strategies and selling of foods with higher quality, better standards, and adequate safety parameters.

The company’s marketing planning always associated with the marketing strategy always associated with the strength, weakness, opportunities, and threats of the product and understand the core dynamics of the product help the marketing leadership to create the plans based out on the requirement of the market place, new customer, and existing customer interests. The company has a huge grip on product diversity, distribution network, reputation, research and development, and high brand value, and acquisitions or mergers in the area of business. The strong opportunities resembles the dynamic marketing tools like considering the demand for healthier food products, broader sales channels, strong research and development outputs, and building long-term partnerships.

Efficient and Effective Sales Strategy

The sales environment of the company involves internal as well as the external environment, the rich culture inside the company to motivate the employees and it helps the company to produce better strategic plans for the growth of the company through better sales techniques. Secondly, the macro environment includes suppliers, competitors, marketing intermediaries, marketing, and customers towards the better sales pitch for the quality options. Thirdly, the microenvironment of the technological, and economic environments through aggressive pricing and promotion techniques to influence the brand on efficiency or effectiveness of sales strategy.

Forecasting Approaches and Methods of Sale Forecasting

The company is focused on the demand-driven sales forecasting in the company operations, especially while dealing with the sales. The process of estimating future sales is a very crucial and essential element in a company’s product life cycle. The methods where the business sticks through the brand are to understand the length of sales cycle forecasting, lead-driven forecasting model, opportunity stage forecasting, intuitive forecasting techniques, test-market analysis forecasting, multivariable analysis, and historical forecasting. The above methods help the company to reduce the risk and uncertain panic in the long run of business operation w.r.t. sales planning and targets.

Purpose and Process of Sales Budget

The purpose of the sales budget is to meet or plan for the future finance operations w.r.t. sales figures and control the expenditure of resources (money, facilities, raw material, and people) necessary to achieve the forecasted figures or the desired sales objective of the Nestle Company. The process helps to achieve the prescribed objectives of the sales management and marketing plans. In the company, there are certain process involved to channelize the sales budget, these are starting with updating budget assumptions, review the bottlenecks, available funding options, the step of costing points, create an efficient budget package, issue budget packages, obtain the revenue forecast plans, and obtain department level budgets for meeting the sales objectives.