DEMAND FORECASTING
Approaches to forecast demand for new products
Demand forecasting for the new products requires special skill and techniques as they are new products
and no previous data will be available about their sales.
1. Evolutionary approach
The principle behind this approach is that the demand for a new product is only an outgrowth and
evolution of the existing product.
Examples: 4K TV sets from Full HD TV sets.
2. Substitute approach
By this the new product is analyzed as a substitute for the old existing product or service.
Example: Uber car to substitute the existing private taxi service.
