The hot "buzz" in the research industry is innovation. Companies are vying for marketplace/ consumer intelligence that will yield them the next breakthrough idea. IRI's New Product Pacesetters Report identifies that approximately all new products launched in 2016 attained ONLY $11.6 Million (median yr 1 sales) for Food & Beverage brands and $17.6 Million for Non-Food brands. That is SIGNIFICANTLY LESS than the $100 million critical benchmark for measuring the success of new products. So why are more and more new products unable to have the necessary and measured impact that companies are hoping for?
Many of the current new product forecasting software/ models do not have the predictive power, dynamic market gaming and forecasting accuracy to help mitigate this risk.
New Product Forecasting is an art + science and cannot be done in a vacuum or measured against normative benchmarks. Clients have told us that the latter has resulted in misguided forecasts and opportunities to create NEW categories. Our software always understands the "frame of reference" or how your current brands are competing based on purchase behavior (concrete), which product(s) would they substitute the new product for, and the revenue impact of "partitioning" (creating) a new category. It also reveals that if you do have an opportunity for a CATEGORY DISRUPTOR, the precise levels of advertising and promotion needed in YR 1 launch - to which we have seen many brands underspend and not realize the full potential of their new product.
One of the most critical aspects that goes untouched is "market reaction" which accounts for the premise that your competition will react to your move through increased advertising/ promotion on base brands or launching a similar product as a defense strategy. Based on highly advanced mathematical models and statistical mechanics, our software's engine is built like a HEMI® that is proven and tested across many diverse industries.
We have run thousands of new product simulations with great predictive power and accuracy. Now you and your team can run unlimited scenarios and pressure-test your new product's viability in a cost-effective manner. Don't get caught with an inaccurate forecast that leads you down the path to failure.