Golden rules for a Superstar Launch (part 2: #keykpis)

What do companies do to turn their launch into a best seller? Which weighted distribution must we aim for it to be a success? How much is the minimum investment for a 5-star launch?

There is a lot of valuable information and science behind Innovation, but there isn’t a simple and direct manual that can answer most of the basic questions that we, marketers and sellers, face every day.

With a 5 STAR launch you will have to play hard, set yourself ambitious goals, believe it, reinvent yourself, be an intraentrepreneur, fight as if your life depended on it and go out to bite and WIN at the same moment the ball starts rolling.

Your launch is your startup.

#keykpis PART 2

There they go:

THINK BIG

  • Be at 100%. Be ambitious in the Marketing plan and in the Commercial Plan. Nobody will do it for you. You can always rectify.
  • Your superstar launch has to hit the guts
  • Always have in mind the kpis and make a financial BP with 3 scenarios (pessimistic, realistic and optimistic).
  • To objectify the discussion: The figures of the first year have to be between 6 and 10 million billing at retail price. And reach 90% of the first according to the Nielsen barometer TOP 25 Breakthrough innovations in the second year.
  • Donald Trump wrote a book THINK BIG in 2007 … 10 years later he is President of the USA.
    WTF ??? THINK BIG.

DO NOT PLAY WITH THE DP

  • Repeat it every day and at all hours until it stays engraved in the subconscious: DISTRIBUTION, DISTRIBUTION, DISTRIBUTION.
  • MINIMUM 45 WD points IN THE FIRST 3 MONTHS. Have it in writing and in detail per client for further follow-up. Build the distribution point by point.
  • “What is not achieved in the first 90 days; forget it”. Ana Barrio de Nielsen. Don’t let them fool you. MAXIMUM REQUIREMENT.
  • “An excuse has never made us win a game” Toni Nadal
  • If they say “I’m going to get under 30 WD points”; don’t launch.
  • Reserve resources to contemplate some high Listings fees.
  • Rely on your TOP clients.
  • Do not leave this point at random and prepare the best of your plans. Think like them and for them. You need each other.
  • Prepare your staging thoroughly; show them the traction that your launch will have on consumers and offer them a greedy economic proposal that they cannot refuse.
  • Your success goes through working this point well. THE DISTRIBUTION IS YOUR TRAMPOLIN TO THE STARS.

PRODUCT THAT ISN’T SEEN; PRODUCT THAT DOES NOT EXIST > PRODUCT THAT IS SEEN, PRODUCT THAT SELLS

  • The point of sale is key.
  • “70% of consumers know the innovation in the store”.
  • “60% of consumers decide their purchase in front of the shelf”.
  • Keep much of your resources for special exhibitions: You need to have the best of locations and accompany it with stoppers … Work with the distribution well before the launch; explain your project, your motivations, the shared win win … Be completely transparent and let them know their importance in the success of the project and the part that they will be able to capitalize.
  • Coca Cola measures part of the success of its sales rep by the number of different locations where the product is in the centre (stopping points).

PENETRATION, PENETRATION, PENETRATION

  • Without penetration there is nothing else.
  • In a study of 10,000 brands it is confirmed that “PENETRATION is the GREAT METER OF YOUR SUCCESS and can be achieved with money. But the repeat brings something unique: It is the FINAL SENTENCE OF THE CONSUMER. Either you meet their expectations or either you’re out. ” César Valencoso de Kantar. It can be said louder, but not clearer.
  • STOP & THINK at 100 days. Evaluate coldly and sincerely what is happening with your launch. Normally you will have to make major or minor adjustments. Execute them fast and continue towards success.
  • If we do not achieve penetration: We must react because the product is probably not VISIBLE or ATTRACTIVE enough.
  • If we achieve Penetration but not repeat: The product isn’t appreciated and we have a problem.
  • Therefore, I recommend: That you invest a large part of your budget in sampling, cross promo, tastings so that your target can try your product …
  • Between 6% -8% penetration points the first year is a VERY HIGH but achievable OBJECTIVE. Good objective. Data reconfirmed in the majority of successful launches studied.

RELEVANT MARGIN & PVP.

  • It may seem obvious, but if you launch it is to improve the current margins of the Company. It is important that you get along with the Controllers from the beginning.
  • Monitor the retail price from the beginning. It is one of those key variables that is underestimated at the beginning of the projects and that should be one of your key starting points. The studies of price elasticities are very good … but trust your gut and the round numbers.
  • Dedicate time to storechecks and benchmark of substitute, complementary products that can occupy the same “share of stomach” as you.

YOU NEED INVESTMENT. ABSOLUTE YES!!!!

  • You need it to overcome the noise threshold. Think that you face 17,000 references in any supermarket. To stand out… you need money.
  • Large companies with large launches invest like crazy from day 1 and during at least 24 months.
  • We must learn from Fernando Fernández and Josep Peiró, creators of the best food launch of the last 20 years in Spain & Italy: Yatekomo. Investment for 4 years and 360º; focused in its target. With sampling, TV, social media, creating new categories … and especially focused on the point of sale. A marvel worthy of a case study and a beacon for all.
  • Prepare an Marketing and Trade plan with significant investment and overinvestment for large cities.
  • Here are some numbers as a minimum base: 3-4 million Euros per year during the first two years. You will not earn money during these two years, but if everything goes as planned, you will have a DAIRY COW for a long time. So start milking! ;)

What do companies do to turn their launch into a best seller? Which weighted distribution must we aim for it to be a success? How much is the minimum investment for a 5-star launch?

After years of study, relevant reading, intense documentation, double-listening, ping pongs and above all valuable learning and advice that I have generously received from businessmen, consultants, friends, agencies, managers and co-workers … In this article, divided in four parts, I contribute not with a theory about innovation (there are already many) but with the contrasted solutions to the previous questions and to some others that are probably well known already.

* THANKS to those who gave me the first opportunity (and the following …), to those who have supported and pushed me in all this time.
* And always remember: “Winning here was another goal; but in the end it’s also another match too. “Rafa Nadal.
* I’m using an informal tone (sometimes even provocative) with recent examples to get the message across at best.

 

 

About the author: Ramón Pujol | Head of Innovation – PASTAS GALLO
Head of Innovation – PASTAS GALLO
Founding Partner – YESWEPLAY, sun&terrace
Advisory board – HEURA, AECC y ROBIN GOOD
September 10th, 2019 | In Depth

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