Financial Side Of A Good Profit

2301 Words Sep 2nd, 2016 10 Pages
interprets the research according to his or her own biased view, which skews the data gathered. Another disadvantage is that this research method is very time consuming and can last for months or even years.

Finally, it is always important to ensure the financial side of the product are understood and the product brings in a good profit also it is a good idea to set promotional prices to enable the customer to have a taster of the product. This meant Kellogg’s were required to predict a forecast of the product, Kellogg’s do this by undergoing one final test prior to the new product launch. This is called the 'In Home Usage Test’. The consumers are given the product to try for several days and this enables Kellogg 's to capture how consumers interact with the product for the first time.

As well as this being a very good technique to understand the consumer they can be negatives to this the obvious problem Kellogg’s would be facing is that markets are unpredictable. Any sales forecast, however rigorous its analysis of conditions, can be flat-out wrong. Sales forecasts fall into two basic categories, each of which has distinct disadvantages. In this case this is a qualitative forecast so sales forecasts rely on experts’ opinions to predict upcoming sales performance. Which may be detrimental to Kellogg’s because qualitative approaches is subjective therefore opinions, even well-informed ones, can be wrong, especially if they don’t take into account relevant economic data.…
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