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New Product Innovation, Pricing & Marketing: Maximize Revenue, Profits

The Consumer Packaged Goods industry, along with all types of manufacturing industries, has become increasingly challenging. Manufacturers find themselves in industries and categories that are highly saturated with messages and SKU's. Thousands of companies are all competing for limited retail shelf space, consumer awareness, and new product trial. Unfortunately, these headwinds mean that more products fail than succeed. 

Consider these statistics cited in an April 2011 Harvard Business Review article titled, “Why Most Product Launches Fail”:

 “Less than 3% of new consumer packaged goods exceed first-year sales of $50 million—considered the benchmark of a highly successful launch.”

“...about 75% of consumer packaged goods and retail products fail to earn even $7.5 million during their first year. This is in part because of the intransigence of consumer shopping habits.”

“...American families, on average, repeatedly buy the same 150 items, which constitute as much as 85% of their household needs; it’s hard to get something new on the radar.”

Here’s the good news: when companies follow proven best practices for product innovation (such as Stage-Gate®), including the right research at each step along the way to launch, their success rates skyrocket. Here are just a few results achieved by companies using research-based product innovation [1]

  • New product success rates are 3 times higher
  • Time to market is 35% faster
  • New products reach profitability targets 77% of the time
  • New product projects are on time and on budget 79% of the time

Simply put, research-driven innovation improves your odds of success every time. Gains in revenue, share and margins are possible for almost every manufacturer in every category. Period.

At FGI we're helping many of the world’s most innovative manufacturers break barriers to growth with winning product concepts, price points that balance demand and margins, and marketing strategies that drive trial and repeat purchase. We replace water-cooler theories and hunches with a proven mix of strategic consulting, marketing research and advanced analytics. This is not guesswork. This is fact-based, research-based innovation and marketing that results in profitable growth.

Here are a few ways we can help you drive profitable growth:

Product Innovation

FGI helps you tap the voice of the customer at every stage of your new product innovation process. From ideation to concept testing and market sizing, research-driven decisions will give you a powerful edge at every step along the way towards launch. Start listening to what your customers are saying and turn feedback into better products and more effective messages. The result? Increased trial, higher satisfaction scores, better word-of-mouth marketing and social media shares, and repeat purchase that grows share.

Product Pricing

FGI helps you find the perfect price for your product, even if it’s in a new category. When you know the exact price elasticity of your product, you can set the exact price to reach your revenue growth and profit goals. Depending on your product’s unique features and benefits relative to your competition, you don't always have to price lowest to be competitive. Our advanced pricing models accurately project what your customers will pay for a product, so you can start maximizing share and margin potential.

Product Launch Marketing

FGI helps you decide on the launch strategy that best communicates your product’s value. We help you pick just the right words and messages that will move your customer to action. FGI’s name, package and message testing removes all the guesswork to give you confidence in every new product launch results. Say goodbye to ad campaigns that waste money and put your launch at risk.

We've done it. And we’ll do it again. Download our case study and see how we're helping leading manufacturers drive profitable growth with research-driven solutions they can trust.

[1] Stage-Gate International.

View Case Study

 

David W. Wilson
David W. Wilson
David W. Wilson

David Wilson has over 25 years of experience helping leading companies improve their marketing results using digital marketing, direct marketing, database marketing, consumer data, predictive analytics and marketing research.