Jaipuria institute of management

Sales Management and Business Development

Submitted to-Dr.Rahul Meena Sir

Group No.- 8
Submitted by- Vaibhav Dwivedi (PGFC2155)

ASSIGNMENT- To Calculate Sales Target for the given Hypothetical

Region-wise Sales Data of CEAT TYRES.

DATED- 5/4/2022

Ceat Ltd is an Indian tyre manufacturing company owned by the multinational

RPG group. It was established in 1924 in Turin, Italy & it has a presence
throughout the global market and holds a good amount of market share
throughout the globe.

It has a net income of more than 250 Crores INR and has various subsidiaries/
Child companies in various nations.

In The Guest session we were taught about how to analyse the sales target and
how to achieve maximum growth by pre-calculating sales target using
forecasting.

For the assignment we were assigned hypothetical quarterly sales data of Ceat
tyres for the year 2018 along with the region wise data of RO’s of many major
cities such as Ahmedabad, Jodhpur, Udaipur and Jaipur.

The data was given for two types of tyres that Ceat manufactures among its
wide product portfolio which were - TBB Tyres and TBR Tyres.

The sheet also Includes data about how much additional compensation or
incentive a salesman can get if he surpasses his sales target.

We were also given with the size and name of the eet. I was assigned to
calculate the target sales using forecasting method for Jaipur city Regional
o ce. I calculated the future forecast of sales target for both of the type of tyres
( TBB Tyres and TBR tyres) and also to set achievable target for sales in future
which is year 2019 according to the case. The future sales target was to be
calculated for regional o ce of Jaipur city.

The objective of the assignment was to sort and separate relevant data from the
whole source. It also required us to Use multiple di erent forecasting techniques
to calculate the forecasted sales for the year of 2019.

We Also needed to calculate The sales gures for more than past 5 years along
with one year in future which is 2019.

The methods of forecasting used by me to calculate the forecasted quarterly

sales results of 2019 were-

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 1. Simple Moving Average for 3 years

2. Simple Moving Average for 5 years

3. Exponential smoothing with the Alpha value of 0.60

4. Exponential smoothing with the Alpha value of 0.80

5. Seasonality Index Method

The steps used to Calculate the future sales target for various sales eets were-

1. Con dence percentage was 95% and outliers were also calculated with the
upper & lower bound of forecasts.

2. From all the above calculations which were done for both the types of tyres i
interpreted that Seasonality Index was the measure which had least amount of
errors from all the forecasted sales gures.

3. It was observed that the forecasts showed 10% Sales growth between actual
sales of 2018 and forecasted sales of 2019.

4. I considered the forecasts along with the upper and lower bounds to calculate
the set future sales target volume while also keeping the growth in demand for
both the type of tyres.

The set Targets will be further negotiated with the Teachers

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