Launching a New Product in 2020? Read This First.
New product launches are the lifeblood of CPG companies. In the Chinese market, tens of thousands of new products hit store shelves, yet up to 70 percent fail within 18 months. Why do CPG brands still struggle when introducing new products to consumers?
A report from Nielson outlined four major challenges that shed some light on the lack of long-term success:
- Rapidly changing consumer demand (67%)
- Difficulty in creating strategic products with sufficient market potential (54%)
- High cost, but low return on investment (44%)
- Faster product launching speed (33%)
Unlike other markets, China has a vast territory with more than 2,200 cities. Plus, there are more than 3.2 million retail stores operating in a market landscape under constant change. For a new product to stand out (and survive) in such a complex market, CPGs clearly need a more hands-on approach when it comes to understanding consumer demand, store layouts, category trends by region, and predicting consumption potential.
This is achievable by leveraging your field force.
Field reps and merchandisers should be tasked with closely tracking in-store sales performance to continuously help the company fine-tune targets, optimize offers, understand regional differences, and adjust local marketing plans.
eBest Mobile developed its retail execution solution specifically for brand ambassadors on the front lines. By arming field reps with retail execution tools that provide real-time insights, CPG brands are better equipped to effectively respond to market demands, retailer demands, and perhaps most importantly, consumer demands.