In this article:
What is Market Calibration?
Market Simulator helps you understand where an innovation will win share and who it will win it from. Calibration links modelled share of choice data from Market Simulator with real-world sales data to project unit volume and revenue.
When is Calibration worth using?
Use calibration when you need projected unit sales and revenue to make decisions such as:
Securing investment or budget approval
Build a credible sales and revenue forecast to support funding requests.Deciding whether to launch
Estimate expected sales and revenue to support a clear go or no-go decision.Selling into retailers
Show expected revenue impact and where sales will come from to secure shelf space.Planning forecasts and portfolio strategy
Provide projected sales for budgeting and understand how much volume is incremental versus shifting within your portfolio.
What do you need to provide?
To calibrate a model, we need unit volume sales for existing in-market products from sources such as Nielsen or Circana (formerly IRI).
What do you get back?
You will receive a calibrated Market Simulator in Excel. It allows you to adjust product availability and project unit sales and revenue for all products included in the test.
For each scenario run, you will see:
Unit Volume & Revenue Forecasts for all products or innovations included in the scenario.
Source of Volume – whether the share is incremental or cannibalistic.
Interested in calibrating your study?
Please reach out to your Customer Success Manager to learn more or discuss next steps.