Leveraging HIVERY Curate for New Product Innovation with Precision and Impact
In today's highly competitive and volatile retail landscape, introducing new products is fraught with risk and uncertainty. The stakes are high for both Consumer Packaged Goods (CPG) manufacturers and retailers when considering new additions to their product assortment. HIVERY Curate offers a cutting-edge solution, employing AI and applied mathematics to mitigate these risks and optimize new product rollouts. This use case examines how HIVERY Curate can facilitate new product innovation by providing actionable insights, enabling effective sell-in strategies, and assisting in damage control situations.
Phil, a CPG Sales Account Executive, is looking to introduce a new beverage variant into big-box retailers like Walmart and Target. However, retail buyers are wary of taking risks on new, unproven products. They are willing to test the new product in at least 500 stores as a starting point. Phil needs to:
- Quantify the potential performance of the new product.
- Identify what existing products may need to be downsized or removed to make space.
- Evaluate the overall impact of this new addition on the existing portfolio.
The HIVERY Curate Solution
Identifying and Forecasting New UPCs
HIVERY Curate identifies the "new" Universal Product Codes (UPCs), including all relevant details like product names, dimensions, and subcategories. The system then finds a "sister UPC"—a product with similar behavior in the market. For example, if the new product is "Fanta Blackberry," it might be compared to "Fanta Cherry." A forecast is then generated based on this sister UPC, enabling HIVERY Curate to learn the possible performance of the new product.
AI-Driven Scenario Planning
Phil uses HIVERY Curate to run an AI-driven scenario that "forces" the new product into at least 500 stores. The AI model not only shows that the new product could successfully earn space in 1,500 stores but also provides data on:
- Which existing products might need to be downsized or removed to accommodate the new SKU.
- The overall impact of introducing the new product on revenue, churn, and other key metrics.
If the distribution inventory can't meet demand, HIVERY Curate can run another scenario to determine the impact of reducing the distribution by a certain percentage. It identifies specific stores where products can be taken out with the least impact and suggests alternative products that should go in their place to minimize damage.
- Precision in Planning: HIVERY Curate provides Phil with quantified predictions, enabling a more effective and precise sell-in strategy.
- Operational Efficiency: The tool suggests what should be downsized or removed, ensuring optimal use of retail space.
- Risk Control: HIVERY Curate helps make informed decisions to minimize negative impacts in unforeseen circumstances.
By leveraging HIVERY Curate, Phil can confidently pitch the new product to retail buyers, backed by data-driven insights, thereby reducing risk and increasing the likelihood of a successful product launch.
Request a demo of HIVERY Curate and see how HIVERY Curate can help your role as a Sales Leader.
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- New Item Performance Analysis: How HIVERY Curate Guides Your Decisions
- Interactive Assortment Planning: Using AI-Driven Visual Insights to Make Difficult Decisions
- Bridging the "Say-Do" Gap in Retail: How AI Transforms Decision-Making
- Webinar: Stated Behavior vs. Actual Behavior: How AI Can Bridge the Gap