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Question 1 The supplied spreadsheet contains historic sales data from a long-established consumer products company. The company's advertising budget has remained largely static over many years, though the type and nature of advertising has altered significantly over time.
Question 2. Use the data to forecast the expected sales performance for the next seven quarters, until the end of 2020, describing your analytical approach in detail. Include any graphs generated.
Question 3. Produce forecasts based on (a) advertising and (b) GDP. In your judgement, which produces the better forecast?
Question 4 Consider the future business context suggested by the economic forecasts. The company wishes to increase profitability, so that it can invest in new product development. A 20% cut in advertising spending has been proposed.
Question 5 What would be the effect on sales of cutting the advertising budget by the proposed 20%?
Question 6 In your judgement, is there scope to cut advertising by more than the 20% proposed?
(1200 Word)
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