ABSTRACT
New product forecasting is an important part of and subsumed within launch, which is also referred to as new product introduction. Issues of cannibalization, supercession, and end-of-life planning are integral to the new product introduction discussions. The forecaster should be aware of the issues involved and possible strategies that may be employed to address the respective issues during new product forecasting and new product introduction. Cannibalization is 'the process by which a new product gains sales by diverting them from an existing product'. While not new product forecasting inherently, end-of-life planning is necessary, especially if supercession will take place. Supercession is the process by which one product replaces another product. End-of-life planning includes pricing strategy and scheduling when to turn off part procurement. Spare-parts forecasting is particularly an issue in end-of-life planning in the case of mechanized equipment because often such products continue to be used far beyond the given product life.
