Launching a new product on the FMCG market is an extremely complex and absorbing "art", the correct mastery of which allows manufacturers of goods to fulfill the set goals of the enterprise – in short: to make money. This process requires the participation of almost every department in the company-from marketing to sales representatives and logistics. And what exactly is it? More on this below!
One of the first questions we need to answer ourselves when considering a new product is fact, why do we do this - what is the purpose of this introduction from the point of view of the company itself? Are we interested in creating a new product category, expanding the segment, or maybe we just want to respond to the actions of our competitors?
However, to properly define a goal, we need a product, and it's a good product. So, let's move on to the world of marketing…
Step I: Product analysis and selection
The process of introducing a new product to the market begins with an in-depth analysis. We take into account a number of data that will allow us to make a decision about a new product. Which ones?
So, at the beginning of our analytical adventure, we should consider potential and market potentialwhich we want to operate on – whether it shows growth trends, which players are on it, and what barriers to entry we see (Porter analysis, Nielsen data, GFK, and many others can be useful).
Another very important element is keep a close eye on all the trends that are currently taking place in the market. This is crucial, because it allows us to adapt new products to existing phenomena and trends, and those that are not enough in the modern world, and the consumer pays attention to them – for example, trends in convenience, health, ecology or any actions of brands for the benefit of the planet.
In the end, the choice of a product, its taste, weight or packaging should be obtained not only from market analysis, but also from answering questions.: what our customers need or in what life situations they will consume it (behavioral approach).
Step II: Product design
Once we have selected what we think is the most suitable product, we will start intensive work on its design. What's what, but it is the packaging that will allow us to attract the attention of customers at the point of retail, so we also spend a lot of time finalizing visual issues. At this stage, as a rule, we can already use consumer research (for example, focus groups, eyetracking studies), which "supports" us in choosing the right label.
Meanwhile, the marketing and R & D departments are working on product recipe and with the help of a series of sensory analyses, they choose the right taste. All this, of course, has a significant impact on the financial calculations of novelty.
Step III: Marketing and Sales Action Plan
Well, we have a product developed and created. Now, to significantly increase the chances of its success in the market, we need to develop detailed plan of marketing, sales and sales activities. This should be a consistent set of actions that will support the product in the battle with competitors in the market.
Currently, the buyer / consumer is bombarded with thousands of messages – so it is important to be in their field of attention. As Nobel Prize winner Daniel Kahneman proved (Thinking fast and slow) and how behavioral economists preach, good. 95% of our purchasing decisions are made unconsciouslythis is why it is so important to ensure the mental accessibility of our products.
What is this newfangled marketing? According to marketing guru Byron Sharp, this is brands that have a set of legible differences (assets) and conduct constantly "updated" communication, they are more memorable, and therefore more likely that their products will end up in the shopping cart.
Thus, we should strive to ensure that marketing support for product launches is conducted in accordance with a 360-degree strategy (of course, depending on the budget that we have) – i.e. in digital channels, TVs, OOH, through commercial press, POSM or offers aimed at retailers. Good insight and consistency of communication are always at a premium.
Step IV: Distribution strategy and ... price
Distribution
Planning, Planning, and once again strategy-this time distribution. Based on our corporate resources, i.e. basic information such as: our logistics capabilities, production facilities, warehouses, and ending with the number of sales representatives, we can determine what our goals are. real product sales opportunities.
In an ideal world, we would address it to stores of all formats (for example, supermarkets and small format stores) or sales channels (for example, a traditional channel, e-commerce). However, we must get down to earth and pay attention to the barriers to entry in a certain segment, which, for example, as a small market player, we will not be able to overcome.
Ba, even if our market position and the size of the enterprise guarantee us the possibility of widespread distribution, it is still we need to prepare an offer for different store formats (new technologies that are forever embedded in FMCG, such as geolocation*, can also be useful), rethink the expected turnover of employees, and finally convince decision makers in individual sales channels that it's worth having our product on the shelf.
On the shelf, but in the right place! This is where category management comes to the rescue and our recommendation of a planogram, that is, just placing the product on the shelf.
* Let's assume that in the Golden residential complex in Rzeszow, there is an elementary school next to the store, and the newly created blocks are inhabited by representatives of the "High Earners" generation (Not Rich Yet). What should I do? Use this knowledge to provide a suitable assortment for them-so that both on the shelf and on the display there are, for example, pistachios or roasters.
A little normal. 60% of purchases in the salty snack category are made on impulse (Kantar Study 2018), therefore, the expansion of the face, a greater number of points of contact on the purchase path of the buyer, and often the consumer (parent or child), or point-to-point price promotion will affect the growth of turnover in this store.
Price architecture
An important element in product implementation is also defining its pricing architecture. How do I do this correctly?
First of all: we rely on the profit and loss statement (P & L) and information about how much we, as a manufacturer, earn on each part of our product - that is, what kind of margin we impose. In fact, when we think about a new product, we need to know its price cap. Our customer will be a person who buys premium products? Or maybe a choice of more "economical" solutions?
The Recommended Shelf Price (RSP) or advertising price that will be visible on the price sheet are also elements of a broader strategy and analysis that results from the competitive situation in the product category we are targeting.
A huge contribution to the success of implementation sales department - Kam and PH. They are the ones who start negotiations with merchants, retail chains or store owners, trying to ensure that strategic agreements are respected. Equipped in selling story (that is, arguments in favor of sales and novelty justification – both for the retailer and for the consumer), product samples and pricing strategy start negotiations. Their effect and effectiveness often depend on the current bargaining power of the enterprise, the attractiveness of the offer or the proposed support.
Step V: Activate!
After creating a distribution (physical availability) , we proceed with a series of activation actions that correspond to what we have planned in our project. action plan. And this is the moment of truth…
The product is on the market, we've started communicating through different channels (we're present on digital, TV, and in-store), and we're all asking ourselves: will he accept it? We all believe that it is, but careful monitoring of the action plan and readiness to make possible recovery plans is reliable here.
We got it! - executive summary
As Nielsen data shows, only good. 20% of new products remain on the market for more than a year. However, each introduction – effective or ineffective-provides us with a huge amount of knowledge and a lesson for the future. As the classic says: "reverse analysis is always effective" - in the era of big data, there is always something to work on and draw conclusions from.
Finally, I would like to leave you with a very important piece of advice: even a perfectly designed product isn't everything. It is important to have the cooperation and support of all the departments mentioned at the beginning-from InSight itself to market execution. The process does not end with the product being sold to the retailer and the moment it appears on the shelf. Of course, there is nothing to hide – this is very important, but we must not forget about the best out-of-purchase consumer experience, resale support to the retailer, and product lifecycle..
Junior specialist in Marketing Communications and PR.
He is a graduate of the University of Warsaw and the Main School of Agriculture. We have been in the HoReCa industry for more than 10 years. For many years, he has been associated with the Trip group, Sobienie Royal Golf and Country Club, and the Florentin Restaurant in Warsaw.
She graduated from the Faculty of Architecture of the Warsaw Technical University with a degree in Architecture for the Knowledge Society and Visual Communications at the Polytechnic University of Milan. A specialist in creating a mood. She has gained experience at home and abroad at numerous international seminars (Seville, Lisbon, Florence), fellowships at La Sapienza (Rome), etc. m.in. in Carmi e Ubertis and ADM Milano.
A manager with many years of experience in the cosmetics, food, and children's industries. During his career, he was associated with such companies as: L'Oreal, Samsung, Danone-Nutricia, Unilever. During his professional life, he was responsible, among other things, for the development of e-commerce sales and content in Poland and the countries of Central and Eastern Europe. 
