Help Ring in the New

With the New Year but days away, many of us are taking stock of what we want to accomplish in 2010. This is particularly true for CPG manufacturers who will look for new product innovation to drive consumers back to traditional brands. A report on neilsenwire called, “Innovation Creates Opportunities for CPG Growth,” forwards the notion that success in the New Year will be driven by innovation in the form of new products, new formats and new promotions.

According to the Neilsen story, “winning brands will innovate and differentiate.” This is driven by the fact that sales of store brands have jumped by $12 billion or almost 17 percent. The counter attack is to differentiate with new products, flavors, packaging and social media campaigns designed to build rapid awareness.

Rapid awareness of new products must also be accompanied by rapid deployment on the shelves. It just so happens that this skill is something that NARMS members are exceptionally good at doing. The recently released NARMS Survey of At-Retail Marketing Practices found that manufacturers and retailers grade our group of at-retail merchandising and marketing professionals as very effective in speed-to-shelf activities. They also tell us that the faster sales lift from new item cut-ins can increase sales by 15%.

There seems to be two kinds of approaches emerging. The first is the Wal-Mart “Project Impact” initiative which features cleaner isles and limited assortment. The other is an effort to distinguish by offering a wider selection to cater to variety seekers. In either case, the ability to execute at the shelf will be pivotal in success or failure.