New Product Forecasting
More than 50 percent of new product launches fail in the marketplace. How can you predict your product’s success? If you’ve got new products in the pipeline or plans to reinvigorate the ones you’re selling now, there’s a proven approach to determine whether it will meet your goals. The NPD Group’s new product sales forecasting service can help you assess and improve the sales potential of new or revamped products and services before you launch them.
Through point-of-sale and consumer databases, NPD can catalogue how hundreds of thousands of new and revamped products perform after launch in multiple industries. This input is unique to NPD; it serves as the ideal benchmark and basis for calibrating, validating, and refining sales forecasts. It’s how to reduce the risk of investing in ideas that will not meet your sales objectives and focus your investment on your strongest concepts.
This forecasting approach delivers a quantitative pre-market sales forecast that includes simulation of multiple launch plans. It also incorporates a source of volume analysis to reveal sources of new product sales: Is the new product expected to cannibalize sales of other products under the same brand umbrella or steal share from competitors? Will it help grow the category by bringing in non-category buyers?
A concept testing service is also available, to be used in tandem with the forecasting service.