Tool Spotlight introduction and agenda [00:05]
How the session is structured, and what will be covered in the innovation overview and platform demo.
A simple framework for innovation types [01:48]
Flavour and variety, packaging and format, functional innovation, disruptive innovation, and regulatory-driven change.
Why packaging and format innovation is so common [05:19]
A look at how most launches are renovations, and why packaging becomes a central lever when costs rise.
What price pack architecture really means [06:01]
Why pack, price, and portfolio relationships must be designed together, not treated as separate decisions.
Why PPA matters right now [07:08]
How inflation shifts the decision logic and why portfolio moves can offset pressure when price increases run into elasticity and retailer constraints.
Pack strategies across the portfolio spectrum [07:56]
Small packs for entry, trial, and affordability. Large packs for stock-up, value seekers, and channel fit. Mid-size packs for convenience and range completeness.
Demo setup: platform structure and workflow [10:37]
How scenarios, analytics, and the decision guide work together.
Identifying pack gaps in the current market range [12:45]
How grouping and segmentation reveals where competitors have sizes that the own portfolio does not.
Scenario 1: introducing a 0.75 litre pack [14:18]
How to add a new product, simulate shopper choice, and quantify own growth, competitor switching, and market expansion.
Interpreting results: volume growth but revenue dilution [16:44]
How a smaller pack can pull volume, increase own units, and expand the market while reducing sell-out revenue.
Scenario 2: introducing a 1.25 litre pack [18:38]
How an intermediate size tends to drive less market expansion, but can improve revenue and be more aligned with retailer economics.
Comparing manufacturer revenue and profit across scenarios [21:29]
Why the best revenue scenario can differ from the best profit scenario, and how the choice depends on the objective.
Retailer lens: revenue and profit impacts [23:01]
How to evaluate whether the proposed pack is viable for the retailer, and why retailer profit can be the deciding factor for execution.
Q&A
Why does a smaller pack grow units but reduce revenue?
The 0.75 litre pack attracts shoppers who want a smaller, more affordable option, and it can pull volume from competitors and expand the market. But it can also shift mix toward lower revenue per purchase, reducing overall sell-out revenue even as unit volume rises. [16:44]
Why can profit and revenue point to different “best” pack choices?
Revenue is driven by what shoppers spend. Profit depends on trade terms, costs, and the margin structure of the new pack versus existing items. A pack can dilute revenue but improve profit if it improves margin per unit or reduces cost exposure. [22:03]
How do you decide which pack to take to a retailer?
The session demonstrates that retailer profit and revenue need to be assessed explicitly. If the retailer is worse off, the pack is hard to list and sustain. A pack that improves retailer economics gives a stronger negotiation story and is more likely to execute successfully. [23:36]
What is the key advantage versus spreadsheet-based scenario work?
The demo shows that multiple pack options can be simulated quickly, including competitor switching effects, market growth, and split outcomes for manufacturer and retailer. This makes it easier to compare scenarios credibly without relying on manual assumptions that are hard to validate. [25:05]
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