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Smarter way to launch new products in the Retail Channel

By admin

October 5, 2021

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New product or collection launch often runs into rough weather by not selling as expected even when supported with a good marketing effort. Also, not every new launch of collection is supported by Marketing and risk here is also sizeable.

Much effort is made to lessen the risk associated with new launches. To a large extent, dealer bookings on a roadshow are taken as pointers and extrapolated to a 100% when such bookings count for about 40% to 50% of the business volumes. At times, Sales teams participate in estimating the volume of the new product/collection being introduced. Despite these measures, hit rate of new launches is far from desired.

One better solution out of this is to test the new products in a representative sample set/cohort of sale locations in real time environment, measure their rate of sale/response, factor in the seasonality at the time of actual launch, and make an informed call about how much to produce in the new product.

Secondly, one can actually introduce new products more frequently in smaller numbers rather than in one go every season. One of our clients would introduce new designs every month (and would choose to advertising support only during peak seasons). This approach allowed them to adjust the quantum of the new design according to OTB (open-to-buy) available, and cut down the risks associated with untested new products substantially..

Write to us if you’d like to learn more.

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