Today’s Group has developed an NPD scorecard to help inform suppliers on how to improve the delivery and execution of new product developments.
The buying group said the success rate of new products was on average less than one in 50, which presented a challenge to independent retailers who often have a core range of about 650 ambient products.
The scorecard is a list of 16 product attributes which includes pack format, outer packaging, case cost, shared margin, price point, and comparative products. It also includes 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 indicates the product is likely to succeed in the channel, while 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. It can also be applied to understand the potential success of existing product.