THE SITUATION: Innovation is the lifeblood of consumer products. Whether the change is a small brand line extension or revolutionary new product, manufacturers need to continuously excite shoppers, consumers and retail partners via innovation. Roughly 1,900 new CPG products are launched every year, yet less than 3% of these items exceed first year sales of $50M – a benchmark number for success. What drives new product failure? Frequently it is a lack of understanding of the shopper and retailer dynamics critical to support innovation. Manufacturers build strong consumer and brand learning but forget to build in the retail perspective, thus limiting success for even the most innovative new products.
OUR SOLUTION: We offer our clients a variety of solutions spanning all stages of new product development, with a focus on building the strongest offer to maximize success with retailers and shoppers. This stretches from aisle/channel due diligence to understand potential growth opportunities to go-to-market optimization (pricing, location, selling stories, etc.) to maximize retailers’ adoption and support of new items.
Our key to success is facilitating the relationship between manufacturer and retailer in order to develop a new product strategy that satisfies the needs of shoppers, consumers, and retailers. We build insight through direct conversations with retailers, quantitative surveys, analysis of adjacent category behavioral/POS data and distillation of insights from benchmarked launches. We will bring key trends, white space opportunities, market sizing and retail practicalities to life. Linking behavioral, attitudinal and profitability data sources gives us a complete view of all aspects that impact a new product launch and enables our clients to develop a robust game plan to ensure that their product is in the 3% that succeed.
END BENEFIT: Incorporating shopper/retailer insight into upfront innovation planning significantly increases the odds of successful new product development.TALK TO AN EXPERT