Evaluating the Impact of a New Product on the Sales of other Products
Abstract
The purpose of this article is to evaluate the impact of a new product on the sales of other products. Launching a new product may lead to increase or decrease of sales in the products of the same group. Customers may continue buying standard products or they may be oriented to new products. New products may cause internal competition. Statistical methods are applied. Time series analysis is used. Transactional database of a confectionary factory is the main source of data. The time series analysis is carried in two datasets – quantities of sales of three products on a daily basis and on a monthly basis. The main methods used are time series analysis and regression analysis. The three time series (corresponding to the three products) are separated into two parts – before and after launching the new product. It is proved that the new product does not affect the sales of the two other products. The new product is well accepted and its sales increase together with the sales of the two other products.References
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