T-FAL, a division of Groupe SEB USA, is a leader in the cookware and small electric appliances markets. The company is widely known as the inventor of nonstick cookware, and has since the 1950s introduced a range of unique cookware collections and appliances. With customer satisfaction and innovation always top-of-mind, T-FAL looks to NPD market information to keep abreast of industry trends and maintain an edge among competitors. Here, T-FAL Division Vice President, Marketing, Veronica Lewis, explains NPD’s role in her company’s product development, marketing and sales decision-making.

NPD: What have been the greatest benefits of using NPD market information?

Veronica Lewis: Using NPD market information has provided insight into the cookware category’s evolution, particularly in terms of product materials and channels of distribution. For small electric appliances, the NPD information allows us to monitor the rise of relatively new categories such as indoor grills and sandwich makers, and changes to more established ones, such as new sub-segments in our markets. Of particular benefit to both categories is the use of NPD market information to track dynamics in value vs. volume.

NPD: What kinds of business challenges has NPD market information helped you resolve?

Veronica Lewis: On a macro level, the U.S. cookware market showed relatively healthier trends for value compared to volume. We were interested in deepening our understanding of the drivers of market value and determining whether it signaled a general uptick in retail prices. Using NPD market information enabled us to identify that the market performance traced not to general increase in retail pricing. Rather, the market results had been driven by the actions of a very small number of brands in specific product materials in very specific channels of distribution.

NPD: How is NPD market information used by the T-Fal Division of Groupe SEB USA?

Veronica Lewis: The marketing group uses NPD market information to monitor industry trends and competitive actions and to better understand material trends, especially in cookware, and retail channel evolution. This, in turn, influences our go-to-market strategies and encourages us to tailor tactics to specific retail channels.

The product development group uses NPD information to identify promising new categories to enter; seemingly attractive categories to avoid entering; and regional dynamics reflecting sizable ethnic populations which could signal an environment conducive to niche product offerings.

Of course, the sales organization makes use of NPD data in dealing with their retail customers to support new product presentations, category management recommendations and promotional offerings. The Trade Marketing function uses NPD’s information to evaluate success of ads and promotions to guide future planning. It also uses the data to demonstrate the performance of specific items to help obtain additional placements; to assist retailers in streamlining and realigning their assortments; and to ensure equitable retail representation.

NPD: In what ways has NPD market information been valuable to your business decision-making?

Veronica Lewis: NPD market information influenced a revision in our go-to-market strategy, in acknowledgement of the ongoing shift in cookware materials and retail channels of distribution. A better understanding of the drivers of average retail prices in the U.S. cookware market influenced our pricing recommendations. NPD market data have helped the marketing team to debunk long-held, now out-dated “beliefs” regarding market composition, growth drivers, relative competitive positions, and more.

NPD: Can you provide a specific example of a challenge that NPD’s marketing information helped T-FAL address?

Veronica Lewis: The relative health of the U.S. cookware market in value, despite flagging unit volume, suggested that average prices were increasing. We wondered if manufacturers finally might be raising prices to partially offset the significant increases in costs of goods they heretofore had been absorbing. When we disaggregated the data, we saw that the increase in average prices actually traced to a remix of business from Open Stock to Sets among a handful of premium-priced manufacturers who sold relatively more expensive materials (stainless steel and anodized products) in specialty outlets. Since T-FAL is a manufacturer principally of aluminum products sold in channels other than specialty outlets, we learned that the dynamics that had sustained the U.S. market value were not particularly applicable to the T-FAL business.

NPD: What would you say to manufacturers or retailers considering NPD’s market information services?

Veronica Lewis: NPD account services are as valuable as the information provided. They excel in client support – in being particularly responsive to client inquiries; providing ongoing client training; and working as true partners in helping clients to identify, report and analyze data to maximize its accessibility and actionability.

NPD demonstrates continuous improvement of its offerings, reacting quickly to changes in the marketplace with relevant and useful information. They have kept pace with rapidly growing channels and product segments and continue to expand their coverage.