Benchmarking New Product Forecasting

BENCHMARKING NEW PRODUCT FORECASTING By Chaman L. Jain, St. John’s University New products are now the most important component in the success of any business. The world has become highly competitive, fueled by the growing trend toward globalization, advancements in technology, shorter life cycles, and rapidly changing consumer demand. The best way to drive consumers away from competitors is by introducing more and more new and better products. As such, a large number of new products are coming into the market every year. When someone asked Michael Dell, CEO of Dell Computer, about his recipe for success, his immediate response was: “Taking risk and staying one step ahead of competitors.” A good way to stay ahead of competition is to introduce new and better products. So, new product introduction is not an option any more, it is a necessity. For many companies it is the way to survival. DEFINING NEW PRODUCTS There is no standard definition of “new products.” Generally, a product or service is defined as “new” when it results from product improvement, line extension, market extension, and/or when it is new to the company and to the world. New products coming from ...