The Backcast: A Sales Performance Evaluation Tool at Coca-Cola

Future sales can normally be estimated using a variety of tools, e.g., long-range or current year sales forecasts based upon business cycle, industry, or company considerations. However, only one method is usually available to a sales manager or salesman for assessing current sales performance: comparison of the most recent (actual) sales figures to those estimated in the latest annual sales forecast. At Coca-Cola USA, it was determined that a longer-range sales performance evaluation tool was needed to supplement the conventional annual forecast in response to the question, “Are my sales growing or declining?” This new information/evaluation tool, termed the “backcast,” is described and related in reference to the management control obtained by the use of the more conventional forecast. Subsequent sections describe the use of backcasts at Coca-Cola USA and outline some possible extensions for the use of the backcast.