In Year 2006, Cough.com is in its second year of operations. Cough.com produces children's cough medicine. Industry sales of children's cough medicine for 2005 totaled $3 billion. For 2005, Cough.com had sales totaling $2.4 million (0.08% market share).
a. Explain how predictions of the total market and market share can be used in the forecasting process.
b. What data might you seek to enhance your sales forecast and how might such data be gathered?
c. Illustrate what-if scenarios in which market share gained by Cough.com is (1) 5% greater than and (2) 5% worse than the predicted 0.08% of the Year 2006 expected industry sales of $3.2 billion.
d. For each of these two separate scenarios, illustrate what-if analysis when total expected industry sales of $3.2 billion are (1) 10% greater than and (2) 10% worse than expected.