10 Steps For A New Product Launch

The 10 Steps outlined below are what it takes to launch a new product successfully.
1) Consumer Strategy
2) Target Customer
3) Trade Channel Considerations
4) Organizational Priorities
5) Prodcut Development
6) Consumer/Operational Testing
7) Regulatory/Labeling
8) Packaging Design
9) Marketing Plan
10) Assessment
Over the next posting I will discuss each step in detail.

Forecasting-Ways to Test Reasonableness and Success For New Products

I have worked with clients and we reviewed new product forecasts with their major accounts. In the process of this review I was testing for reasonableness of the weekly forecast based upon the intial roll out quantity and the annuallized weekly forecast. Typically a ratio of between 4 and 8 should be the answer received. If the answer is below four than the answer needs to be checked against other items being sold to this retailer to see what their turnover rates are, if they are all above four than the new item forecast shousl be questioned as to why and will there be a potential loser in this product. If the answer is over eight then the same test should be performed and depending on the answer the forecast should be reviewed. If for some reason the answer is over 20 turns as it was with one item we reviewed then other questions must be asked. They must be asked because turns in excess of 20 will mean a great many empty shelves and lost sales at the retail level unless there are multiple facings of the product and therefore the forecast maybe accurate but the number of turns needs to be reduced.
As a double check of the forecast and assuming your comapny can receive P-O-S data there should be a correlation between the retail sales after a few weeks and the "final" level reached for the product. Determining this correlation and quickly being able to determine the "final" sales figures will help in ordering more product sooner or the cancellation or delay of product already ordered. Having these models will go along way to having better inventory turns and less closeouts.

Are you sure they will come

One of the major mistakes that an extrepreneur and company can make is to over price a product or price a product against the wrong competition. The selling price to consumers should be based upon research of the marketplace you want to sell into. If you do your research at Neimann-Marcus for expample then don't go to Walmart to sell your product at the price points found. This point can best be seen from the experience I had with a company that had an organization product that was priced compared against the high end of the marketplace and then began selling into the mass market arena. Obviously the high end or specialty retailer's price points and volume vary greatly from the mass merchants and the end result was what you would have thought-little acceptance by buyers and less acceptance by the consuming public. Therefore, if you want to have a chance at success you must research the marketplace that you will sell into and be competitive with the products that are already there and your uniqueness will then have a chance to succeed. If you would like help in getting products to market properly contact us at www.bhrglobal.com

Basic Mistakes of Inventors

There are a number of mistakes typically made by inventors of "new" products. Today I would like to explore some of these mistakes and some ways to he;p avoid them. First there are unrealistic goals or expectations that come from one's invention or idea. It may be a great idea but without hard work and many hours it will not make you a millionaire or based upon the sales expectations it cannot. The second mistake reveolves around not researching the marketplace. I have mentioned in previous writings about a pet product that someone :invented" that a trip to a major pet retailer would have shown the person the product was already there and unless his idea could improve the products function at a more advantageous retail price, he could have stopped his concept at that point. The third major mistake is the assumption that everyone will want to buy your product or idea. Here you must assess the size of the potential marketplace you are going after and then after doing reasonable research into that marketplace determine if the proiduct is salable. Research does not include asking friends and family about your product, you must get a reasonable amount of independent input from your expected target market. Remember for each year of your target market in the USA there are about 3.5 to 4.0 million people up to the age of 50. Depending on your product and target marketplace you can determine the gross number of potential customers and then begin to do your homework and figure out the sales units and then dollar possibilities. All of this assumes the right price point and the ability to attract retailers to the product will be in your future. These are just three of the major mistakes that are made future postings will cover others and there are more trust me. If you want to learn more about getting your product into the retaikl arena and help in all phases of the product development cycle from finalization to sourcing to sales contact me at BHR Global Associates, Inc (Bruce Rubin) at bhrglobal@aol.com or call me at 267-664-5165.

Best Time To Review and Cut Costs

Time to review and cut costs ALWAYS

In these troubled times when most companies panic and look to cut costs inways that should be encouraged and used now and when times are good.
It is time to partner with vendors to review what costs can be cut in both operations that can be passed on in cost decreases to the customer and more profits for the vendor.
It is time to question lead times and order quantities. It is time to discuss payment terms and live up to them.
It is time to review the costs with all vendors BUT on a systematic ABC analysis approach to the problem.
It is time to weigh the cost of the product versus the cost of carrying the inventory if imported.
It is time to question everything that is not nailed down and not take NO or CAN'T for an answer.
Those companies that have or will implement not only a cut cost now policy BUT a long term working relationship with vendor partners that keep costs in line ALL the time.
Remember when times get better the cost savings and committments that are implemented NOW will pay extra dividends then.
Bruce Rubin