HOW TO OPTIMISE NEW PRODUCT INTRODUCTIONS?
Mitigate risks and maximise opportunities
New Product Introductions (NPI) are one of the levers companies can use to boost sales and make their activities sustainable over time.
When monitored effectively, product launches usually result in additional revenue, increased market share, and potentially new clients. But, launches can be unsuccessful, leading to missed sales and a significant impact on the company profit and loss (P&L). Unsold products must be stored before being either cleared out through discounters or destroyed.
For years, new product marketing was perceived as a key differentiator mainly for cosmetics, consumer electronics and fashion brands. Over the recent years, consumers have been increasingly unpredictable, less loyal to brands and hungry for bespoke products whatever the industry. All company sectors – fragrances, food and beverage, skincare, apparel, automotive, even pet food brands, have offered their customers extended opportunities to create a personalised product and feel unique.
If success cannot be guaranteed whatever the company renown, it is imperative to mitigate launch risks and make sure proper processes and structures are in place to do so.
KEY PERFORMANCE INDICATORS (KPI)
TOTAL COST OF OWNERSHIP (TCO)
RETURN ON INVESTMENT
What challenges do companies face when dealing with NPI?
Beyond marketing and trade challenges, product launches involve critical challenges in supply chain planning.
Anticipating demand and supply is getting increasingly difficult to manage, especially when dealing with larger product ranges. Brands might plan a long time ahead to ensure either materials or capacities availability. Besides, they must quickly and efficiently adapt and respond to a fast-moving consumer demand using real-time stocks and sales trading data for a short-term horizon.
Covid-19 impact on New Product Introductions
In a customer-driven economy, marketing professionals study consumers’ behaviours and sentiments to understand why, what, where and how they buy. Gathering insights before products’ development helps envisage new products that will meet buyers’ expectations.
What if black swan events, like the Covid-19 crisis, change the game, such as consumers moving back to basics and changing their way of consuming goods? Companies’ ability to understand their customers enables them to stay ahead of their competitors by combining this knowledge with internal collaboration, real-time data and smart tools. This makes them agile and responsive, whatever the situation.
Download this full Best Practices white paper and discover
the 5 Key Pillars of an optimised NPI!
In this white paper, you will also learn:
- Who’s concerned by optimising new product introductions (NPI)?
- Why is it crucial to optimise NPI process? What are the Benefits?
- How to optimise your NPI process? The journey towards optimised NPI – The 5 Key Pillars
- How FuturMaster can help you to optimise your NPI process?