SlideShare a Scribd company logo
1 of 20
Download to read offline
Copyright. Vector Consulting Group, 2023.
Copyright. Vector Consulting Group, 2023.
Acing the New Product Launches in FMCG &
Consumer Goods Segment
Plugging the common loopholes in new product launch strategies
January 2023
Copyright. Vector Consulting Group, 2023.
New Product Launch is key to making New Product Introduction Successful
What mandates a new product launch?
Increased
competition
Changing
Consumer
behavior
Newer
technologies
Freshness of
product
offerings
Diversification
of risks, etc.
Copyright. Vector Consulting Group, 2023.
Market dynamics warrant certain
companies to achieve a minimum of
25-30% of sales from new products.
Success of new products weighs
equally on ideation, development and
launch
Total sale
New
Product
25-30% Ideation Development
Launch
Success
=
A revolutionary product can fail due to poor launch
Copyright. Vector Consulting Group, 2023.
30,000 new products
There are 30,000 new products introduced every year, and 95% fail!
(Clayton Christensen, Harvard Business School Professor and renowned Author)
95% of them fail
Copyright. Vector Consulting Group, 2023.
§ Product became unavailable very soon
§ Vast majority get a chance even to see
the Product (let alone buy it)
Customers could not get the
products in many places
§ Not getting the right
placements (quantity and
type of outlets)
§ Not getting the right
visibility (location, space)
Lack of visibility on the
shelves at retail counters
§ Lack of understanding on
how to use the product
§ Lack of understanding
of products features
(value proposition)
Customers could not get
sufficient product information
§ Missed opportunity, leading
to demise of the product
Delay in addressal of the
feedback received from
the market
New Product Launch Challenges – A postmortem of failed products
Copyright. Vector Consulting Group, 2023.
Copyright. Vector Consulting Group, 2023.
Poor launch attributes to 75% of the failure of new products in retail
Poor New Product
Ideation
Poor New Product
Development
Poor New Product
Launch
High failure rate of
New Product Introduction
Delay in addressal
of feedback received
from the market
Customers could
not get sufficient
product usage/information
Customers could not
get the product in
many places
Lack of visibility
on the shelves of
retail counters
Copyright. Vector Consulting Group, 2023.
A revolutionary product would fail due to poor launch!
If you do not
§ Scale up your supply chain quickly
§ Make your products visible and available
§ Provide good training to your sales team
§ Respond faster to customer issues
Copyright. Vector Consulting Group, 2023.
However, this choice is taken out of the hands of companies
Big-Bang v/s Phased Launch
§ The most important characteristics of new product launch – consumer response to a
new product is uncertain
§ Bigger the territory coverage, the higher would be the demand uncertainty
§ Perennial conflict between big-bang launch vs phased launch
§ Big bang launch allows companies to have first mover advantage
§ Phased launch will enable companies to gage the trend and incorporate changes without
impacting the brand
Copyright. Vector Consulting Group, 2023.
What is the real issue?
Manage new product
introductions well
A
B
1) Forecasts are inaccurate
2) Few markets will give
idea about customer pull
1) Supply lead time is high
2) Potential sales being lost
C
D D’
Launch
pan-India
Launch in
select markets
Protect sales Control inventory
Conflict!
Copyright. Vector Consulting Group, 2023.
Why companies struggle to do Phased Launch?
Ideation Development Launch
Copyright. Vector Consulting Group, 2023.
Delays in developing new products and the threat of missing the launch window lead to hastily
launching the product in as many territories (Big-Bang launch), posing the challenges above!
Why companies struggle to do Phased Launch?
Bigger the launch, the
higher the level of
uncertainty in demand
Sales team needs to be
proportionately bigger to
cater to the scale of
launch
Little time to impart
training to the
sales team and product
USP is not
communicated
effectively to the
potential consumer of
the product
Less focus and time to
respond to consumer
feedback
Supply chain is not
equipped to respond to
the demand fluctuations:
§ Shortages and excess
at the same time
§ Patchy availability
puts off the consumer
§ Poor adoption and
deemed failure of the
product
§ Undertake more new
product
developments
(Negative Vicious
Loop)
Copyright. Vector Consulting Group, 2023.
Big-Bang launch and associated undesirable effects create a vicious negative loop of having to
undertake many NP developments, thereby reducing the success ratio of new products
Plugging the common loopholes in New Product Launch Strategies
Big-Bang / Poor launch adversely impacts New Product introduction success
1. Success ratio of
NP is low
6. High uncertainty
of demand and poor
readiness puts off
the consumer
2. Need to
introduce more NP
in the market
3. Multiple NPs
are taken up for
development
5. High pressure
to launch NP asap
in many territories
4. Delay in NP
development
Negative Vicious Loop
Copyright. Vector Consulting Group, 2023.
Direction of Solution
§ Reducing the demand uncertainty during new product launches will improve its effectiveness
§ The best way to reduce uncertainty for better control over the supply chain, and ensure sales
team readiness, is by launching products in a phased manner
Enabling the company to
check whether the
product is working in
those areas before full
roll-out
Ensuring that the product
is displayed well
(percentage of space
and capital for the new
product)
Having continuous
availability of the new
product at the point of
sale
Reducing the demand
uncertainty by testing the
product in representative
territories and POS
(Point-of-Sales)
Copyright. Vector Consulting Group, 2023.
Direction of Solution - Phased Launch
Plugging the common loopholes in New Product Launch Strategies
Generates capacity to analyse
and respond to feedback
§ There is enough capacity in the
system to respond to the
consumer feedback
§ Helps limit the exposure of
product issues to a small set
of consumers
§ Provides agility to resolve
issues in a timely manner,
yielding higher customer
satisfaction
Aligns the supply chain to the
expected demand
§ Manufacturing capacity can be
stepped-up slowly and aligned
with the demand
§ The distribution channel can
ensure adequate stocks for
display and repeat sales
§ There is no possibility even to
have the buffer capacity to
address the spike in demand
Provides adequate training to
the sales team
§ With this approach, the training
challenges and overheads
reduce
§ A relatively small team to be
trained before launch resulting
in higher training effectiveness
Copyright. Vector Consulting Group, 2023.
This allows the brands to launch in a timely manner reducing the pressure of having to take the
Big-Bang approach in new product launches (Positive Reinforcing Loop)
Direction of Solution - Phased Launch
Entire sales team gets
trained better to
effectively communicate
the product’s
USP/features and help the
customer’s adopt in a
timely manner, resulting in
quickly gaining customers
trust and loyalty
Learnings from one
roll-out to be transferred
to the next roll-out
The sales team already
trained on the product
initially can be utilized to
train other teams
When more and more
products are launched
successfully, the pressure
on the NPD comes down,
and they can work in a
more focused manner on
a more considered
number of new products
Copyright. Vector Consulting Group, 2023.
Phased launch and associated desirable effects create a positive reinforcing loop of having to
undertake selects few NP developments, thereby increasing the success ratio of new products
Phased Launch aids in New Product Introduction success
1. Success ratio of
NP is high
6. Less uncertainty of
demand and good
readiness wins the
consumer trust
3. Few NP are
taken up for
development
5. No pressure to
launch NP asap in
many territories
4. Within-time the
NP development
Positive Reinforcing Loop
2. Need to
introduce few NP
in the market
Copyright. Vector Consulting Group, 2023.
What to expect after implementing the New Product launch strategy?
Around 50% increase in
the contribution of new
products to the overall
sales
Minimum
30% improvement
in the new product
success ratio
Significant increase in
the success ratio of new
product launches
Improved product
life-cycle of each new
product generates more
returns for the company
Copyright. Vector Consulting Group, 2023.
For improving the availability of products across all potential outlets, refer
to https://www.youtube.com/watch?v=pIOCZ13vfeI
For improving the speed and success of new product developments, refer to
https://www.youtube.com/watch?v=3F83tYOtNAs
Thank You!
www.vectorconsulting.in vcg@vectorconsulting.in
Copyright. Vector Consulting Group, 2023.

More Related Content

What's hot

Les enjeux d'une stratégie cross-canal
Les enjeux d'une stratégie cross-canalLes enjeux d'une stratégie cross-canal
Les enjeux d'une stratégie cross-canalNicolas Prigent
 
All You Need to Know About Customer Journey Mapping
All You Need to Know About Customer Journey MappingAll You Need to Know About Customer Journey Mapping
All You Need to Know About Customer Journey MappingRealtimeBoard
 
C1. Stratégie d'influence sur les réseaux sociaux
C1. Stratégie d'influence sur les réseaux sociauxC1. Stratégie d'influence sur les réseaux sociaux
C1. Stratégie d'influence sur les réseaux sociauxCap'Com
 
Reimagine Growth: Execute on your customer journey strategy
Reimagine Growth: Execute on your customer journey strategyReimagine Growth: Execute on your customer journey strategy
Reimagine Growth: Execute on your customer journey strategyCleverTap
 
2020 Myanmar Digital Trends
2020 Myanmar Digital Trends2020 Myanmar Digital Trends
2020 Myanmar Digital TrendsSimon Bailey
 
Omnichannel Customer Experience
Omnichannel Customer ExperienceOmnichannel Customer Experience
Omnichannel Customer ExperienceDivante
 
Onopia - 55 questions pour imaginer votre business model
Onopia - 55 questions pour imaginer votre business modelOnopia - 55 questions pour imaginer votre business model
Onopia - 55 questions pour imaginer votre business modelOnopia
 
Finding The New Top of Funnel: In-Store Physical Retail Media
Finding The New Top of Funnel: In-Store Physical Retail MediaFinding The New Top of Funnel: In-Store Physical Retail Media
Finding The New Top of Funnel: In-Store Physical Retail MediaTinuiti
 
Social media success for every brand the five story brand pillars that turn p...
Social media success for every brand the five story brand pillars that turn p...Social media success for every brand the five story brand pillars that turn p...
Social media success for every brand the five story brand pillars that turn p...MarketingForum
 
Digital Signage for Shopping Malls
Digital Signage for Shopping MallsDigital Signage for Shopping Malls
Digital Signage for Shopping MallsFootfallCam
 
60 Minute Brand Strategist: Extended and updated hard cover NOW available.
60 Minute Brand Strategist: Extended and updated hard cover NOW available.60 Minute Brand Strategist: Extended and updated hard cover NOW available.
60 Minute Brand Strategist: Extended and updated hard cover NOW available.Idris Mootee
 
The Paradoxes of Marketing to Connected Customers
The Paradoxes of Marketing to Connected Customers The Paradoxes of Marketing to Connected Customers
The Paradoxes of Marketing to Connected Customers Cheskalene Sia
 
Forrester Webinar - Individualization Versus Personalization
Forrester Webinar - Individualization Versus PersonalizationForrester Webinar - Individualization Versus Personalization
Forrester Webinar - Individualization Versus PersonalizationZAPinfo.io
 
Red Bull Creative Brief
Red Bull Creative BriefRed Bull Creative Brief
Red Bull Creative BriefBefrank86
 
Faire de la publicité sur Facebook : le guide
Faire de la publicité sur Facebook : le guideFaire de la publicité sur Facebook : le guide
Faire de la publicité sur Facebook : le guideAnais Bon
 
Strategie digitale
Strategie digitaleStrategie digitale
Strategie digitaleAgence-Pi2R
 
What is Comms Planning?
What is Comms Planning?What is Comms Planning?
What is Comms Planning?Julian Cole
 
Educate, Entertain or Convince: Three Beneficial Approaches to Content Marketing
Educate, Entertain or Convince: Three Beneficial Approaches to Content MarketingEducate, Entertain or Convince: Three Beneficial Approaches to Content Marketing
Educate, Entertain or Convince: Three Beneficial Approaches to Content MarketingBrian Honigman
 
Customer Value Management basics
Customer Value Management basicsCustomer Value Management basics
Customer Value Management basicsEric Smith
 

What's hot (20)

Les enjeux d'une stratégie cross-canal
Les enjeux d'une stratégie cross-canalLes enjeux d'une stratégie cross-canal
Les enjeux d'une stratégie cross-canal
 
All You Need to Know About Customer Journey Mapping
All You Need to Know About Customer Journey MappingAll You Need to Know About Customer Journey Mapping
All You Need to Know About Customer Journey Mapping
 
C1. Stratégie d'influence sur les réseaux sociaux
C1. Stratégie d'influence sur les réseaux sociauxC1. Stratégie d'influence sur les réseaux sociaux
C1. Stratégie d'influence sur les réseaux sociaux
 
Reimagine Growth: Execute on your customer journey strategy
Reimagine Growth: Execute on your customer journey strategyReimagine Growth: Execute on your customer journey strategy
Reimagine Growth: Execute on your customer journey strategy
 
2020 Myanmar Digital Trends
2020 Myanmar Digital Trends2020 Myanmar Digital Trends
2020 Myanmar Digital Trends
 
Omnichannel Customer Experience
Omnichannel Customer ExperienceOmnichannel Customer Experience
Omnichannel Customer Experience
 
Onopia - 55 questions pour imaginer votre business model
Onopia - 55 questions pour imaginer votre business modelOnopia - 55 questions pour imaginer votre business model
Onopia - 55 questions pour imaginer votre business model
 
Finding The New Top of Funnel: In-Store Physical Retail Media
Finding The New Top of Funnel: In-Store Physical Retail MediaFinding The New Top of Funnel: In-Store Physical Retail Media
Finding The New Top of Funnel: In-Store Physical Retail Media
 
Visual hammer
Visual hammerVisual hammer
Visual hammer
 
Social media success for every brand the five story brand pillars that turn p...
Social media success for every brand the five story brand pillars that turn p...Social media success for every brand the five story brand pillars that turn p...
Social media success for every brand the five story brand pillars that turn p...
 
Digital Signage for Shopping Malls
Digital Signage for Shopping MallsDigital Signage for Shopping Malls
Digital Signage for Shopping Malls
 
60 Minute Brand Strategist: Extended and updated hard cover NOW available.
60 Minute Brand Strategist: Extended and updated hard cover NOW available.60 Minute Brand Strategist: Extended and updated hard cover NOW available.
60 Minute Brand Strategist: Extended and updated hard cover NOW available.
 
The Paradoxes of Marketing to Connected Customers
The Paradoxes of Marketing to Connected Customers The Paradoxes of Marketing to Connected Customers
The Paradoxes of Marketing to Connected Customers
 
Forrester Webinar - Individualization Versus Personalization
Forrester Webinar - Individualization Versus PersonalizationForrester Webinar - Individualization Versus Personalization
Forrester Webinar - Individualization Versus Personalization
 
Red Bull Creative Brief
Red Bull Creative BriefRed Bull Creative Brief
Red Bull Creative Brief
 
Faire de la publicité sur Facebook : le guide
Faire de la publicité sur Facebook : le guideFaire de la publicité sur Facebook : le guide
Faire de la publicité sur Facebook : le guide
 
Strategie digitale
Strategie digitaleStrategie digitale
Strategie digitale
 
What is Comms Planning?
What is Comms Planning?What is Comms Planning?
What is Comms Planning?
 
Educate, Entertain or Convince: Three Beneficial Approaches to Content Marketing
Educate, Entertain or Convince: Three Beneficial Approaches to Content MarketingEducate, Entertain or Convince: Three Beneficial Approaches to Content Marketing
Educate, Entertain or Convince: Three Beneficial Approaches to Content Marketing
 
Customer Value Management basics
Customer Value Management basicsCustomer Value Management basics
Customer Value Management basics
 

Similar to Acing New Product Launch - Plugging Common Loopholes in New Product Launch Strategies

product devlopment process.pptx
product devlopment process.pptxproduct devlopment process.pptx
product devlopment process.pptxRenu Lamba
 
New product failure and success
New product failure and successNew product failure and success
New product failure and successARUNAYESUDAS
 
Bus169 Kotler Chapter 09
Bus169 Kotler Chapter 09Bus169 Kotler Chapter 09
Bus169 Kotler Chapter 09Alwyn Lau
 
Why your voice of customer program should guide your product development
Why your voice of customer program should guide your product developmentWhy your voice of customer program should guide your product development
Why your voice of customer program should guide your product developmentUsersnap
 
Newproduct launch
Newproduct launchNewproduct launch
Newproduct launchRenjini2014
 
Mtm7 white paper product life cycle analysis
Mtm7 white paper   product life cycle analysisMtm7 white paper   product life cycle analysis
Mtm7 white paper product life cycle analysisIntelCollab.com
 
Winning the new product game
Winning the new product game Winning the new product game
Winning the new product game Manjunath V
 
Growth Strategy for Product Management.
Growth Strategy for Product Management.Growth Strategy for Product Management.
Growth Strategy for Product Management.abhiyantesh verma
 
New product devlopment ppt
New product devlopment pptNew product devlopment ppt
New product devlopment pptRameshwar Swami
 
Brad Hoover "Differences between building a consumer vs. enterprise product"
Brad Hoover  "Differences between building a consumer vs. enterprise product"Brad Hoover  "Differences between building a consumer vs. enterprise product"
Brad Hoover "Differences between building a consumer vs. enterprise product"Agile Base Camp
 
New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010Babasab Patil
 
New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010Babasab Patil
 

Similar to Acing New Product Launch - Plugging Common Loopholes in New Product Launch Strategies (20)

8511 doc
8511 doc8511 doc
8511 doc
 
Mail
MailMail
Mail
 
product devlopment process.pptx
product devlopment process.pptxproduct devlopment process.pptx
product devlopment process.pptx
 
New product development
New product developmentNew product development
New product development
 
New product failure and success
New product failure and successNew product failure and success
New product failure and success
 
New Product Development
New Product DevelopmentNew Product Development
New Product Development
 
Bus169 Kotler Chapter 09
Bus169 Kotler Chapter 09Bus169 Kotler Chapter 09
Bus169 Kotler Chapter 09
 
Understanding the Concept of Product Life Cycle
Understanding the Concept of Product Life CycleUnderstanding the Concept of Product Life Cycle
Understanding the Concept of Product Life Cycle
 
Why your voice of customer program should guide your product development
Why your voice of customer program should guide your product developmentWhy your voice of customer program should guide your product development
Why your voice of customer program should guide your product development
 
Newproduct launch
Newproduct launchNewproduct launch
Newproduct launch
 
Mtm7 white paper product life cycle analysis
Mtm7 white paper   product life cycle analysisMtm7 white paper   product life cycle analysis
Mtm7 white paper product life cycle analysis
 
Toppmmistakes
ToppmmistakesToppmmistakes
Toppmmistakes
 
Winning the new product game
Winning the new product game Winning the new product game
Winning the new product game
 
New Product Development
New Product DevelopmentNew Product Development
New Product Development
 
Growth Strategy for Product Management.
Growth Strategy for Product Management.Growth Strategy for Product Management.
Growth Strategy for Product Management.
 
New product devlopment ppt
New product devlopment pptNew product devlopment ppt
New product devlopment ppt
 
Brad Hoover "Differences between building a consumer vs. enterprise product"
Brad Hoover  "Differences between building a consumer vs. enterprise product"Brad Hoover  "Differences between building a consumer vs. enterprise product"
Brad Hoover "Differences between building a consumer vs. enterprise product"
 
New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010
 
New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010New product development & adoption process ppt @ bec doms mba 2010
New product development & adoption process ppt @ bec doms mba 2010
 
Module1
Module1Module1
Module1
 

More from Vector Consulting Group

Introduction to Vector Consulting Group
Introduction to Vector Consulting Group Introduction to Vector Consulting Group
Introduction to Vector Consulting Group Vector Consulting Group
 
Engineering & Construction Industry Case Study
Engineering & Construction Industry Case Study Engineering & Construction Industry Case Study
Engineering & Construction Industry Case Study Vector Consulting Group
 
Equipment Manufacturing Industry Case Study
Equipment Manufacturing Industry Case Study Equipment Manufacturing Industry Case Study
Equipment Manufacturing Industry Case Study Vector Consulting Group
 
Consumer Goods & Retail Industry Case Study
Consumer Goods & Retail Industry Case StudyConsumer Goods & Retail Industry Case Study
Consumer Goods & Retail Industry Case StudyVector Consulting Group
 
Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...Vector Consulting Group
 
Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...Vector Consulting Group
 
Unlock the hidden potential of the fashion supply chain
Unlock the hidden potential of the fashion supply chainUnlock the hidden potential of the fashion supply chain
Unlock the hidden potential of the fashion supply chainVector Consulting Group
 
Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic
Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic
Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic Vector Consulting Group
 
Leveraging Franchisees for Profitable Growth in Retail: Infographic
Leveraging Franchisees for Profitable Growth in Retail: InfographicLeveraging Franchisees for Profitable Growth in Retail: Infographic
Leveraging Franchisees for Profitable Growth in Retail: InfographicVector Consulting Group
 
Nuggets on Consumer Goods and Retail Supply Chain
Nuggets on Consumer Goods and Retail Supply ChainNuggets on Consumer Goods and Retail Supply Chain
Nuggets on Consumer Goods and Retail Supply ChainVector Consulting Group
 

More from Vector Consulting Group (20)

Introduction to Vector Consulting Group
Introduction to Vector Consulting Group Introduction to Vector Consulting Group
Introduction to Vector Consulting Group
 
What is Theory of Constraints?
What is Theory of Constraints?What is Theory of Constraints?
What is Theory of Constraints?
 
About - Vector Consulting Group
About - Vector Consulting Group About - Vector Consulting Group
About - Vector Consulting Group
 
Tata Motors Limited - Vendors Meet 2017
Tata Motors Limited - Vendors Meet 2017Tata Motors Limited - Vendors Meet 2017
Tata Motors Limited - Vendors Meet 2017
 
About vector consulting group
About vector consulting groupAbout vector consulting group
About vector consulting group
 
Engineering & Construction Industry Case Study
Engineering & Construction Industry Case Study Engineering & Construction Industry Case Study
Engineering & Construction Industry Case Study
 
Equipment Manufacturing Industry Case Study
Equipment Manufacturing Industry Case Study Equipment Manufacturing Industry Case Study
Equipment Manufacturing Industry Case Study
 
Consumer Goods & Retail Industry Case Study
Consumer Goods & Retail Industry Case StudyConsumer Goods & Retail Industry Case Study
Consumer Goods & Retail Industry Case Study
 
Textile Industry case study
Textile Industry case studyTextile Industry case study
Textile Industry case study
 
Auto Industry Case Study
Auto Industry Case Study Auto Industry Case Study
Auto Industry Case Study
 
Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...
 
Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...Understand the differences and similarities between techniques of Lean Manufa...
Understand the differences and similarities between techniques of Lean Manufa...
 
An After Thought on the After Market
An After Thought on the After MarketAn After Thought on the After Market
An After Thought on the After Market
 
Unlock the hidden potential of the fashion supply chain
Unlock the hidden potential of the fashion supply chainUnlock the hidden potential of the fashion supply chain
Unlock the hidden potential of the fashion supply chain
 
Auto Industry Outlook 2012
Auto Industry Outlook 2012Auto Industry Outlook 2012
Auto Industry Outlook 2012
 
Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic
Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic
Leveraging Franchisees for Profitable Growth in Retail Part 2: Infographic
 
Leveraging Franchisees for Profitable Growth in Retail: Infographic
Leveraging Franchisees for Profitable Growth in Retail: InfographicLeveraging Franchisees for Profitable Growth in Retail: Infographic
Leveraging Franchisees for Profitable Growth in Retail: Infographic
 
Nuggets on Consumer Goods and Retail Supply Chain
Nuggets on Consumer Goods and Retail Supply ChainNuggets on Consumer Goods and Retail Supply Chain
Nuggets on Consumer Goods and Retail Supply Chain
 
Nuggets on Auto Industry
Nuggets on Auto IndustryNuggets on Auto Industry
Nuggets on Auto Industry
 
Insights on Managing People by VCG
Insights on Managing People by VCGInsights on Managing People by VCG
Insights on Managing People by VCG
 

Recently uploaded

Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...
Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...
Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...ZurliaSoop
 
Supermarket Floral Ad Roundup- Week 19 2024.pdf
Supermarket Floral Ad Roundup- Week 19 2024.pdfSupermarket Floral Ad Roundup- Week 19 2024.pdf
Supermarket Floral Ad Roundup- Week 19 2024.pdfKarliNelson4
 
Jakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdf
Jakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdfJakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdf
Jakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdfDIGGIT
 
Don’t Get Showroomed- Are you frustrated with showrooming?
Don’t Get Showroomed- Are you frustrated with showrooming?Don’t Get Showroomed- Are you frustrated with showrooming?
Don’t Get Showroomed- Are you frustrated with showrooming?Jasper Colin
 
Supermarket Floral Ad Roundup- Week 20 2024.pdf
Supermarket Floral Ad Roundup- Week 20 2024.pdfSupermarket Floral Ad Roundup- Week 20 2024.pdf
Supermarket Floral Ad Roundup- Week 20 2024.pdfKarliNelson4
 
4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...
4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...
4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...mikehavy0
 
MARCOM Proposal for ACFC Vietnam May 2024
MARCOM Proposal for ACFC Vietnam May 2024MARCOM Proposal for ACFC Vietnam May 2024
MARCOM Proposal for ACFC Vietnam May 2024William Do
 
CAS 5449-12-7 BMK Powder High quality seller
CAS 5449-12-7 BMK Powder High quality sellerCAS 5449-12-7 BMK Powder High quality seller
CAS 5449-12-7 BMK Powder High quality sellerjaylynbenfordqj7681
 
Preview-Product -ZenBasket your ecommerce solution
Preview-Product -ZenBasket your ecommerce solutionPreview-Product -ZenBasket your ecommerce solution
Preview-Product -ZenBasket your ecommerce solutionDeborahnich
 
Báo cáo EBI về thương mại điện tử 2024 ENG.pdf
Báo cáo EBI về thương mại điện tử 2024 ENG.pdfBáo cáo EBI về thương mại điện tử 2024 ENG.pdf
Báo cáo EBI về thương mại điện tử 2024 ENG.pdfA2Z Marketing
 

Recently uploaded (10)

Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...
Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...
Jual obat aborsi Pekalongan ( 085657271886 ) Cytote pil telat bulan penggugur...
 
Supermarket Floral Ad Roundup- Week 19 2024.pdf
Supermarket Floral Ad Roundup- Week 19 2024.pdfSupermarket Floral Ad Roundup- Week 19 2024.pdf
Supermarket Floral Ad Roundup- Week 19 2024.pdf
 
Jakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdf
Jakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdfJakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdf
Jakub Krolikowski (Mirakl), Deja Horvat Zupanc (Big Bang).pdf
 
Don’t Get Showroomed- Are you frustrated with showrooming?
Don’t Get Showroomed- Are you frustrated with showrooming?Don’t Get Showroomed- Are you frustrated with showrooming?
Don’t Get Showroomed- Are you frustrated with showrooming?
 
Supermarket Floral Ad Roundup- Week 20 2024.pdf
Supermarket Floral Ad Roundup- Week 20 2024.pdfSupermarket Floral Ad Roundup- Week 20 2024.pdf
Supermarket Floral Ad Roundup- Week 20 2024.pdf
 
4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...
4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...
4. ☎️Looking for Abortion Pills? Contact +27791653574.. 💊💊Available in Muscat...
 
MARCOM Proposal for ACFC Vietnam May 2024
MARCOM Proposal for ACFC Vietnam May 2024MARCOM Proposal for ACFC Vietnam May 2024
MARCOM Proposal for ACFC Vietnam May 2024
 
CAS 5449-12-7 BMK Powder High quality seller
CAS 5449-12-7 BMK Powder High quality sellerCAS 5449-12-7 BMK Powder High quality seller
CAS 5449-12-7 BMK Powder High quality seller
 
Preview-Product -ZenBasket your ecommerce solution
Preview-Product -ZenBasket your ecommerce solutionPreview-Product -ZenBasket your ecommerce solution
Preview-Product -ZenBasket your ecommerce solution
 
Báo cáo EBI về thương mại điện tử 2024 ENG.pdf
Báo cáo EBI về thương mại điện tử 2024 ENG.pdfBáo cáo EBI về thương mại điện tử 2024 ENG.pdf
Báo cáo EBI về thương mại điện tử 2024 ENG.pdf
 

Acing New Product Launch - Plugging Common Loopholes in New Product Launch Strategies

  • 2. Copyright. Vector Consulting Group, 2023. Acing the New Product Launches in FMCG & Consumer Goods Segment Plugging the common loopholes in new product launch strategies January 2023
  • 3. Copyright. Vector Consulting Group, 2023. New Product Launch is key to making New Product Introduction Successful What mandates a new product launch? Increased competition Changing Consumer behavior Newer technologies Freshness of product offerings Diversification of risks, etc.
  • 4. Copyright. Vector Consulting Group, 2023. Market dynamics warrant certain companies to achieve a minimum of 25-30% of sales from new products. Success of new products weighs equally on ideation, development and launch Total sale New Product 25-30% Ideation Development Launch Success = A revolutionary product can fail due to poor launch
  • 5. Copyright. Vector Consulting Group, 2023. 30,000 new products There are 30,000 new products introduced every year, and 95% fail! (Clayton Christensen, Harvard Business School Professor and renowned Author) 95% of them fail
  • 6. Copyright. Vector Consulting Group, 2023. § Product became unavailable very soon § Vast majority get a chance even to see the Product (let alone buy it) Customers could not get the products in many places § Not getting the right placements (quantity and type of outlets) § Not getting the right visibility (location, space) Lack of visibility on the shelves at retail counters § Lack of understanding on how to use the product § Lack of understanding of products features (value proposition) Customers could not get sufficient product information § Missed opportunity, leading to demise of the product Delay in addressal of the feedback received from the market New Product Launch Challenges – A postmortem of failed products Copyright. Vector Consulting Group, 2023.
  • 7. Copyright. Vector Consulting Group, 2023. Poor launch attributes to 75% of the failure of new products in retail Poor New Product Ideation Poor New Product Development Poor New Product Launch High failure rate of New Product Introduction Delay in addressal of feedback received from the market Customers could not get sufficient product usage/information Customers could not get the product in many places Lack of visibility on the shelves of retail counters
  • 8. Copyright. Vector Consulting Group, 2023. A revolutionary product would fail due to poor launch! If you do not § Scale up your supply chain quickly § Make your products visible and available § Provide good training to your sales team § Respond faster to customer issues
  • 9. Copyright. Vector Consulting Group, 2023. However, this choice is taken out of the hands of companies Big-Bang v/s Phased Launch § The most important characteristics of new product launch – consumer response to a new product is uncertain § Bigger the territory coverage, the higher would be the demand uncertainty § Perennial conflict between big-bang launch vs phased launch § Big bang launch allows companies to have first mover advantage § Phased launch will enable companies to gage the trend and incorporate changes without impacting the brand
  • 10. Copyright. Vector Consulting Group, 2023. What is the real issue? Manage new product introductions well A B 1) Forecasts are inaccurate 2) Few markets will give idea about customer pull 1) Supply lead time is high 2) Potential sales being lost C D D’ Launch pan-India Launch in select markets Protect sales Control inventory Conflict!
  • 11. Copyright. Vector Consulting Group, 2023. Why companies struggle to do Phased Launch? Ideation Development Launch
  • 12. Copyright. Vector Consulting Group, 2023. Delays in developing new products and the threat of missing the launch window lead to hastily launching the product in as many territories (Big-Bang launch), posing the challenges above! Why companies struggle to do Phased Launch? Bigger the launch, the higher the level of uncertainty in demand Sales team needs to be proportionately bigger to cater to the scale of launch Little time to impart training to the sales team and product USP is not communicated effectively to the potential consumer of the product Less focus and time to respond to consumer feedback Supply chain is not equipped to respond to the demand fluctuations: § Shortages and excess at the same time § Patchy availability puts off the consumer § Poor adoption and deemed failure of the product § Undertake more new product developments (Negative Vicious Loop)
  • 13. Copyright. Vector Consulting Group, 2023. Big-Bang launch and associated undesirable effects create a vicious negative loop of having to undertake many NP developments, thereby reducing the success ratio of new products Plugging the common loopholes in New Product Launch Strategies Big-Bang / Poor launch adversely impacts New Product introduction success 1. Success ratio of NP is low 6. High uncertainty of demand and poor readiness puts off the consumer 2. Need to introduce more NP in the market 3. Multiple NPs are taken up for development 5. High pressure to launch NP asap in many territories 4. Delay in NP development Negative Vicious Loop
  • 14. Copyright. Vector Consulting Group, 2023. Direction of Solution § Reducing the demand uncertainty during new product launches will improve its effectiveness § The best way to reduce uncertainty for better control over the supply chain, and ensure sales team readiness, is by launching products in a phased manner Enabling the company to check whether the product is working in those areas before full roll-out Ensuring that the product is displayed well (percentage of space and capital for the new product) Having continuous availability of the new product at the point of sale Reducing the demand uncertainty by testing the product in representative territories and POS (Point-of-Sales)
  • 15. Copyright. Vector Consulting Group, 2023. Direction of Solution - Phased Launch Plugging the common loopholes in New Product Launch Strategies Generates capacity to analyse and respond to feedback § There is enough capacity in the system to respond to the consumer feedback § Helps limit the exposure of product issues to a small set of consumers § Provides agility to resolve issues in a timely manner, yielding higher customer satisfaction Aligns the supply chain to the expected demand § Manufacturing capacity can be stepped-up slowly and aligned with the demand § The distribution channel can ensure adequate stocks for display and repeat sales § There is no possibility even to have the buffer capacity to address the spike in demand Provides adequate training to the sales team § With this approach, the training challenges and overheads reduce § A relatively small team to be trained before launch resulting in higher training effectiveness
  • 16. Copyright. Vector Consulting Group, 2023. This allows the brands to launch in a timely manner reducing the pressure of having to take the Big-Bang approach in new product launches (Positive Reinforcing Loop) Direction of Solution - Phased Launch Entire sales team gets trained better to effectively communicate the product’s USP/features and help the customer’s adopt in a timely manner, resulting in quickly gaining customers trust and loyalty Learnings from one roll-out to be transferred to the next roll-out The sales team already trained on the product initially can be utilized to train other teams When more and more products are launched successfully, the pressure on the NPD comes down, and they can work in a more focused manner on a more considered number of new products
  • 17. Copyright. Vector Consulting Group, 2023. Phased launch and associated desirable effects create a positive reinforcing loop of having to undertake selects few NP developments, thereby increasing the success ratio of new products Phased Launch aids in New Product Introduction success 1. Success ratio of NP is high 6. Less uncertainty of demand and good readiness wins the consumer trust 3. Few NP are taken up for development 5. No pressure to launch NP asap in many territories 4. Within-time the NP development Positive Reinforcing Loop 2. Need to introduce few NP in the market
  • 18. Copyright. Vector Consulting Group, 2023. What to expect after implementing the New Product launch strategy? Around 50% increase in the contribution of new products to the overall sales Minimum 30% improvement in the new product success ratio Significant increase in the success ratio of new product launches Improved product life-cycle of each new product generates more returns for the company
  • 19. Copyright. Vector Consulting Group, 2023. For improving the availability of products across all potential outlets, refer to https://www.youtube.com/watch?v=pIOCZ13vfeI For improving the speed and success of new product developments, refer to https://www.youtube.com/watch?v=3F83tYOtNAs