With two-three years worth of NPDs hitting shelves simultaneously, how do you prioritise?
This is a breakdown of each NPD’s sales in year two when compared to year one – are they growing, or shrinking?
NPD Survival Rates: Y2 performance, Total Grocery
Kantar FMCG Purchase panel, Year 2/3 Survival Rates Analysis based on 5 years of data up to 18th April 2021
Dead = <10% of Y1 sales value, Dying = 10-50% of Y1 sales value, Declining = 50-99%, Growing = 100-199%, Flourishing = >200%
Questions you should ask when considering NPD
The key behind any NPD’s success is for a manufacturer to have a clear objective in mind before it even comes to ideation. The answer to each of the below questions are critical to any NPD development:
- What is the role of my NPD? Is it to generate long-term growth or a short-term win?
- Am I trying to grow my share, the category, or just share of attention?
- Am I innovating in a market ripe for growth?
- Have I identified a specific person’s need or a changing consumer context I am addressing with this?
- How is it meaningfully different to the competition?
- Am I innovating in a connected way? Does it build upon my brand?
Finally, thinking about limited editions? With 2022 looking likely to be a bumper year for NPD, expect limited editions to take a back seat – there’s no need for new news products when there are a dozen more potential core SKUs waiting in the wings.