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You may have to describe the product transition plan and the resulting
effects on business unit wide / company wide revenue and market
share in the target markets due to the introduction of your new product.
For example, your product could cannibalize sales of existing products
and solutions or it could boost existing revenue and market share.>>
(Note: if you can articulate the case for the scenario whereby sales and
market share will improve with facts and figures, you will receive less friction
from other stakeholders in your company.)
2.3.2 Cost Calculations
<< To arrive at the MC curves above, you may need to provide cost
calculations. You may have to look at existing financial data such as
COGS (cost of goods sold) of existing products, and multiply COGS
per production unit multiplied by production units per month / per
quarter as per the production forecast. >>
2.3.2.1 Production Forecast
<<For cost calculations, the following production forecast table can
help. The table can be expanded to accommodate additional rows as
required…>>
Table 2.1: Production Forecast – assuming product release in Sep 2007
9/07
10/07
11/07
12/07
1/08
2/08
3/08
4/08
5/08
6/08
7/08
8/08
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