Today’s Group has developed an NPD scorecard designed to help its members and suppliers determine the likely success or failure of new products.
The buying group said the success rate of new products is less than 1 in 50 on average, and is hoping the scorecard will help suppliers improve delivery and execution of new product development in the wholesale and independent retail sectors.
Today’s Group, which describes itself as the largest independent buying group of its kind in the UK, has worked with its Supplier Council to produce the scorecard.
It comprises a list of 16 product attributes that include pack format, outer packaging, case cost, shared margin, price point and comparative products; and 11 launch support attributes including marketing campaign, wholesale and retail exit strategy if the product is deemed to be unsuccessful.
Each piece of NPD is scored against each attribute and given either a red, amber or green rating.
A significant number of ‘green’ attributes indicate the product is likely to succeed in the channel, while a large number of amber and red indicators would indicate success in the channel could be challenging.
While intended to inform and advise members, suppliers and central office about new products, it can also be applied to understand the potential success of existing products, added Today’s Group.
“It is the intention that the use of the scorecard as a ‘barometer’ by our supplier base, should help their product development and marketing teams when launching NPD to ensure it has every chance of success in our sector,” said the buying group.