New Product Selector

New Product Selector Calculator Explained:

(a) What is this? A process to assist guide you in selecting a new product.

(b) What does it tell me? This calculator is used to help guide you whether you should accept a new product. It uses seven simple questions to assess whether or not it makes sense for you to acceept a product or not. These are key questions that most sophisticated retailers would ask. It provides a high level of assessment and measurement only. Regard it as a guide.

(c) Why should I use it? This tool will increase the amount of science used in selecting new products. There is however, still an art in selecting a new product, this tool increases the chances of you selecting products that work. Having the right stock increases stock turn, consumer appeal and makes for a better business.

(d) Caution: If you are part of a brand that has a "core" or "madatory" range, disregard this calculator for products that are part of the Head Office program. Similarly, if the product is part of a plan-o-gram you should cease using this calculator. If the plan-o-gram has optional space, use this tool as a guide for products appropriate for the space.

(e) Disclaimer: This calculator is designed for use by Retailers operating in a Fast Moving Consumer Goods environment. It is not designed for specialty Retailers, nor is it designed for Retailers who provide primarily service related products. This calculator should not be used in isolation - you should consider all aspects of the business including but limited to, consumer appeal, competition, your fiscal position, price points and store location. Any decisions made regarding range are entirely your own decision. This tool is simply a guide.

New Product Selector
1. Will this product sell more units per week than the product it replaces? Note: You need to identify which product you to take out (and work out how to exit it!).
2. Will this new product deliver more GP$ than the product it replaces? Note: The GP% can be lower, as long as you can be sure you'll bank more GP$.
3. Does the Supplier have an acceptable exit strategy for you if this product fails? Note: If despite best endeavours the product doesn't sell, how will the Supplier help exit it?
4. Does this product fit with your store/brand strategy and is it desired by your customers? Note: Even if it stacks up on other measures, does it fit with your business image?
5. Is the GP% higher than the category average? Note: You should know this before the Supplier arrives. Check your data.
6. Are there in-store promotions and/or promotional monies to support this product? Note: What deal are we being offered to take the product? There should be ongoing support.
7. If your store is part of a brand/group is this an approved product, or does your wholesaler stock the product? Note: No point agreeing to take it if you can't stock it, or haven't got supply.
Outcome
Helpfull Hint: This only provides a guideline in product selection by asking just seven key questions. Regard this as a basic tool only as there are many other factors in product selection. Some stores may be part of a chain where the head office decides on the product range.