Kansas Sales Budget Memo Case Study

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The memo demonstrates that that the sales budget for Kansas. The goal for the sales team in Kansas is to acquire 2,000 customers for this area and achieve a $10,000,000 sales budget. The aim of the budget is to identify the potential of the market to actually attain the sales target of $10,000,000.

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In order to achieve this, the sales budget uses BPI (buying power index). BPI index is used to attain the buying potential of the consumers categorized by demographic or regions. BPI helps to identify the market factors, helps to correlate them to the potential of the area under study, and then creates a potential.

The BPI for Kansas City, MO-KS is 0.7728 and it is ranked 32 in 2009 survey.

Depending on the percentage of the disposable income in Kansas that is indicated by the BPI, the advertising expenses budget will be determined. The main aim of the project was to attain the greatest available resources to attain new customer base of 2000. The company can target at 100000 retails and if 15% of the retailers become prospects and out of these 15%, only 30% become the real consumers.

The memo therefore states that the sales forecast for the 12 months period are expected to fall short of the target in Kansas City, MO-KS. The reason being no matter how much sales promotions and advertising are adopted in the city it cannot be overlooked that the BPI in the area is low indicating a low disposable income and therefore buying power.

This would curtail any sales pitch made by the company in the region. Therefore, a proposal to lower the sales target is forwarded to gain more strategic insight into the sales forecast and budgeting.

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IvyPanda. (2022, April 7). Kansas Sales Budget Memo. https://ivypanda.com/essays/memorandum-2/

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"Kansas Sales Budget Memo." IvyPanda, 7 Apr. 2022, ivypanda.com/essays/memorandum-2/.

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IvyPanda. (2022) 'Kansas Sales Budget Memo'. 7 April.

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IvyPanda. 2022. "Kansas Sales Budget Memo." April 7, 2022. https://ivypanda.com/essays/memorandum-2/.

1. IvyPanda. "Kansas Sales Budget Memo." April 7, 2022. https://ivypanda.com/essays/memorandum-2/.


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IvyPanda. "Kansas Sales Budget Memo." April 7, 2022. https://ivypanda.com/essays/memorandum-2/.

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