Empower Your Business with Sales Budget Planning in UAE

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just going to give you a step-by-step guide as to how to do activity 2 which is on objectives and budgeting so the first thing that you need to do is you need to go to your individual google doc and in that google doc under your activity to objectives and budgeting i've now placed in a scenario that looks a bit like this so what this is is i've given you a particular market a particular brand and also an objective and based on that market brand and objective i'm going to show you how to actually create a budget for your for your marketing communications plan based on the percentage of sales budgeting method so the first things first is you just need to have a look at what market that is what the brand is so for me it's sunglasses and the new sunglasses brand police um we'll have a look at the objective in a minute we'll need to use that to sort of work out um what our projected uh targets are so what i'm going to do is actually really the the budget is going to be down here in question six but i've given you a step-by-step guide here to fill in these bits of information or to calculate these bits of information so that it's really easy to calculate what your budget is down here so the first thing that we actually need to do because i'm asking you questions that require information first like what's the total size of the market value of the sunglasses market in both 2020 and 2022 what's the percentage share of your brand in 2020 now you don't have that information already so um what i'm going to do as well as showing you how to calculate this is i'm going to show you where to find that information in a fantastic database called euromonitor if you haven't used it before it's excellent it gives you information on brand share market data analysis it gives you analysis of consumers lifestyles countries a whole bunch of different things and if you haven't used it before i highly suggest having a look at it anyway um this is going to be focused on this particular activity but i do have another youtube video that actually goes through more broadly how to look for consumer information etc so i can send that to you or you can just look on my youtube channel profclear which this video will be on so where do we start so the first thing i need to do is i need to find out this information what is the total size of the market value in dirhams in both 2020 and 2022. so what i'm going to do is i'm going to go to a library database so you should know how to get to the library by now in case you don't sure it is i generally go in through the library research databases here and from there it's called euromonitor so i go over to e and it's actually all the way down the bottom called euromonitor international's passport so i click on that and it brings me to the database okay so there's actually quite a lot of information on industry economies consumers all these kind of things but what i found to be one of the easiest way to search is just to simply click on the search button then go to this search full tree categories and topics press go then what you need to do is you need to really find your particular industry so for me i've got sunglasses so if i look down here i can see that there's an eyewear um industry so i'm gonna open up that because it could be more than sunglasses yep and i can see contact lenses etc i'm gonna click the sunglasses um tab there then what i want to do is i want to go i want it to be also within the uae so i'm going to limit it as well by the geography so next step is to go to geography i'm going to go to middle east and then click on united arab emirates and then search so what this is going to give me is information on sunglasses in particular within the uae now when you come to this search these search results it generally falls on statistics first and you can actually use some of this stuff to answer these questions like market size but i find it more useful to go to the analysis section where they actually have reports so you can see there's a country report on sunglasses in the uae it just means i'm going to get most of that information all in one and see this is updated as of july 2021 so it's really recent data okay so if i was looking at sunglasses and i need to know the market size of sunglasses in 2020 i can actually have a look at this just check that it is about sales or sunglasses that it's in dirhams here sometimes it has the volume first etc um and what i can do is i can go over to the year 2020 and i also have 2022 here i can always put that into a table and i'm going to copy that over so this is in millions of dirhams so it's going to be 769.8 million dirhams so i'm just going to copy that over and then paste that in here i'm actually going to make it into my millions of dirhams so it was eight okay so that's the total market size as of 2020 i also needed to look at total market size in 2022 now obviously they don't know this this is actually forecasted sales all right so it's forecasted for the year 2022 and there's actually another whole section you can look at as to how they forecast that but i'm going to use that as my future sales again this is in millions so if i'm looking at drms i'm going to multiply that by a million okay so you can see there's an increase expected in 2022 i think it was a dip in 2020 due to the pandemic the next thing you need to do is you need to find the ship percentage share of your brand in 2020. so again you can go back to this analysis here if you look down here you can see now there's two different things there's company share um this is the broader parent company but if you want to know about the individual brands you would actually go here down here so um i found my particular brand police and at the moment i can see that ray ban have quite a significant share but my police brand has 2.7 share of that marker so again i can go over here and say well that's what my current benchmark is of my brand share then what i want to do is i want to know what is the value in dirhams of my brand's market share in 2020 now let's think about that if i know i've got 2.7 of the share of my 2020 market then i've got 2.2 2.7 of this um many dirhams so what i need to do is i just need to do a calculation quick calculation hopefully that allows me to do that so if i clear and i'll just grab what that actually was so i'm gonna copy this times by .027 sorry it's about 2 million oops i'm not sure if i can copy that 2 million 784 600 so you might want to write that down somewhere 0 7 eight four six o okay and you can head back and that gives me the total value of my sales for police brand zero seven eight oops it's 20 million i think 20 million seven eight four six hundred okay so it's quite a decent amount of sales um but what i actually want to do is when i increase my market share by 10 by the end of 2022 so if i want to increase my market share not to 10 but by 10 what that means is um i want to actually increase my share perhaps um to an extra 10 of this so if i wanted to do that then i would multiply my 2.7 times by 1.1 so again clear that 2.7 times by 1.1 that's 10 equals 2.97 so i want to increase that to 2.97 in the next year so based on the new brand share what's the projected value of the market share at the end of 2022 so this is when i want that to have happened i want to gain 2.97 at the end of 2022. now if this is the market that we have and the value of it at 2022 and i'm going to have if i reach my target 2.97 of that market then what do i need to do i need to multiply this times 5.0297 which will end up being write that down again 29 oops 29 million six zero five zero nerums so i can easily write that in here 29 million five nine six zero five zero okay so i can see actually if i look at that now that i've actually increased my revenue um by about 9 million almost 10 million uh sorry no yeah 9 million um dirhams there across that year now in part that's because i've increased my market share but also because there's been an uptick in the sales of of um sunglasses over that time so the last thing that you need to do is you need to then work out using the percentage of sales budgeting method what my advertising budget should be now that we're starting this campaign so there's two ways to do it if you remember there's looking at past sales and basing it on past sales or there's actually looking at future sales so we've got that there we can see that my 2020 sales are going to be this and i've also got my future sales which are 20 22. so what i need to do though is i need to know what's my usual advertising to sales ratio now um i could have just a random number like 10 percent you know 5 something like that but what i'm going to get you guys to do is actually have a look at the industry um benchmarks for that we're just going to say that we're going to go by what the general industry benchmark is now one of the types of budgeting that we actually looked at was competitive parity budgeting where you're basing it based on your competitors now if i want to gain market share i would normally spend more than the industry benchmark perhaps um on that or at least more than my competitors but i'm just going to say let's leave it at that parity so it's the same so what i need to do is i need to actually look up the advertising to sales ratio for my industry now i've got a link here to a document with some research and it comes out every year of all the different advertising to sales budge ratios so i'm going to click on that but one thing that you need to do before that is you need to know what the standard industry code is for sunglasses so i've actually just given that to you as well that's what this is for here because it doesn't actually say sunglasses it'll say ophthalmic goods so if i come in here and click on this then i can actually see that there's a whole bunch of add to sales ratios now don't be too scared by this what i have a whole bunch of different industries these are giving you the revenues etc but what you need to know is what is the ad dollars as a percentage of sales right so this is advertising dollars as a percentage of sale that's that's your ad to sales ratio so if i look up my particular um standard industry name right which was optimality goods i'm going to just contr command uh f and i'm going to oops write that in oh there we go great and i can see ophthalmalic goods here and so how much is spent and this is like glasses sunglasses contact lenses and stuff and i can see that about 5.1 of sales is generally spent on advertising for that particular industry so if i know that okay and i might even put that down here so 5.1 um of of my sales are generally spent on um on advertising so if i want to use my past sales i can actually calculate that i know that my 2020 based on past results this is how much my brand's market share is worth so that's my sales amount times by 5.1 or 0.051 is going to give me how many drams i should be spending on advertising so i'm going to do that again with my calculator times by 0.051 so all up i should be spending 1 million approximately one million dirhams on my advertising if i want to keep up with industry standards for that so that's one zero six zero zero one four and i can do exactly the same thing using future sales but i just need to do that with my 2022 results in that case again times by my industry sales ratio and that's it that's all you need to do good luck