PROJECT

DEMAND FORECASTING BY
MARUTI SUZUKI

SUBMITTED BY:
AMIT KUMAR-911
AYUSHI SHARMA-921
CHAMAN RAI-925
NEHA AGARWAL-946
DEMAND FORECASTING
Demand Forecasting is the
activity of estimating the
quantity of a product or service
that consumers will purchase.
 Why demand forecasting is
done
 Purchasing required amount of raw materials.
 Determining appropriate price policy
 Setting sales targets and establishing controls and
incentives.
 Evolving a suitable advertising and promotional campaign.
 Forecasting short term financial requirements.
 Contd…

 Planning of a new unit or expansion of an

existing unit.
 Planning long term financial
requirements.
 Planning man-power requirements.
 Appropriate production scheduling.
Factors affecting demand
forecasting
1. Geography
-Different states: People have different
choice for different models, so accordingly
demand is forecasted keeping in mind the
interest of the customers
for eg. Maruti swift was not successful in
uttar pradesh because of it’s shape,where as
in other states it was a big success.
 contd….
Even factors like colour play an
important role in influencing
demand.People in South
India avoid black colour cars whereas
in North India it is demanded.
 Contd..
2. Time Period
-festive seasons

-marriage season

-seasonal factors
3. Product level: Different
variants of a car have different
demands
for eg. People who travel more,
prefer diesel models of different
cars over the petrol version
 Contd.
4. Economic environment: various
factors such as GDP, inflation and deflation
play an important role.

5. Market share
 Demand forecasting
techniques
 Survey of buyers intentions
 Hunch method or Expert opinion
 Delphi method
 Naïve model
 Controlled experiments
 Judgemental approach
 Economic indicators
 Analysis of time series and trend
projection
 Smoothing techniques
 How demand
forecasting is done by
Maruti
 Survey of buyer’s intentions

-gives an insight into what customer’s

want and have the willingness to buy
-respondents may not give realistic
and rational responses.
 SURVEY IS DONE TO……

 To estimate what proportion of the

population will ultimately buy their
car, they estimate what proportion of
the population:
 1. wants to buy a car
 2. has the income to pay
 3. is interested in buying the car
which the company has for sale.
 Hunch method/Expert
opinion
 Involves field experts like Dealers
-Provide information regarding different
enquiries made by people about different cars.
(conversion rate- 20%)
-maintain database of past customers
-number of car booked in advance
Based on these send a demand for cars to Maruti
Suzuki.
 EXPERT OPINION
 Maruti gathers information from
industry experts about where the
market is headed
 advantage of this method is that the
information comes from the sources
most involved with the market
 PAST SALES ANALYSIS
 It is done by colllecting the past sales
recorded in different region by Maruti
all over india.
- different statistical analytical test
are performed to forecast the
demand for future.
 POS SYSTEM
Maruti uses a software called
POS(Point on sale) system.

-It contains all the database

maintained by Maruti.
-with the help of this software they
forecast demand.
 FINALLY………
Demand forecasted using past sales
analysis and survey done by Maruti are
compared with demand forecasted by dealers
from all over India.

-If the demand forecasted varies by 5-10%

more or less, production is carried out
accordingly.
If variation is large, estimation is
reconsidered.