Al ain dairy: managing supply and demand
Kingston Fernandez, Head of Sales, Al Ain Dairy was looking at the proposed sales plan for the next two years. He was planning a target that would exceed his current sales value. The prediction of sales volume is difficult and challenging to master for especially the 'Ultra Fresh' business. Projection are commonly made on the historic behaviour of natural market growth. By taking into consideration the present economic conditions as well as market stability it is possible to make a detailed calculation of market growth. The market expansion of reputed hypermarket chains, development of more community areas and residential complexes are also key factors that is taken into consideration when projecting sales volumes. Al Ain Dairy, a 30 year old pioneer company in the cow and camel milk category is one of the industry leaders in United Arab Emirates. The company was poised for growth as demand was exceeding production capacity and to strengthen the future production secuirty and were still operating at 100% capacity. Newer markets were being considered like Oman which meant more demand. The potential world market for camel milk alone is US $ 10 billion. How was Kingston going to accurately predict sales volumes to ensure their customers were not disappointed?
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