Lessons › Retail Supply Chain › Distribution and launches
Retail Supply Chain lesson
Sizing a new product launch
A new product has no sales history, so analysts start from a similar past product and adjust. The new earbuds are expected to sell 20% more.
Try this lesson free →The idea
A new product has no sales history, so analysts start from a similar past product and adjust. The new earbuds are expected to sell 20% more:
Formulas
Similar product × 1.2Key points
Similar productA past launch with a similar price, customer and season.
UpliftAdjust for what's different: 20% more means × 1.2.
Launch quantitySimilar product sales × Uplift, for the first 8 weeks.
Agree the launch quantity with demand planning, then check the DCs can receive it in time.
Practice
1. What's the US launch quantity?
3,200 × 1.2 = 3,840 units2. What's Canada's launch quantity?
800 × 1.2 = 960 units3. The launch slips 2 weeks, but the marketing date is fixed. What's the biggest risk?
Ads run while stores have nothing to sellLearn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.
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