New Product Introduction

Develop innovation to renew the offer and its attractiveness with a faster market introduction in order to keep a competitive advantage

Controlling the rapid development of the product range is a key factor to successfully creating competitive advantage.

Challenges

  • Frequent range renewal performed on both new products and promotions
  • As much as 20-30% of the range renewed each year, depending on the business sector
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  • Promotional sales can account for as much as 15-20% of volume, depending on the business sector
  • In a climate of strong competition, the ability to rapidly place new products on the market provides a competitive advantage
  • Controlling the industrialization of new products, particularly in terms of their packaging
  • Synchronizing all operations to position products at point of sale in due time
  • This also complicates catalogue management
  • Controlling the end of life cycles and obsolescence
  • Need to rationalize the catalogue
  • Structuring the new products introduction process
  • Identifying a key introduction project manager position; responsible for coordinating the main stakeholders: Marketing Procurement, Production, Logistics, Sales Administration, etc.
  • Defining reverse planning and validation milestones, including go/no-go testing based on an economic profitability study
  • Ensuring the quality of introduction forecasts through a collaborative process and formal validation by each commercial entity
  • Performing a regular review of the management parameters and catalogue
  • Identifying the products affected by new introductions and defining clean-up measures for both the catalogue and related stock
  • Defining the stock policy for new products: which stock or safety period, how to ensure transition to mature product

Good practices

These are based on the ability to both structure and coordinate the introduction process, and correctly forecast the introduction and define the right management parameters for it.

How can Argon Consulting help you?

  • Redefining the process for introducing new products: economic analysis methods, key milestones, role of introduction project manager, etc.
  • Optimizing forecasting processes for new developments: collaborative work, forecasts for similar events
  • Simplifying the product portfolio
  • Optimizing stock: stock sizing and safety period for new products and promos, identification of obsolescence on affected catalogue products