The Today’s Group of wholesalers, together with its Supplier Council, has developed an NPD scorecard in response to challenges raised by suppliers on how to improve the delivery and execution of new product developments within the wholesale and independent retail sectors. The card was announced yesterday (December 20).
A Today’s spokeswoman said: “It is well-known that the success rate of new products is on average less than 2% (though this will vary by category) which presents a challenge to independent retailers who often have a core range of ambient products circa 650 lines.”
The scorecard is a list of 16 product attributes which includes; pack format, outer packaging, case cost, shared margin, price point, comparative products etc. and 11 launch support attributes including marketing campaign, ATL and BTL levels of activity, wholesale and retail exit strategy if the product is deemed to be unsuccessful. Each new product development is scored against each attribute and is given either a red, amber or green rating.
A significant number of “green” attributes indicate the product is likely to succeed in the channel, whilst a large number of amber and red indicators would indicate that its success in the channel could be challenging.
The scorecard is intended to both inform and advise members, suppliers and central office of the favourable or non-favourable attributes of new products, however, it can also be applied to understand the potential success of existing product.
“It is the intention that the use of the scorecard as a ‘barometer’ by our supplier base, should help their product development and marketing teams when launching NPD to ensure it has every chance of success in our sector,” continued the spokeswoman.
“At a recent brand plans presentation, a supplier indicated that they saw significant value in using the scorecard and will be launching it internally to sense check their offering to the channel.”