CASE 5.2 Global Container Corporation: Creative Sales Forecasting Global Container (GC) is a large manufacturer of plas- and so on looselyoften dropping several of the items tic containers for a variety of liquids, from beverages to into the sand- or they put everything into a mesh bag. industrial fluids. Its products are marketed worldwide The divers' gear is a bit disorganized in the mesh bag, through a well-established channel of distribution. but the carrier appears to work well. The only problem Recently Maiko Sakane, Director of New Product is finding a place to put the bag once the gear is Development for GC, returned from a vacation in the removed. Bahamas with what she thought was a great new prod- Maiko believes there is unfulfilled need in the mar- uct idea. After a week of lying on the beach and watch-ketplace for a product that will help snorkelers carry ing the sights, Maiko discovered something interesting heir gear onto the beach. Therefore, she created the about snorkelers. Most of them bring their snorkeling "Snork-All," a lightweight plastic device that easily car- equipment to the beach in a rather haphazard way.ries a diver's fins, mask, knife, various gauges, an under- Either they attempt to carry their masks, fins, gauges, water camera, and related equipment. The Snork-All CHAPTER 5 - Sales Forecasting and Budgeting 147 could easily snap on to any belt or bathing suit the diver QUESTIONS is wearing. Being an expert in plastics, Maiko believes 1. How would you estimate the total market potential this product represents an opportunity for GC to diver- for Snork-All? What kind of historical data might sify its product line and expand into new markets. Once back in the States, Maiko presented her new help with this project? product idea to a somewhat disenchanted CEO and 2. How would you estimate GC's sales potential for senior management team. Several of the management Snork-All? Who from GC should be involved in team liked the idea, and so did the sales manager and developing the sales estimate? other salespeople. But management was uncertain about 3. What type of forecasting methods might work best what action to take since the company's previous expe- in developing a sales forecast for Snork-All? rience was in an entirely different industry. Manage- 4. What would you recommend that Maiko do now? ment's major concerns were the potential sales of the What other information could be used to help proposed new product. With no knowledge of total develop a better sales forecast for Snork-All? market potential, and ultimately without a sales forecast for Snork-All, GC management resisted backing the Case prepared by Susan Geringer, California State idea. While Maiko is a brilliant idea person, her exper- University, Fresno. tise in marketing planning and forecasting is limited