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Lets Go Aero Case

Autor:   •  October 10, 2016  •  Book/Movie Report  •  1,676 Words (7 Pages)  •  1,438 Views

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Introduction

Let’s Go Aero Travel Inc. is a manufacturer of travel trailers that are light enough to be pulled by mid-sized cars. Initially, it was targeted for young families and retirees. It offers family an outdoor vacation or trip for a low cost.  With the baby boomers getting older day by day, the number of retirees will also increase, thereby increase their sales. Also, the camping recently moved from number 7 to number 6 on the list of top 10 leisure activities. The company is expecting growth in sales and revenue and is incorporating a new model of the organization into the teaching of budgeting.

In order to meet the needs of         senior market the company must address the following:

  • Independence and Control
  • Intellectual simulation and self-expression
  • Security and Peace of Mind
  • Quality and Value

Validity and Reasonableness of Let's Go’s sales projections

As we can see from the below table, the actual increase in sales is varying over the years, whereas projected increase in sales is 20 percent. Following are the points:

  • Different weather conditions like hurricane seasons, flooding could affect travel trailer industry business but Let’s Go’s President Mr. Newman hoping that these problems will be mitigated.
  • The population of Baby boomers who will retire in the projected years will increase significantly, hence increase in sales.
  • The company ensures not to lose any sales opportunity by having extra inventory on hand at end of each month.

So with consideration of the above-mentioned points, a projection made by the company are valid and reasonable.

Year

Sales

% increase in Sales

2005

13765

2006

14880

8.10%

2007

15991

7.47%

2008

17809

11.37%

2009

19634

10.25%

2010

23322

18.78%

2011

28000

20.06%

2012

33600

20.00%

2013

40320

20.00%

2014

48384

20.00%

2015

58060

20.00%

...

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