200% Increase In New Ideas Tested Shows That 2010 Set To Be Big Year For New Product Launches: Wednesday 11th November 2009
Unilever this week axed Persil washing up liquid, to make way for new innovation, a technique it employed with Knorr prior to launching Stock Pots.
Across FMCG, innovation calendars are bursting for 2010 with forward thinking clients ready to unleash ground breaking NPD. In the face of the new launches planned, The Oxford Research Agency shows how you can ensure that your ideas will cut through in one of the biggest years for FMCG new product launches.
As the recession took hold in 2008, many product launches for 2009 were scrapped or held back. Only those already committed to launch were preceded with, leading to a substantial drop in new launches during 2009.
Throughout 2009, clients have been focused on identifying the big ideas for the next 2-3 years. At The Oxford Research Agency we have seen a 200% increase in the number of new ideas being tested and optimised ready for 2010. It makes planning for the new launches more critical as competition will be substantial.
There are five critical steps to follow to ensure success in market:
1. Screen, Refine, Optimise
Your approach to NPD is critical in identifying the winning ideas. Those that are strong and not reliant on price to motivate consumers are the ones which will have longevity in market.
Ensure your testing programme for concepts identifies the power of the idea without price – in our databases, 38% of winning ideas are not progressed because of the wrong price point on the concept.
At The Oxford Research Agency we use a fully integrated NPD approach for screening, testing and optimising New Product Launches. Used by over 20 of the Top 50 FMCG companies in the world, it helps us generate more successful product launches, over 4 times the average measured by Nielsen.
2. Optimise the Marketing Plan
The best marketing plans are actually quite simple. They use new tweaks on existing techniques to deliver cut through sales increases. The Oxford Research Agency can help you optimise your plans for the greatest sales
3. Get buy-in from your sales team
The number one reason why products fail is that the Sales Team doesn’t believe in the new product launch. If they are not on board, listings will not be achieved, promotions will be wasted and the product will fail.
It is critical to get the sales team onboard to ensure a successful launch
4. Open consumers minds to your product
A single powerful piece of communication can dramatically increase your sales potential. Several successful brands have accomplished this in 2009 by being single minded in their communication, and focused on the core benefit of the product. At The Oxford Research Agency we measure the power of communication to deliver better sales as part of our volume forecasting approach.
5. Make Room
With shelf space limited, retailers are looking for products to be removed off the shelves to make way for new products. Although a difficult decision, recommending the delisting of one of your products for your new NPD is a good route forward. It shows trust in your new innovation and can be a quick route to listing.
At The Oxford Research Agency we regularly conduct range reviews for our clients, helping them identify the best stocking route for their brands.
The Oxford Research Agency tests innovation, from inception to launch, for 20 of the world’s biggest food and drink companies. Find out how we help them launch products which consistently stay in market, by contacting Chris Sinclair, Managing Director, or visit our website at www.tora.co.uk
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