Samsonite Corporation New Product Sales Forecasting Research How To Estimate Sales Of New Product Forecasting

2063 words - 8 pages

Introudction.The development and introduction of a new consumer packaged product is a risky venture. Many corporate executives' careers have fail of new product launches.In an effort to reduce the risks associated with new products, the forecasting of year-one sales has become an established practice within the marketing research industry. Despite many claims of high accurate, forecasting sales of new products is fraught with risks, and estimates often are off the mark. The risk of great error is particularly high for new products that represent a paradigm shift. That is, something fundamentally new and different. The goal of this article is to take a bit of the mystery out of the methods used to derive year-one sales forecasts for new consumer packaged goods.History of Samsonite CorporationSamsonite Corporation is the leading manufacturer of luggage in the world and the top seller of luggage in the United States, Europe, and Asia. In addition to its world-renowned Samsonite label, the company also markets the popular American Tourister and Lark brands. Under those names, Samsonite offers a full line of luggage, including soft side and hard side suitcases, garment bags, casual bags, business cases, and other travel bags and accessories.AimAs it is a worldwide company, an effort to reduce the risks associated with new products, the forecasting of year-one sales has become very important for the regional marketing. In case of this, Series research of new product forecasting must be implemented so as to reduce the risk of over stock.Market Research method and identificationMarket research method be obtained from primary and secondary source, both of sources are very significant for our analysis, herewith some method of our forecasting new product depletions.Second scources Analysis - Historical reviewThe first (and perhaps most common) method of forecasting new product depletions is historical review. If a company has introduced similar new products into similar markets in the past, these histories can often be good predictors of future outcomes. If a company has no such history, then histories of similar new products introduced by competitors or other companies can serve as historical guidelines to help derive a new product sales forecast. To be honest, we prefer to use secondary data sources so as to saving in time and cost of acquiring information. Thus, if we launch the new product, is the similar of specification and characteristic, we will prefer to use the secondary source data for our decision making.But, sometimes the historical approach has limitations, however. History is not always a good predictor of the future: It's often difficult to find accurate historical data relevant to the new product under consideration -- and what other companies have been able to do doesn't necessarily tell us what the next company can do. That is, different companies have varying levels of ability when it comes to successfully introducing new products....

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