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Sales forecasting - case study


Despite a full range of focus group testing the new ice cream failed to take-off and sales were disappointingly low. Lemon flavour had been tested amongst adults and the price point established. However, young people had not rushed to buy the product and with Autumn approaching the marketing manager was concerned that the original forecasts were wildly optimistic. He had spent his marketing budget on expensive adverts for both TV and the national press, but had not foreseen the introduction of a new fruity range by their major rival.

Unless things improved the product line was doomed and so probably was his career with the largest makers of ice cream in the country.


Question 1

Define the terms:

  • focus group
  • marketing budget

Question 2

Explain why the market research may have been inaccurate.

Question 3

Identify four factors that might have led to the disappointing sales.

Question 3

Discuss how the marketing mix may be adapted if the firm decides to re-launch the product.