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Forecasting - New Product Introduction |
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Question
Is our recent product introduction on track with our goals?
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Challenge
A client's challenge was to predict the next 24 months' volume demand for it's most recent product introduction in order to realign the production capacity. Due to the lack of extensive historical data (only a few months of actual sales were available), the client also had acquired other data regarding their new product from syndicated data providers (e.g., product awareness data, propensity data as well as house hold panel data).
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Solution
Our first step was to design and test prediction models utilizing all the data provided by the client, as well as cross-industry and similar product data. Once the client felt comfortable with the model's prediction accuracy we incorporated the model into a desktop tool.
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Outcome
The value we created for our client was not just in the forecasting of needed production capacity. They were also able to simulate the effect that different package sizes had on market share as well as the profitability of the brand altogether.
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