NEW YORK, March 22, 2007 (PRIME NEWSWIRE) -- As the number of new product launches increases and the marketplace becomes even more competitive, retailers and manufacturers are finding they must engage more collaboratively to find common ground and share success. A new paper released today by the National Association of Chain Drug Stores (NACDS) and prepared by PricewaterhouseCoopers (PwC) is entitled How targeted collaboration between retailers and manufacturers promotes the success of new product launches and addresses the issue of improving the chances of success and profit when bringing a new product to market.
"Both manufacturers and retailers rely on new product launches to drive growth and help them stand out in a crowded market. Yet launches are often hindered by misunderstandings regarding each partner's expectations, abilities and timetables, threatening revenue generation and profitability," says Lisa Feigen Dugal, partner and leader of the North American Retail and Consumer Packaged Goods Advisory practice at PricewaterhouseCoopers.
The four steps identified by the report provide a reliable roadmap of factors, events, inputs and outputs that aid both manufacturers and retailers in their quest to drive growth and market differentiation:
1. Understand: Eliminate preconceived notions of each trading
partner and establish a joint definition of launch success
beyond just sales/volume targets.
2. Commit and Collaborate: Establish detailed milestones and
success criteria and assign specific responsibility and
accountability for each element.
3. Execute: Provide transparency to potential launch issues and
develop contingency planning in advance for likely scenarios to
avoid overreacting to expected events.
4. Review: Sales performance is not the only measure of success.
Devoting time to post-launch analysis establishes a common
perception of the launch effectiveness. As one retailer said,
"We need to migrate away from the launch 'em and leave 'em method
of today."
"While there is no secret formula for a successful new product launch, diligent focus on adhering to this basic four-step framework can result in greater retailer/manufacturer understanding, better utilization of trading partner resources, and increased likelihood of launch success," says Steven C. Anderson, NACDS president & chief executive officer.
Vic Mazzacone, senior vice president Corporate Relations OTC North America, Novartis Consumer Health and a member of the NACDS Advisory Board, added, "Retailers' and suppliers' collaboration in executing these findings within their organizations will help to improve efficiency and effectiveness of all future new product launches."
"The goal of this framework is to provide specific areas in which trading partners can focus their efforts, ensuring that they are investing their time and resources in the dimensions that will have the greatest impact on launch outcomes," adds Matthew Gunbie, partner with PricewaterhouseCoopers. "Improving understanding between all parties involved in the launch will create a sustainable and agile trading relationship that enables better utilization of both partners' resources and increases the likelihood of launch success."
A detailed presentation of this study will occur at the upcoming NACDS Supply Chain and Logistics Conference on Tuesday, March 27, 2007 at 1:00 PM at the JW Marriott Orlando Grande Lakes in Orlando, Fla.
About the National Association of Chain Drug Stores (NACDS)
The National Association of Chain Drug Stores represents the nation's leading retail chain pharmacies and suppliers, helping them better meet the changing needs of their patients and customers. Chain pharmacies operate more than 37,000 pharmacies, employ 114,000 pharmacists, fill more than 2.3 billion prescriptions yearly, and have annual sales of nearly $700 billion. Other members include more than 1,000 suppliers of products and services to the chain drug industry. NACDS international membership has grown to include 83 members from 24 countries. For more information about NACDS, visit www.nacds.org.
About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 140,000 people in 149 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
For more information about PricewaterhouseCoopers' Retail and Consumer Products Industry Practice, visit www.pwc.com/r&c.