# A guide on calculating Sales Forecast in Capsim Capstone Business Simulation Rounds and Example of calculating traditional segment unit’s sales forecast in round 1

It is very important for companies to calculate their sales forecast because, on that base, the company has to plan and manage its financial resources, Production Capacities, Promotional and Sales budget, and So on.

Every Capsim Capstone simulation has round 0 data which shows each competitor how many units they have sold to each segment in round 0. Basically, in round 0, sales units for each company are the same because it serves as a starting point for round 1. In Capsim Capstone, there are a total of 6 competitors which compete with each other. Their names are 1) Andrews, 2) Baldwin, 3) Chester, 4) Digby, 5) Erie, and 6) Ferris. In addition, there are total 5 segments of the market where companies compete with each other. Their names are 1) traditional Segment, 2) Low-end Segment, 3) High-end Segment, 4) performance segment, and 5) Size Segment. Each of the segments has different unit sales in round 0 and also it shows the growth of each segment. For this information, it is important to look up the capstone Courier report of the Capstone.

## Example of Round 1 Capstone Traditional Segment Units Sales Forecast:

As you can see in the picture above, in round 0, the total unit demands for the traditional segment was 7387 Units and the industry has a growth rate of 9.2%. So, the total unit demand of the industry will be in round 1= 7387*9.2% = 8067 Units. These 8067 units are the maximum demand of the segment in round 1 and each company will compete for its market share.

Now each company can see what market share they hold in traditional segments and they can assume their sales will grow with the industry. For example, if Andrew's company has sold 1000 units in round 0, in round 1, you can expect it will sell 9.2% more units than last year which equals= 1000*9.2/100=92 units. And total sales forecast for round 1 for Andrew in round 1 will be 1000+92=1092 Units.

If you are looking for help in calculating Sales forecasts for your Capstone project, You can use our Capsim help service any time. Just contact us

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