New Product Development

• · Evaluating Sales Potential

All individual sales are either a trial or a repeat sale; and total sales potential can be estimated even at early development with a simple "back of an envelope" calculation. The Marketing department often have a volume target in mind, and this can be broken down into likely trial levels (does anyone really get 20% trial in year 1?), and typical category purchasing in a year (unfortunately, in our experience this is often lower than people think!).

With some in-house experience of "likelihood to buy" scores, a comparison with norms will show if a concept has potential even at an early stage. The more normative data that is available, the more precise a judgement can be made.

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