Launching a new product isn’t easy, with 75% failing each year. Yet consumers are hungry to see exciting innovations on shelf.
According to a Nielsen study, 63% of respondents to the “Global New Product Innovation Survey” said they like the fact that manufacturers offer new products.
A StayinFront 20:20 RDI white paper offers tips on maximising the potential success of new products during the final stages of launch and the important role EPoS data plays in the process.
The early warning signs of imperfect execution
Having good EPoS (electronic point of sale) data is key to launch success. It gives information about the number of units and value of sales passing through checkouts. Often this can be accessed directly on demand via a supplier specific portal in near real time – typically early in the morning for the previous day’s sales.
This means that brand owners can see how stores are selling the new product and take the necessary action to fix any apparent problems.
For information even earlier in the execution process, some retailers can also provide information about stock levels throughout their supply chain, which enables even more detailed insights to be generated about how the launch plan for a new product is being executed.
This information can be used to highlight potential issues before they occur. For example, if the planned date for launch in store is approaching and stock hasn’t moved from central to regional depots. Or some regional depots have transmitted stock to stores in good time, but others haven’t. Or even if some stores have stock and some don’t, or some seem not to have sufficient stock cover.
StayinFront 20:20 RDI notes that EPoS works best in tandem with store visits by brand owners to check that the product is available for the shopper to pick up, and that retail environment reflects the agreement in terms of point of sale materials, temporary display items and so on.
“In fact, there is no substitute for this anecdotal feedback," StayinFront notes. "EPoS data can never tell you for sure whether your planogram or display agreements have been put in place exactly as you agreed; the data patterns can indicate some of these phenomena, but not predict with absolute certainty.”
If there is an issue with sales, StayinFront adds: “EPoS data is rich with possibilities. There are clues about the root cause in the nature and shape of the data which can help point the sales person to the most likely resolution of the problem.
“As well as highlighting issues, analysis of the data can also point to success stories. If certain stores are performing well above expectation, they can be selected for more detailed review to better understand the drivers underpinning this performance.
“By studying feedback from field visits, head office analysts can see whether more displays have been sited in top performing stores for example, and the incremental effect calculated to provide a value measure.“
20:20 Retail Data Insight - Alerts Technology
StayinFront 20:20 RDI software generates timely, drillable reports and personalised alerts highlighting performance gaps and sales opportunities, helping field sales teams to optimize sales.
Alerts are provided in a simple, highly visual way, designed to be easy for the sales person to read and equally impactful when presented instore to relevant retailer staff.20:20 Retail Data Insight’s alerts technology is integrated in StayinFront’s market leading TouchCG retail execution software. That means that any StayinFront client working with version 12.23 or newer can simply ask for the functionality to be enabled.
For TouchCG clients, they can either join the StayinFront club or use 20:20’s stand-alone Field View app, which works in harmony with any SFA software and is available in Android and iOS versions.
To find out more about fixing launch execution problems at head office level and making the most of data on your next product launch, click here.
For further information, contact Jeanette Magaling at email@example.com
StayinFront is a Corporate Partner of The Drinks Association.