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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.

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About 5–10 minutes · no sign-up needed

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 × 1.2

Key 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

Try each one in your head first, then open the answer.

1. What's the US launch quantity?
3,200 × 1.2 = 3,840 units
2. What's Canada's launch quantity?
800 × 1.2 = 960 units
3. The launch slips 2 weeks, but the marketing date is fixed. What's the biggest risk?
Ads run while stores have nothing to sell

Learn 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.

Try this lesson free →
About 5–10 minutes · no sign-up needed