Chandigarh School

Of Business

Management Department

Master of Business
Administration
MBA-3rd Semester New Product
Sales
Marketing Analytics Forecasting
MBA 961-18

Ms. Aayushi Mithu

Assistant Professor

CAMPUS: JHANJERI, MOHALI

 Today’s Agenda….

New Product Sales Forecasting

Concept
Methods
New Product Sales Forecasting

• Sales forecasting for a new product is a crucial process

for businesses to make informed decisions about
production, marketing, and resource allocation.
Accurate forecasting helps in managing inventory,
setting sales targets, and assessing the financial viability
of a new product.
Step-by-step guide on how to approach new product sales forecasting:

• Understand Your Product:

• Begin by thoroughly understanding the new product. What
problem does it solve? Who is your target audience? What are
its unique features and benefits?
• Market Research:
• Conduct extensive market research to assess demand. Analyze
the size of the target market, the competition, and trends in the
industry.
• Historical Data (if available):
• If your business has similar products, historical sales data can be
a valuable resource. Analyze past product launches to identify
patterns and trends.
• Sales Projections by Segment:
• Break down your market into segments (e.g., geographic
regions, customer types) and estimate sales for each
segment. Different segments may have varying levels of
demand.
• Competitor Analysis:
• Study the competition. Analyze the performance of similar
products in the market to get a sense of what you can expect.
• Price Point and Pricing Strategy:
• Determine the price point for your product. Consider factors
like production costs, perceived value, and competitor pricing.
Your pricing strategy should align with your sales goals.
• Sales Channels:
• Decide how you'll distribute your product. Will you sell
directly to consumers, through retailers, or online? Each
channel may have different sales patterns and costs.
• Marketing Plan:
• Develop a comprehensive marketing plan to promote your
product. Consider advertising, promotions, and other
marketing activities that will influence sales.
• Sales Funnel Analysis:
• Understand the sales funnel for your product. How many
leads or prospects do you need to generate to achieve your
sales target? What's the conversion rate at each stage of the
funnel?
• Seasonal and Cyclical Trends:
• Consider any seasonal or cyclical factors that may affect sales.
For example, holiday seasons or industry-specific cycles.
• Use Forecasting Models:
• There are several quantitative methods and models for sales
forecasting, including time series analysis, regression analysis,
and machine learning algorithms. Choose the most
appropriate method based on your data and business context.
• Data Collection and Validation:
• Gather data from various sources, including market research,
historical data, and real-time data. Ensure the data is accurate
and up-to-date.
• Forecast Validation:
• Continuously monitor and validate your forecasts against actual sales.
Adjust your forecasts as necessary based on real-world results.
• Scenario Planning:
• Consider different scenarios. What happens if sales are lower than
expected? What if they exceed expectations? Have contingency plans in
place.
• Iterate and Improve:
• Sales forecasting is an ongoing process. Continuously gather feedback
and data, refine your models, and improve your forecasting accuracy over
time.
• Communication and Collaboration:
• Ensure that different teams within your organization, such as sales,
marketing, and production, are aligned with the sales forecasts. Effective
communication is key to successful forecasting.
Conclusion
• Remember that sales forecasting is not an exact science,
and there will always be some degree of uncertainty.
However, by following a systematic approach and using
the best available data and tools, you can make more
informed decisions about your new product's sales
potential.