Christmas is coming – Focussing on festive NPD and beyond

Some of Britain’s largest brands are said to be bracing themselves for one of the most competitive Christmases ever with an uncertain economic situation and unemployment still rising.

Carine San Juan, Premier Foods head of category for savoury recently commented in The Grocer, "It's going to be a very fierce Christmas and I think the retailers are going to be very aggressive. The numbers in terms of the economy are quite gloomy we're expecting 10% unemployment this Christmas and so from that perspective I think there is a level of unknown with regard to this year."

Last Christmas shoppers defied the doom and gloom with relatively strong sales and brands holding their own against the threat of own label products. This year it would appear that the main manufacturers are playing it safe by focussing on core brands rather than more exotic NPD, hence Mr Kipling are introducing limited-edition Mr Kipling Rum & Raisin Slices and the Bisto Best range will have a seasonal turkey-flavoured variant.
 

Other traditional Christmas launches have included Northern Foods, the Fox's brand introducing Fox's Wonders, a premium chocolate biscuit range in a purple metallic tin and Fox's traditional Fabulously Special biscuit tin.

In these uncertain times promoting a well established traditional brand with a new Christmas twist should ensure broad appeal and would seem to be the sensible option for maximising Christmas revenues and delivering success.

But planning ahead, how can you be sure that you continue to deliver a Christmas cracker rather than a cold turkey in all your NPD?

There are a number of key activities which will help in the NPD process:

1. Measure ROI earlier, quicker and more cost-effectively
NPD needs to be very transparent in what will be achieved in-market. The pre-launch volumetric measurement of NPD potential can be too little too late, i.e. 2-3 years of pipeline activity becomes a running of the gauntlet when it comes to launching a product that underperformed in the final mix test.

Regardless of the economic conditions, these chances should not be taken, so the NPD process needs to be bullet-proof when it comes to predicting market potential and knowing how to reformulate to save wasting significant investment.

The Oxford Research Agency conducts volumetric research earlier in the development cycle, generally at the traditional Concept Product Test stage of research (and even earlier at the concept potential/screening stage). One client who moved their NPD programme to The Oxford Research Agency commented that this approach “…saved us £500,000 a year and significantly improved the level of insight from every study…”

Testing early has huge benefits to the business. You get to market quicker with better ideas, propositions which will not work are killed off earlier, saving you money and enabling you to get a head start on your competitors.

Now is also the ideal time to review what is delivering sales and profit, what is not and what could do. The Oxford Research Agency has been witnessing a spend trend into packaging and away from more expensive marketing activity. The right packaging changes can deliver significant volume uplifts from the shelf, enhance brand equity, and gain perpetual favour by living with consumers every day. The Oxford Research Agency has rare packaging ROI tools that prove the worth of packaging changes.

2. Be hard on ranges – consumers will be
Now is the time to make sure ranges are spot on when it comes to rationalisation and effective extension. Most categories have too many lines that add no value to consumers’ repertoires. The ‘me toos’, mediocre brands and unnecessary variants may well have suffered in recent months. Retailers and consumers will have needed more ‘proof’ that products justify a specific place on their shelves and in their homes respectively. From a research point of view, understanding, measuring and optimising ranges is difficult. In particular, evaluating ranges of 20, 30, 50….lines in research needs a sophisticated and ROI measurable approach. Inevitably, many ranges are under-researched and therefore far from optimised.

The Oxford Research Agency has in-store, online and in-home proprietary methodologies to rationalise, extend and optimise ranges, including the ability to predict sales impacts of range changes.

3. Maximising opportunities post recession
Costs may well have been cut over recent months. However, cutting costs in an arbitrary and ruthless fashion may come back to haunt post-recession. For example, product reformulations using cheaper ingredients may cut costs but may also damage sales and band equity. Cutting out packaging complexity should cut costs but is what remains adversely impacting shelf stand-out, consumer appeal and brand image?
Now may still be the time to review costs but there may be new opportunities on the horizon. Regardless the right mix of action standards need to be established, measured and trusted to ensure that consumer alienation does not occur and that the business is well placed if the recovery is round the corner.

4. Are research agencies set-up to help you out of this recession?
Businesses are evaluating their market research agencies in terms of providing certainty in times of volatility. If research agencies cannot provide accurate ROI measures, clear trusted business recommendations and be affordable and be quick enough then it might be time to shop around to find ones that can.

The Oxford Research Agency has a suite of sales volumetric tools that are ideal for companies who need to prove ROI of Marketing and NPD and maximise the chances of market success in times of recession.
To find out how The Oxford Research Agency can help you, please contact Andrew Tharme (andrew.tharme@tora.co.uk or call 01865 72 82 72 / 07970 962091).