A-Z Popular Blog S&OP Search »

5 Examples of Demand Forecasting

 , updated on
Demand forecasting is the practice of predicting demand in the market for a product or service. The following are illustrative examples.

Historical Demand Analysis

Predictions based on historical sales patterns and a set of assumptions. For example, an ice cream company that expects summer ice cream sales to be 10% higher than last summer because they have increased their distribution to more locations.

Strategy Based Forecasts

In the short term, demand greatly depends on your pricing, distribution and promotions. As such, strategy can drive demand. For example, a firm that is launching a new ice cream product that is determined to achieve 10% market penetration whereby they will use pricing and promotion to achieve this target.

Market Research

If you lack historical sales data that you expect to be comparable to future results, you can conduct market and competitive research to forecast demand. For example, a new hotel might attempt to determine the occupancy rate of competitors in the same area in each season to arrive at a reasonable forecast for first year sales.

Sales Pipeline

If you have a long sales cycle, you may predict future demand by looking at your sales pipeline and evaluating the percentage of leads and opportunities that are likely to progress to future sales.

Expert Opinion

Demand forecasting may rely on the opinion of various experts. For example, a house builder that talks to sales teams, bankers, real estate executives and other industry insiders to predict the demand for houses in the second half of a fiscal year.


In a business context, demand is equivalent to the sales that can be achieved if you have the supply. In large firms, demand and supply are coordinated in a critical meeting known as sales and operations planning.
Overview: Demand Forecasting
The practice of predicting future market demand for a product or service.
Production and marketing planning
Related Techniques
Next: Sales and Operations Planning

Demand Forecasting

This is the complete list of articles we have written about demand forecasting.
Competitive Analysis
Demand Forecasting
Market Research
Marketing Analysis
Sales Analysis
Sales Pipeline
If you enjoyed this page, please consider bookmarking Simplicable.


A definition of S&OP with an example.

Decision Making

A list of decision making techniques.

Preference Definition

A few definitions of preference with examples.

Working Backwards

Full examples of working backwards.

Politics Examples

An overview of politics with examples.

Assumptions Examples

An overview of assumptions with examples.

Uncertainty Principle

An overview of the uncertainty principle with examples.

Sunk Costs Examples

An overview of sunk costs with examples.

Decision Goals

An overview of decision goals with examples.

Risk Decision

An overview of risk decisions with examples.

Common Sense

An overview of common sense with examples.


A general, reusable solution to a commonly occurring problem.

Pareto Analysis

An overview of pareto analysis.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map