Business Tip 6
Automate the Generation of Intelligent Insights

When presenting complex charts and graphs, the addition of intelligent commentary can quickly pull ideas to light ...

Manufacturers typically give a lot of thought to the potential consumers of their new products. In comparison, is enough attention being paid to the first customer of a new product — the retailer? No matter how small or large the launch is, a new product cannot be successful without the participation and support of retailer partners. Gaining their acceptance and trust often begins with the presentation of relevant data and consumer insights.

Retailers have a lot of questions about how new products affect their consumers and the potential impact on their business. Manufacturers need to be prepared to answer these questions.

The basics for a new product presentation should include:

• The new product and the category with customer-specific category and segment data that position the new product and the opportunity it represents within the category
• Information about the new product including visuals, product details, packaging, differentiators, opportunities, merchandising and placement, pricing, marketing support
• Action plan to set goals with the retailer. Tasks might include customizing programs, calendars and merchandising, creating scorecards, or a list of recommendations and next step

The new product and the category
How will the new product grow or improve the category? Is it going to attract new buyers to the category? Create a new category? Are current consumers going to buy more? Where is the proof?
Start by providing a context for the new product. Use fact-based category and segment information, such as category and consumer dynamics to support the new product story.

Be sure to talk about what the product’s volume potential will be once it is established as a regular item. Everybody needs to know if the new product is a big business or a small one.

Are the sales and profits from the item incremental or will the item deteriorate or cannibalize the sales and profits of other items? Include cannibalization factors in your calculations. What are the gross profit margins and how do they compare to that of the category? How about to existing items in the category?

Will the products draw new users to the category? Create new usage occasions? Increase average expenditure? Use historical evidence and research to prove your point.

Analyses like the ones mentioned above should find their way into every new item launch that you do. Take advantage of tools like XP3, from Interactive Edge, to make that process turn-key.

The data, products and accounts depicted in this example are fictitious. Any resemblance to actual data, products or accounts is purely coincidental.

The data, products and accounts depicted in this example are fictitious. Any resemblance to actual data, products or accounts is purely coincidental.