Red Sky Delight – Developing New Ranges for Greater Sales: Wednesday 4th March

Walkers are launching a range of premium crisps called Red Sky to battle Kettle, Burt’s and the other premium brands. Red Sky has already caused a stir in the press and it looks like the category is due to grow substantially this year.

With a raft of new flavours in the range, identifying the optimal flavours to launch is now faster, more accurate and cheaper using new Range Optimisation tools.

How to identify the right flavours and varieties for your product range is an often asked question for research agencies. The Oxford Research Agency tests hundreds of ranges each year and with our clients, we have developed enhanced tools for identifying the best flavours to launch, with volume and value built into the analysis.

Every range is different and the approach taken to identify the optimal range also needs to be flexible, fit the objectives, and address the need to grow and nurture the category.

So, how do you identify the best range and make sure it grows the category?

1. Test appropriately
There are many tools on the market for testing ranges. Having recently tested the four main approaches, including standard range analysis, chip games, money allocation and share tools, The Oxford Research Agency has developed its own unique tool for range optimisation.

The key to range optimisation is avoiding ‘games’ in the research process, which are inherently unreliable and using analysis techniques that are validated to in-market performance. Our Range Optimiser tool uses a short online study to develop the optimal range.

We have case studies from three different categories that show the power of this new approach - give us a call to arrange a meeting.
 

2. “Will it grow the category?”
It’s the key question all retailers ask about a new product launch and new range of flavours, and it is key to getting shelf space. Our Range Optimiser identifies range and category growth in terms that retailers can identify with: sales!

Make sure your research helps you identify category growth and the impact of each additional product to your Range. It will enable you to convince retailers to stock your Line Extensions.

3. Make mine a double
What are the most successful Line Extensions? Our research shows it’s a very simple solution: offer a different pack size of the main variant! It’s a simple, cost effective approach which can add significant volumes and revenue to the bottom line. However, take care to offer variety as well as different formats, as single variety Ranges often struggle in market.

4. Niche additions to a Range
Selecting the optimal Range to launch is a tough choice. The later additions to the Range will come under pressure from Retailers for shelf space and many stores will only stock selected products from the Range. It’s all too easy for the later added products in the range to quickly come under threat of delisting, so make sure you know which products are your ‘Core’ products and sell-in the Full and Reduced Range – you will get a volume advantage.

5. Different ranges for different stores
Ensure you plan for the different combinations of the Range that different retailers will stock. In an ideal world, all stores will stock the full Range, but our analysis shows that no brand enjoys this luxury.

Our Range Optimiser identifies the increased volume you get for each product in your Range, enabling you to identify the ‘Core’ and ‘Supporting’ products. It improves your bargaining power with retailers, and enables you to plan your production and sales efforts.

With the output in volume, you have the evidence to show the retailers and your sales team which varieties should be stocked by size of store.

6. Use the shelf
The shelf, as reported in previous weeks is an important battleground for new launches, with an extra 30% in sales available from using ‘good’ packaging.

Updating your packaging to maximise visibility and be fresh and contemporary, reduces confusion and enhances the opportunity for trial and repeat purchase.

Ensure that you plan any additional products to enhance the appearance of the Range on-shelf - it will increase the volume for the whole Range.

7. Reduce cannibalisation
Cannibalisation is only bad when the new product takes sales from more profitable products in the Range, or when the cannibalisation reaches the point where the increase in sales for the whole range is too small to return your investment in the new launch.

Your new product has to drive increased consumption as well as variety and choice – this is when new additions to an expanding range will be successful. Range Optimiser identifies the additional volume, thereby giving you the knowledge to launch an enhanced range of products.

8. Refresh & re-position
If your Range is getting tired and volumes are starting to fall, you need to re-evaluate what your brand and Range stand for, and whether they still fit the needs of consumers.

A new line up of fragrances, flavours and varieties can re-ignite sales. Red Sky has used a unique combination of new flavours to push the brand into new territories – could this work for your brand too?

Developing and enhancing ranges is now simpler, and with validated research tools available to help, you can develop and sell-in your new range with the confidence of a boost in sales.

To find our more, contact chris.sinclair@tora.co.uk or call +44 (0)1865 728272