Using Analog Method in New-product Forecasting

The basic idea of using analog method in new-product forecasting is about using the information about the introduction of other similar products in the past to create the forecast. For example, if we have a toy company that is going to launch a new product based on a popular animated character, we should check how our previous products that have the same characteristics (toy based on a popular animated character) performed in the market. But of course, because the new product that we are going to introduce is different and the market condition might have changed, we need to put all the differences into our consideration and use them in our calculations.