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Demand Forecasting for a New Product (Eng Rec.)
Abstract
Demand Forecasting is a scientific technique to predict the likely future demand of a product. There is no exact scientific technique or tool that can be used to predict accurately the future of a product in the market. However, the combination of the existing techniques can help to predict the demand forecasting of a product. Key demand forecasting steps can be explained as below: build a collaborative effort, forecasting an initial sales volume, understanding product cannibalization impact, evaluation of raw material supply and manufacturing capacity, build granular models, combine various techniques, determination of initial product quantity and initial product distribution, sales monitoring with reforecasting, and preparation to face contingent losses.
Visit Website: Commerceya
Subscribe on Youtube: Commerceya
What is a New product?
A New product in business can be a product that has never been made or sold before. Proper market research, the study of market demand, and the requirement of product innovation give birth to the development of a new product. So, a new product can be a product innovation developed and brought to the market for the first time. It may be a completely original product or an existing product that has been modified and improved.
What is Demand Forecasting?
Demand Forecasting is a scientific technique to predict the likely future demand of a product. According to American Marketing Association, “Demand forecasting is an estimate of sales in dollars or physical units for a specified future period under a proposed marketing plan.” But demand forecasting for a new product requires specific skill, technique, and effort because the product is completely new in the market and no previous data is available about the sales. It looks complex and becomes a new challenge.
Key Demand Forecasting steps for a New Product Launch
1. Build a collaborative effort
Identify and select a handful of key people from marketing, sales, operations, and relevant technical departments to form a dedicated working team. The core team will be responsible for the development and management of the forecasting process throughout the launch period until demand planning becomes more predictable.
2. Forecasting initial sales volume - product based
The new product has no history at all for its sales forecasting. But different data sources relevant to the product demand...
Read More...
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By Sivananda PandaAbstract
Demand Forecasting is a scientific technique to predict the likely future demand of a product. There is no exact scientific technique or tool that can be used to predict accurately the future of a product in the market. However, the combination of the existing techniques can help to predict the demand forecasting of a product. Key demand forecasting steps can be explained as below: build a collaborative effort, forecasting an initial sales volume, understanding product cannibalization impact, evaluation of raw material supply and manufacturing capacity, build granular models, combine various techniques, determination of initial product quantity and initial product distribution, sales monitoring with reforecasting, and preparation to face contingent losses.
Visit Website: Commerceya
Subscribe on Youtube: Commerceya
What is a New product?
A New product in business can be a product that has never been made or sold before. Proper market research, the study of market demand, and the requirement of product innovation give birth to the development of a new product. So, a new product can be a product innovation developed and brought to the market for the first time. It may be a completely original product or an existing product that has been modified and improved.
What is Demand Forecasting?
Demand Forecasting is a scientific technique to predict the likely future demand of a product. According to American Marketing Association, “Demand forecasting is an estimate of sales in dollars or physical units for a specified future period under a proposed marketing plan.” But demand forecasting for a new product requires specific skill, technique, and effort because the product is completely new in the market and no previous data is available about the sales. It looks complex and becomes a new challenge.
Key Demand Forecasting steps for a New Product Launch
1. Build a collaborative effort
Identify and select a handful of key people from marketing, sales, operations, and relevant technical departments to form a dedicated working team. The core team will be responsible for the development and management of the forecasting process throughout the launch period until demand planning becomes more predictable.
2. Forecasting initial sales volume - product based
The new product has no history at all for its sales forecasting. But different data sources relevant to the product demand...
Read More...