April Preston (Executive Head of Food Innovation at Harrods) shares her perspective on how VYPR is helping businesses to speed up the NPD process, optimise success rates and increase sales from applying greater intelligence to FMCG NPD and innovation to steal competitive advantage.
According to this year’s BDO Food and Drink Survey, 92% of manufacturers stated that NPD will be the most important factor determining revenue growth, with 66% of respondents looking to technology and automation to improve efficiency. There are two key challenges that need to be considered in this context: 1) finding the right tech to streamline your NPD/EPD process and 2) taking the right steps to better assure certainty of NPD performance. Here’s how we can help.
According to Nielsen, 3 in 4 new SKUs fail to generate £100K sales in their first year of trading. The UK’s top 4 retailers have delisted at least 7500 SKUs in the past year and the number of branded and private label launches is decreasing. According to the latest Newton report, discounters with just 1,350 SKUs are convincing customers that they have more innovative products than at a big four supermarket, which averages closer to 35,000 SKUs. Find out how VYPR can help you to future proof your listings.
The pressure on FMCG retail, caused (in part) by Brexit is undeniable: margins are under pressure and risk aversion is creeping in; all inevitably leading to one thing: downwards pressure on budgets. The need to commercially prove ROI has just stepped up another gear, as marketing, research and innovation budgets are often a) the first and easiest to be cut or challenged because b) they are the hardest areas where ROI can be proven. Here are 5 steps you can take now to protect your position, save money and prove ROI.
VYPR brings you the latest thinking from pioneers in FMCG product innovation. This week, we review the latest research from think tank Newton Europe that finally puts a staggering £3bn opportunity cost on branded and own label product developers from ineffective development processes. According to Newton, the wasted cost is largely determined by an accumulation over time of 1000s of product changes – and failing, antiquated processes – that incrementally add production cost with little value added to either the business or customer.
Having worked in the FMCG sector for 15 years – in both retail and manufacturing – we founded VYPR to close a huge product intelligence void in the industry. For those people charged with bringing new and revised products to market, there is a tangible lack of intelligence to give them a deep understanding of what impact those products might have when they launch, as well as what they can do to improve those products’ chances before they launch. Scarily, the vast majority of manufacturing clients that we talk to at VYPR have no clear idea on what their ROI is when it comes to innovation. Many CEOs of the companies we work with think at best it’s neutral. At worst, they are making substantial losses when they factor in all the costs required to get these new products on shelf. So, what can we do right now to change this?
This week, we’ve tested some of the new and imaginatively named products hitting our stores: Gigglewater Secco (prosecco in a can), Honest Tea, The London Essence Company Low Cal/Low Sugar Mixers Range from Britvic, Prohibition Brew from Budweiser and Mincepie Popcorn from Mackie’s. It can be difficult to decipher what is truly driving purchase behaviour in store and the results suggest that we’re perhaps asking too much of consumers when making decisions.
Split Testing, also known as AB Testing in software development circles, is something that the FMCG industry is yet to embrace. A simple definition of Split Testing is comparing 2 different versions of the same thing to see which performs better. Software Developers use it regularly to test slightly different versions of the same feature to see which one is more impactful. In their world, they create two different ...
According to McKinsey, 75% of new products fail in their first year. here's a few thoughts from our consultants on how to avoid the pitfalls:
No clear brief. NPD for NPD’s sake without clearly defining the objectives is a waste of everyone’s time. It's vital to set a clear plan at the outset, the objectives should include learnings from the previous development. So, planning for next Christmas must start with the take outs from last Christmas.
Losing sight of your end user. This can be easy to do when there are developers, designers, marketers and agencies to please. It is vital to always focus on a clear idea of your core customer and the problem you are helping them solve. Cosmopolitan is a strong global brand with magazines distributed in more than 100 countries but in 1999 they made a rather bizarre decision to brand and sell yogurt. Needless to say, the yoghurt buying public preferred...
Every business is different but successful product performance is dependent on a few simple, yet often overlooked principles. Here's some of our thoughts on what makes great product performance work.
1. Define the problem your product will solve or the gap in the market it will fill. All successful new products are a response to a consumer problem. Make sure that your idea is something consumers are looking for, rather than innovation for the sake of it. After 250 years in the spirits and beer business, Diageo has recently recognised the opportunity in non-alcoholic drinks...