Whilst everyone agrees that seeing new products on the shelves of our stores is interesting and sometimes even exciting there sometimes appears to be little in the way of overall product hierarchy planning, argues srcg senior client director Andrew Phipps.
A lack of vision is not only evident in our supermarkets; it is clear to see that many other retail environments operate in the same way. The sheer volume of new product development from many of our technology manufacturers has led to shopper boredom and the yawn factor.
Do we need yet another mobile phone, but this time with a 3.2MP camera as opposed to a 3MP camera? Do we need to see a 20″ TV as opposed to one with all the same features but offering a 19″ screen?
The same must be said for food products. How many variations of soft drink do we need? How many different cereals are really necessary? Added blueberries, added sugar, added strawberries, added wheat, added, added, added…what about taking something away for a change? Rationalising the ranges in store and ensuring availability of what customers actually want to buy, as opposed to what we want to sell them
The failure lies jointly with retailers and manufacturers. The retailers need to think realistically about how broad they need their own-label ranges to be.
Is it right that base level convenience players spend time, money and effort creating a premium line? Just who do they think is going to buy into it? If they are aiming at a generic, affluent customer, then perhaps they should spend some time in their stores to see who their shopper actually is. Ah yes, they will say, but we are trying to attract new customers. Well, if I were you I would be trying to satisfy the needs of the customers I actually have.
Manufacturers need to have a target in mind beyond throwing mud against the wall and seeing what sticks. In a bid for self-justification, many NPD departments seem to think more is better; constantly churning skus when surely quality is the watchword. Not necessarily premium quality of product but premium quality of decision making: what need is the product meeting, who is it aimed at and, importantly from the retailer point of view, what is it replacing?
As a retail buyer, the last thing I want to see is yet another deck of slides telling me why your new product is so much better than the one your competitor was showing me yesterday. The fact that you have to explain why it is so good is perhaps an indication that it isn’t at all. Why not let the product speak for itself? Do the research with the retailer. Joint development and a targeted approach will mean a lot less wasted effort and resource.
NPD departments need to have clear commercial targets. That should not include a target number of skus. The targets need to relate to the number of skus that survive launch and become established in the customer’s shopping repertoire.
Develop new products for customers, not for yourselves.
