A complete suite of insight and support data for new products
It’s a fact that 8 out of 10 new products fail. To make sure you brand isn’t one of them IRI has developed the DaVinci launch management tool.
As FMGC manufacturer margins are squeezed on all sides by retailers, competitors, and shareholders new product development is an important factor in for driving growth. Premium pricing, great marketing and technological innovation in new products create the opportunities for growth in a flat, highly competitive FMCG marketplace.
Success in new product development (NPD) is highly varied, difficult to predict, hard to measure and expensive when it goes wrong. It is also dependent on planning, execution, and the overall shopper appeal of the product. Without the perfect combination of all three factors the higher the chance that your new product will fail.
With the DaVinci launch management tool we can help you plan for new product success by spotting the early signs of failure and help you to take immediate action to maximise your chances of success.
How does it work?
DaVinci uses a variety of benchmarks to identify trends, set targets, diagnose potential and forecast results. Typically 2-30 new brands in a category will be used to understand the new product dynamics and achievements of each brand and manufacturer.
Using a no deal sales rate index (NDSRI) DaVinci compares the new product to a category average sales rate of 100 to see how the performance matches up.
DaVinci in action, a case study
Brand A has been tracked since launch using both DaVinci and more traditional value sales and share figures.
Looking at the Value sales and share it looks like Brand A has been reasonably successful since its launch.
Brand A – Total GB / Major Mults
With DaVinci we can asses on a weekly basis how the product is doing by comparing the no deal sales rate index (NDSRI) to the category average.
So lets take a look…....
First 7 weeks – Total GB / Major Mults
At week 7 we see a step distribution build of 11 percentage points supported by a step change in unit sales to arrest decline in NDSR. This offers opportunity for growth in future, provided sales can continue to grow with support of better distribution and a media campaign.
Weeks 8 to 12 – Total GB / Major Mults
News in week 12 is the continued stabilisation of the NDSRI – up again by 2 points to 45 – and the arrest in the decline of the value sales rate for the brand. The latter phenomenon is a reflection of the first concerted promotional campaign on the brand with more than half of volume on deal for week 12. With distribution also increasing for the brand, it now has a platform for growth with media activity.
Weeks 13 to 15 - Total GB / Major Mults
After 8 weeks of relative stabilisation, media activity has driven NDSRI up 17 points to 68 - a highly welcome, if anticipated, development. Can the brand now sustain the NDSRI going forward? Benchmark launches in this category indicate that initial response to media is often good but that incremental TVRs in subsequent weeks do not add to sales rate and NDSRI falls back quickly before delisting.
How can DaVinci help you?
New product launches are the driving force behind FMCG growth but too many fail because companies are unable to plan effectively, execute successfully or recognise the consumer appeal inherent in their products.
Traditional measures do not allow consistent understanding or comparison of launches between different categories, markets and seasons. DaVinci normalises these differences to allow for a direct comparison of launch success or failure.
Using the knowledge from all major launches in the category, you can to interpret the early warning signs, spot over or under-performance and ultimately change behaviour and support for launches accordingly.
Wouldn’t you like to plan better, intervene more quickly and launch differently?
For more information on the DaVinci suite of products please contact your account representative or email Richard.Clifford@infores.com
About Information Resources, Inc.
Information Resources, Inc. (IRI) is the world’s leading provider of enterprise market information solutions and services, empowering its clients to grow their business profitably in a complex marketplace. Driving the transformation of the consumer packaged goods (CPG), retail, and healthcare industries, only IRI provides a unique combination of real-time market content, advanced analytics, enterprise performance management software, and professional services. The company’s portfolio of services, solutions, and technology enable leading retailers and their suppliers around the globe to see what they are missing, act faster with greater confidence and win at the shelf. Ninety-five percent of the FORTUNE Global 500 in CPG and retail leverage IRI to power their business. For more information, visit www.infores.com.