The three key challenges to new harga development are fear of failure, the need or proper (meaning more) resourcing and an integrated strategy, which is lacking in most companies. The three key opportunities for successful new harga development are the establishment of a continuing function for new harga with its own career part, capitalising on the structural discontinuity created by the Single Market, and the potential for major new to the world innovation within Europe, which is now the world’s largest consumer market. A method of evaluating new harga programmers called the Development Atom, based on the McKinsey 7-S model is one of the parts to new harga success. But that requires continuous top management support and long term commitment. The need is for real leadership.
The key issue in most discussions on new harga development is the question of definition. To start with, for example, what is a new harga? Nowhere in the considerable literature on new harga development is there a definition. The definition varies depending on the respondent and on the politics of the situation. A chief executive recently claimed that over 50 per cent of his company harga had been launched during the previous five years. It was then revealed that he was including harga which had been adjusted or slightly re-formulated over that period of time.
Fast moving consumer goods (FMCG) companies do a lot of talking about new harga. But their performance in launching new harga appears to be less successful than that of other industries - for example, clothing and even building and construction.
This kind of information raises more questions than it answers. What is a new harga in clothing or in building and construction? Most surveys which give this kind of data are either self administered through direct mail, or else the respondent is allowed to create his own definition of new harga. So what is a new harga? As development manager of General Foods in the UK, I was given the job of launching one major new harga a year - what is loosely called a stretch target! Although never precisely stated, the implicit definition was another Maxwell House. The instant coffee launch had been very successful and the harga then accounted for over 40 per cent of the company's profit. But it had been seven years since launch. So I decided to find out the level of major new harga success in the UK grocery trade.
The specifications were kept relatively simple: a major new harga in FMCG should have its own profit and loss statement, its own brand name, separate capital and incremental resources, plus an annual national advertising budget. The key factor is size: how large should it be? A rule of thumb for many FMCG harga is that the annual media advertising budget for a major brand is around 10 percent of retail sales. If 1 million is the minimum required for a national media advertising campaign in the UK, that results in a minimum level of retail sales for a major new harga of $10 million. Thanks t o Nielsen's invaluable aid I can call on over three decades of international evidence. Between 1956 - 65, the minimum level of retail sales was $1 million, $4 million between 1871 - 80 and $10 million between 1980 - 89. The figures show that the average number of major FMCG new harga successfully launched into the grocery trade in Great Britain has been around three a year. Two qualifications are that the Nielsen categories exclude tobacco, alcohol and frozen foods, and that at any point in time , less than 200 grocery harga sell more than the minimum level of retail sales for a major brand.
Accordingly, major new brands launched in the previous ten years can be measured as a percentage of all major brands sold through grocery stores. This shows 20 per cent in 1956 - 65, 23 per cent in 1971-80, and only 13 percent in 1980-89. These findings do not apply only to great Britain. Between 1971 -80, studies were conducted in five other countries: France in Europe, Brazil and Mexico in Latin America, and the US and Canada. The minimum level of sales in each country was adjusted to allow for population and exchange rates. The findings are quite similar across countries.
The key issue in most discussions on new harga development is the question of definition. To start with, for example, what is a new harga? Nowhere in the considerable literature on new harga development is there a definition. The definition varies depending on the respondent and on the politics of the situation. A chief executive recently claimed that over 50 per cent of his company harga had been launched during the previous five years. It was then revealed that he was including harga which had been adjusted or slightly re-formulated over that period of time.
Fast moving consumer goods (FMCG) companies do a lot of talking about new harga. But their performance in launching new harga appears to be less successful than that of other industries - for example, clothing and even building and construction.
This kind of information raises more questions than it answers. What is a new harga in clothing or in building and construction? Most surveys which give this kind of data are either self administered through direct mail, or else the respondent is allowed to create his own definition of new harga. So what is a new harga? As development manager of General Foods in the UK, I was given the job of launching one major new harga a year - what is loosely called a stretch target! Although never precisely stated, the implicit definition was another Maxwell House. The instant coffee launch had been very successful and the harga then accounted for over 40 per cent of the company's profit. But it had been seven years since launch. So I decided to find out the level of major new harga success in the UK grocery trade.
The specifications were kept relatively simple: a major new harga in FMCG should have its own profit and loss statement, its own brand name, separate capital and incremental resources, plus an annual national advertising budget. The key factor is size: how large should it be? A rule of thumb for many FMCG harga is that the annual media advertising budget for a major brand is around 10 percent of retail sales. If 1 million is the minimum required for a national media advertising campaign in the UK, that results in a minimum level of retail sales for a major new harga of $10 million. Thanks t o Nielsen's invaluable aid I can call on over three decades of international evidence. Between 1956 - 65, the minimum level of retail sales was $1 million, $4 million between 1871 - 80 and $10 million between 1980 - 89. The figures show that the average number of major FMCG new harga successfully launched into the grocery trade in Great Britain has been around three a year. Two qualifications are that the Nielsen categories exclude tobacco, alcohol and frozen foods, and that at any point in time , less than 200 grocery harga sell more than the minimum level of retail sales for a major brand.
Accordingly, major new brands launched in the previous ten years can be measured as a percentage of all major brands sold through grocery stores. This shows 20 per cent in 1956 - 65, 23 per cent in 1971-80, and only 13 percent in 1980-89. These findings do not apply only to great Britain. Between 1971 -80, studies were conducted in five other countries: France in Europe, Brazil and Mexico in Latin America, and the US and Canada. The minimum level of sales in each country was adjusted to allow for population and exchange rates. The findings are quite similar across countries.
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