Historical Analogy:

It is a comparative analysis of the introduction and growth of a new product with other products that  have similar characteristics. Efforts are made to:

(i) Quantify the degree of similarity by rating, ranking or other expert opinion approaches.

(ii) Determine what the dissimilarities will do to the basic pattern.

The accuracy of this method depends on the ability to find analogous products or situations. It is a reasonably good range forecasting depending on the analyst's skill at interpreting or estimating the effects of differences in product and market factors. Major applications are for forecasts of new product sales and profitability.