by John Stanley

New products are the life blood of retailing. They are seen as a means of enhancing our lives, and for this reason, are of considerable interest to shoppers. New lines used to be easier to sell. In the present economy, they are more important to the retailer as they create a point of difference, but the consumer is more resistant to purchase. It is therefore important that every supplier work closely with retailers to develop new product launches.

Let’s look at the key issues suppliers need to consider when introducing a new product into the marketplace.

1. Train the sales team in product benefits
The introduction of a new product into a store demands that the sales team be provided with
information about the item. Suppliers should consider providing a fact sheet for the sales team. This fact sheet may need to be a written on paper as well as available online. You do not know how the information culture works on a shop floor.

The fact sheet should include the date of the launch, the origin of the product, the product benefits and retail price if applicable. Ideally, you can do a Webinar with the sales team, which will encourage a question and answer session where you can engage the sales team, leading to more sales of your new product.

2. Help the retailer position the product strategically in the store
The aim is for the customer to see the new product. This may seem obvious, but there are a lot of products in the store, and you need the new product to stand out from the crowd. It has to make an impact. Ideally, you need to negotiate a standalone position in the store near the customer racetrack where you can guarantee full visual exposure.

3. Do not forget the sign
In previous articles, I have discussed the importance of signage, and this is especially important with new products. A new product must be promoted as new, so you need to tell the consumer the benefits of your new product. The word “NEW” is still a major motivator and should be used whenever possible.

4. Engage the consumer
Customers love information and especially information they can share with their friends. If you can source interesting data about the product and its origins you should pass this on. People buy stories, and it is your job to put the story together.

5. Demonstrate
Make sure that the sales staff demonstrates the new product and gets the customer involved as well. The sales person’s job is to bring the product to life; the customer needs to feel like part of the process.

6. Link
The key is to promote the product and the way it fits into the consumer’s experience. You may want to create a competition where you give away the first new product. Make sure when the product launches that you send press releases out to the relevant media and especially local newspapers. Provide talks and demonstrations to customers, and if you can cross network the product with other products in the store, that will help sales.

Why Bother?
Every year thousands of new products enter the retail world; most of them fail. They are placed on the shop floor, gather dust and are then sold off at a reduced price.

New products are the life blood of retailing, but the supplier needs to give them life. To leave it to the retailer would be a disaster.

John Stanley (CSP) is one of the top 10 percent of speakers in the world today, an acclaimed retail consultant and WA Entrepreneur of the Year 2009. The author of several marketing, customer service and retail books, including the best seller, “Just About Everything a Retail Manager Needs to Know,” Stanley’s company is a WA Small Business Champion 2009 – Educational Services. http://www.johnstanley.com.au