By Lee McAllistair of ShopAbility for TorchMedia ‘Illuminate’ June 2008 edition
New product development can be one of the biggest drivers of growth and profit, or it can deplete your time, energy, capital and reputation (with retailers as well as shoppers). So, what tips the scales either way?
#1 What problem are you solving?
Shoppers want solutions, not products. Your value proposition needs to offer a compelling and unique solution to something your shopper wants fixed.
It might be an old and well known problem (like dinner tonight), an increasing ‘problem’ based on a trend (like hassle-free grooming and skin care for him) or you may have identified a completely new problem that is currently not being fixed by any of your competitors. A couple of interesting examples in recent years: DIY pest control guns and BBQ cleaning wipes. Both were developed via looking at behaviour and identifying product gaps that haven’t been filled. People clean their BBQs, yet there were no convenient BBQ cleaning products on the market. So Selley’s stepped in. People have problems with pests, but calling pest control companies is a big, expensive step, and potentially nowhere near as much fun as running around like Indiana Jones. Enter Baygon DIY pest control kits.
Determining with crystal clarity exactly what problem your new product idea will solve is the most important step you can take in your path to successful new product launch.
#2 Who are you solving it for?
Keeping in mind that shoppers and consumers are not always the same (think pet food and kids products for starters), you need to be clear on who benefits from your new product / solution.
o What is the benefit to the end-user?
o What is the benefit to the shopper – the person in store parting with their money?
o Who are both of those people likely to be – what sort of people (age, geodemo, life stage, lifestyle, values etc.)?
o What kind of household are they likely to be in? What are the implications of that for pack, size, format etc (apartments versus McMansions)?
Map your product / solution to your consumer (end-user) and shopper profiles. Make a list of potential marketing implications. This map will be developed further in a moment.
#3 Where do you find them?
Where are your target shoppers most likely to be shopping? This will help you to determine your optimum channel mix for your new product.
What else besides supermarkets do you need to be thinking about? Pharmacies? Liquor stores? Petroleum & Convenience?
To answer this question, go back to the problem you are solving. Where would you look for a product to solve that problem? What sort of shopper ‘mission’ would you be on? E.g. top up shop, emergency item shop, impulse buy etc.
Take your map and extend it to include channel choices. Product X appeals most to Shopper types 1 & 2 and they are most likely to look for it here, here and here because they are already there for reasons a) and b).
#4 What does in-store need to look like?
For a new product launch to succeed, the in-store execution needs to:
- clearly communicate a solution,
- be easy to find and notice amidst the clutter,
- be interesting and engaging enough for the shopper to linger; and
- be as simple as possible. Too much choice is confusing.
Furthermore, it needs to do this in ways that are relevant for how shoppers (and retailers) behave in that particular channel. What works in a supermarket may be very different to what works in Pharmacy, for example. So it’s about thinking through and linking your:
1. Occasion – shopper and consumer (to your)
2. Brand (to your)
3. Pack (to your)
4. Price (to your)
5. Channel.
In the process, thinking about all the drivers across Point of Purchase such as range, space and layout (where should it be located? Next to what?), visibility and merchandising, promotion etc.
The key is simulating an in store environment before making major marketing decisions, so that you can make sure it works in context.
For example, packaging. A good idea is to do shelf simulations – ie your new product/pack laid out in the shelf as it currently stands – to see if it actually stands out. Looking at the packaging of your fantastic new widget in isolation is not enough, as the reality of instore is that shoppers will be seeing it amongst approx 100 other SKUS in your category. Consumer and shopper research companies can help you with in-store shopper simulations – placing your new product/packaging on shelf and seeing if shoppers notice it.
Think about how you can use levers such as Retail Media as directional aids to help the shopper find your solution to their problem. Think about their shopper journey in store and where on that journey are the most important touch points to communicate with them. Retail media needs to have a strong call to action. Simply putting ‘New’ and the price point is not enough. ‘New. Great for XXX purpose. Product name. Special $YY’ is better.
The acid test is:
Will a shopper with this problem to solve find our product? Is it an obvious place to look for that kind of solution? Are we communicating the solution clearly, simply and in an engaging way??
#5 What does before-store need to look like?
Back to the shopper journey – where are these people likely to be coming from? Home? Via car? Car pack? Walking through the shopping mall?
Map out various shopper journey scenarios for each of your shopper profiles and shopping occasions. Then, prioritise the points along that journey as a focus for communication.
You may decide that ‘in the home’ is less important than ‘in the car’ for the particular problem your new product solves, or the other way around. This will affect your media spend: more or less on TV versus billboards etc. At each communication point, focus on how your product solves a problem.
#6 What does after-store need to look like?
One of the keys to successful new product launch is to encourage repeat usage. How does your packaging serve to remind the shopper / consumer of the benefits of your solution / product during in-home usage? Is it clear to see when the product is getting low and needs to be replaced?
New product development and launch can be an exciting time of growth in profits and in brand value. The key to avoiding spilt milk is crystal clarity on who your shoppers are and exactly how your product is a solution to their problem, need, or occasion. Then, communicating that solution benefit simply, effectively, and OFTEN, particularly where it counts the most – in store.
So, time to let the cat out of the bag, then?
