You only have one shot! How On-trade launches can bring success to NPD

Britvic trials of Pepsi’s Flavours syrup shots are one of a number of experiments reflecting other recent activity where consumers can order a drink flavoured with a shot of syrup from Apple, Vanilla, Cherry, Winter Spice to Tropical flavours. The trial will take place in 32 licensed premises across the UK over the next three months.

Other recent innovations by Pepsi was the launch in 2008 of its draught Extra Cold variant into the on-trade, as well as Pepsi Raw, a cola sourced from naturally sourced ingredients.

Whilst trials like Pepsi Flavoured syrup shots may not necessarily be developed and progressed into the off-trade sector it provides an outlet for testing innovative NPD and also enables winning ideas to be developed further.

Here at The Oxford Research Agency we regularly work with drinks manufacturers to help test innovation in NPD to help deliver market success in the on-trade sectors. Highlighted below are a number of thoughts on how to help deliver winning ideas:

1. Meaningful brand equity and relevant innovation
Faced with continual pricing pressures and declining volumes, it may feel difficult to continue to invest in a brand and innovate. However, a strong brand with well researched targeted innovation is the best strategy for achieving growth. Market share gains are triggered by new, interesting and, most importantly, relevant innovations. We not only help companies create innovative solutions, we also ensure that our clients capitalise on emerging trends, such as the buying British campaign for Coors’ launch of Carling earlier in the year.

2. Pre-launch success – looking to the future
Product development needs to maximise the chances of success in-market. Innovation needs be completely transparent in what will be achieved in-market. The pre-launch volumetric measurement of sales 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. These chances cannot be taken - 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 early 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…”.

3. Using the right measures
The on-trade and off-trade are very different consumer environments. Each needs to use different measures of success in pre-launch testing. On-trade sales modelling needs to accurately simulate the role of bar staff and managers in recommending new drinks: Stand-out needs to be accurately measured; sessionability of drinks has to be evaluated; in-depth qualitative insight will identify new key insights. The Oxford Research Agency has developed a research methodology to combine all of the key sales drivers and improvement diagnostics for the on-trade environment.

4. Innovation by communication
The key word – relevance – can be addressed effectively through repositioning and targeted communication. It’s not always about the need for high risk new brand development but creative approaches to an already existing winning brand. This can be anything from new flavours and variants to identifying new pack formats.

The Oxford Research Agency and Mimosa test innovation, from inception to launch, for 20 of the world’s biggest food and drink companies.

For expert guidance in on-trade innovation please contact Chris Sinclair or Andrew Tharme or call +44 (0)1865 728272 at The Oxford Research Agency.

For qualitative understanding call Sunita, Emma or John on +44 (0)1865 20 84 03 or contact info@mimosa-qual.com.