1. IRIs 2016 Review of NPD shows that:
Distribution
Trade Promotion
Only 1 in 30 new products achieve 75% distribution
in their first 12 weeks & only 1 in 10 ever get to
that level
(IRI’s measure of true
product performance)
• Only 20% of new products maintain a SRI above the
average in their sector for 3 years
• New products that underperform based on SRI start
to lose distribution after 9 months
• Highest success rate - Health and Personal Care
• Lowest success rate - Food & Drink and Pet Food
Only 50% of all new products ever reach 36%
distribution
continues to be important
for NPD – but retailers are
promoting less, and
switching away from
multibuys.
What does this mean for manufacturers?
• Understand how other NPD has performed in your category
• Have accurate success benchmarks for your own launch and manage
expectations for the future
• Measure progress during the first weeks of launch to give vital predictors for the
future success of your NPD
• It has become harder than ever to get products listed and promoted in the first few
weeks, so you need all of the collaboration tools available to make sure your
product gets seen instore and online by your target market
Source IRI - a retail and FMCG market intelligence company. Based on c. 3000 product launches from 2013
– 2015 across; food, soft drinks, confectionery, personal care, health and household categories..
No additional restructuring or manipulation of IRI figures is permitted www.iriworldwide.com
IRI NPD studies have historically determined the very best NPD achieves:
75% distribution in first 12 weeks.
High levels of trade promotion, especially multi-buy and/or off-shelf
in first 12 weeks and a deal depth approaching the category average.
Sales Rate Index above that of the average item in its sector.
Sales Rate Index
IRI 2016 Review of New Product Development
in the UK Packaged FMCG Market (excludes Alcohol)
2. 13%
NumberofNPD
launches
Supermarkets are cutting back on
the number of SKUs stocked by an
average of
6.3%
Making it much harder for NPDs to
gain listings
NPD contribution to
overall sales is down
2010 2015
NPDs are vital in driving
category growth
typically launched at a 53%
premium to the category
average, NPDs
encourage trading up,
so less NPD
adversely affects
category growth.
Source IRI - a retail and FMCG market intelligence company. Based on c. 3000 product launches from 2013
– 2015 across; food, soft drinks, confectionery, personal care, health and household categories..
No additional restructuring or manipulation of IRI figures is permitted www.iriworldwide.com
ALL PRODUCTS
Achieving good distribution
is a prerequisite of success but
this is getting harder to do,
average maximum distribution
levels are down by 4.9
percentage points since 2010-11.
Distribution What does success
look like?
Success is defined as selling faster
than the average in your sector.
Success rates in ‘All Products’ have
fallen from 29.6 in 2010/11 to 29.0
in 2013/15
3.4%
2.1%
IRI 2016 Review of New Product Development
in the UK Packaged FMCG Market (excludes Alcohol)
The percentage fall in
the number of new
branded launches in
2015 vs. 2014.