The journey from concept to product launch is challenging, but rewarding. As a CPG manufacturer, it’s very satisfying to make your first distribution deal and finally see your product on the shelf. Now, you need to stay there.
The next three to six months are critical for justifying your product’s shelf space. Here’s how using data can help maximize your product’s turn rate during this pivotal phase after a successful launch.
#1. Differentiate your product (and your brand) within the category
Your product shares many characteristics with other products in its category, but some attributes set it apart. Analyzing retail sales data across the marketplace, instead of at the single-store level, can help define your position in the category. It also helps identify which of your product’s unique characteristics should be emphasized and used to establish differentiation.
PRO TIP: An extended all-stores combined (xAOC) report, based on syndicated RMS data, provides the market-level perspective you need to identify unique product attributes and opportunities for growth. With these insights, you’ll know whether your CPG product is expanding the category by attracting a new segment of customers and increasing its turn rate. You can also identify new ways to differentiate your product.
#2. Hone your product’s pricing
As price is a key consideration for consumers, it will also be a critical factor in your product’s turn rate. While products that sell the fastest aren’t necessarily the lowest-priced, you should still price products to ensure a healthy sell-through rate. Store- and channel-level sales data can help you determine the best price for your products.
PRO TIP: A top-level analysis of syndicated RMS data allows you to compare your product’s price to competitors’. Digging deeper into this data can uncover more nuanced insights and pinpoint the relationship between price and performance. Discover whether higher-priced items with different characteristics have higher sell-through velocity, the impact of pack size on sales volume and if specific sub-segments can maintain performance at a higher average price point.
#3. Create more powerful promotions
Price is not a consumer’s only consideration. Understanding what motivates customers to make a purchase and how they feel about your products and competitors helps you craft more effective promotions that drive incremental sales and maximize your turn rate.
PRO TIP: Sales data can provide insight into how consumers behave. Science-based behavioral and neuroscience reporting provides an in-depth look at consumer motivations and how to tap into them. Quantifying the impact of consumers’ emotional states on sales can help you create more effective promotional strategies.
How NielsenIQ can help
After a product launches, NielsenIQ’s Retail Measurement Services (RMS) data can help identify key points of differentiation and optimize pricing. Plus, the Consumer Neuroscience team provides insights into non-conscious aspects of consumer decision-making to help you implement effective promotions.