When it comes to new product listings there are many hurdles suppliers have to cross in order to be successful. Say you're a supplier, you’ve rebranded, conducted market research and spent thousands developing the product which has resulted in you securing a listing in a major retailer. Great right!? Well, not quite.
Nielsen reports state that over 80% of new product launches fail [1]. Going one step further the report also suggests that only 25% are still being stocked after a year [1]. Therefore, securing a place on a supermarket shelf is clearly not enough to deem a product launch successful. Keeping it ranged is what appears to be the real challenge for most suppliers, as well as literal on shelf availability.
On a positive note, Nielsen also state that 57% of consumers added at least one new product to their last shopping basket [2]. So there must be more to product failure than consumers simply not buying or wanting the product.
Whilst food and beverage brands must innovate to maintain market share, how do they avoid launching one of the 80-85% of new products that fail? The secret is having the capability to be able to explore your product data in a way that can be proactively acted upon before small issues become more problematic.
Based on our experience of working with 1000 suppliers to UK supermarkets, we have identified four critical elements to implementing a successful new product launch:
Our latest eBook “4 Ways to Ensure Successful Product Launches into Supermarkets” extensively discusses all of the four points above and more. You can download it here completely free of charge.
References
[1] Nielsen Report - Three common causes of innovation failure
https://www.nielsen.com/ma/en/insights/news/2018/three-common-causes-innovation-failure.print.html
[2] Nielsen Report - The why behind the try
https://www.nielsen.com/apac/en/insights/news/2015/new-product-innovation-the-why-behind-the-try.html
