Presentation on theme: "NPD – You only launch it once. So do it right! Nick Shepherd Marketing Consultant."— Presentation transcript:
NPD – You only launch it once. So do it right! Nick Shepherd Marketing Consultant
NPD – is always critical to success. It’s even more so in tough times. Failure is fundamentally much less affordable The inherent “knee-jerk” reaction is often to cancel all NPD. Risk aversion increases. But.... Coming out of recessions the most successful companies will be those who maintained marketing support and NPD.
What are the issues? Rational – Bad and Good. P&L negative possibly for 2 years – not just the current financial year. Cash flow implications. Benefits to capacity utilisation. Employment retention. More “sales-effective” advertising. Incremental volume growth and Share gains.
What are the issues? “Emotional” – Provides something more motivating and exciting for sales team. “Distracts” retailers from other “concerns”. Touches and inspires all parts of the company. Puts competitors on the back-foot. But... Increases risk profiles – a journey into the unkown.
Given the potential for “knee-jerks”, what can you do to decrease risks/increase confidence? Raise the hurdle rates; especially in regards to product fulfilment. Why waste all that effort to gain trial on something that doesn’t get repeat? Delay those projects requiring significant capital i.e. prioritise those using free capacity. Reflect full-absorption and incremental costing. Prioritise those with lowest cannibalisation rates. Get all the business functions supporting the effort.
Ensure you have clear answers to the following questions. What will consumers replace to use my product instead? Does my product’s delivery stack up to do this? What is the single most important benefit based on a consumer insight that will make consumers switch? Can I communicate that benefit? Is the product differentiated enough? Does it stand out from the crowd on-shelf? Do I have enough support ATL/BTL to make it successful? Are each of the elements of the plan as smart as possible?
Most common mistakes Product doesn’t deliver on it’s promise. There isn’t a relevant consumer insight. The support programme is sub-optimal. Advertising starts too long after distribution is achieved. All the effort is about Trial and not enough supporting Repeat. Trial programmes stop after Year 1. But........
Number 1 mistake is... Not stopping a launch when you know it is flawed and will therefore fail. Good luck!