In this video, Camil Blanchet, Ikigai Enterprise Solution Architect, answers one of the more frequent questions that we get from our clients: how to forecast demand for a new product launch.
Watch VideoOne of the questions we commonly get in meetings with our clients here at ikigai is how to forecast demand for a new product. How do we determine the initial production quantity? There are three data sources that we think about to inform that initial demand.
The first is a product cluster if you're creating a new variation of an SKU that already exists. Then you can use that Master SKU, that category, that product cluster to inform your initial production quantity.
Another area that we would use is the market or comparable analysis so if you don't have a product similar to the one you're about to offer but a competitor does, then you can look at their sales numbers and their quantity and try to backtrack what your quantity should be or could be.
The third area we would use is promotion engagement. If you started putting out initial promotions and ads, you can use the engagement from that promotion to determine how much of a demand signal there might be. Now once you have an initial production quantity, which is going to be the most difficult number to come up with, it can take as few as a few days to generate a product specific demand signal and that's something that we do here at Ikigai with aiCasting.
In this video, Camil Blanchet, Ikigai Enterprise Solution Architect, answers one of the more frequent questions that we get from our clients: how to forecast demand for a new product launch.
One of the questions we commonly get in meetings with our clients here at ikigai is how to forecast demand for a new product. How do we determine the initial production quantity? There are three data sources that we think about to inform that initial demand.
The first is a product cluster if you're creating a new variation of an SKU that already exists. Then you can use that Master SKU, that category, that product cluster to inform your initial production quantity.
Another area that we would use is the market or comparable analysis so if you don't have a product similar to the one you're about to offer but a competitor does, then you can look at their sales numbers and their quantity and try to backtrack what your quantity should be or could be.
The third area we would use is promotion engagement. If you started putting out initial promotions and ads, you can use the engagement from that promotion to determine how much of a demand signal there might be. Now once you have an initial production quantity, which is going to be the most difficult number to come up with, it can take as few as a few days to generate a product specific demand signal and that's something that we do here at Ikigai with aiCasting.
