Helping New Products Beat the Odds
April 26, 2012 by Newsfeed Editor
According to the SymphonyIRI Group 2011 New Product Pacesetters report, new products are the lifeblood of the CPG industry, with 22 percent of consumers looking for new products to try. The Pacesetters report is an industry-recognized benchmark analysis of exceptional first-year CPG sales success for newly launched products. The report finds that successful launches and true innovation, regardless of the size of the manufacturer, are rooted in the ability to listen and respond to the consumer and gain an intimate knowledge of their needs and wants.
At-retail merchandising and marketing industry professionals know the kind of odds that new products are up against. They have been helping CPG manufacturers and retailers cut-in new products at the retail shelf for decades now. As the report points out, current economic conditions have made the environment even more difficult and complex.
Among sectors that had high levels of successful launches for 2011 was candy and gum. Successful launches in this sector accounted for 19 percent of food New Product Pacesetters dollars. For non-foods, innovative beauty and personal care products, green friendly household products, and enhanced pet-care products also made a dent.
Successful new product launches aim to bring innovative products to consumers and thereby increase brand loyalty and market share. Huge amounts of development dollars are spent to bring these products to market. Ironically, it is the last few feet to the shelf that often times contribute to the success or failure of a new product. For a fraction of the cost of the product development, assurances can be put into place to remove this variable.
The members of NARMS can help trading partners stack the deck and beat the odds by cutting-in new product on the shelf and making sure any supporting POP or end-cap displays are built within the time frame of a well coordinated launch. Professionally executed sampling and demos of new products have proven to be an effective tool in raising awareness for a new product. These services assure consistent roll-out across multiple geographies and multiple channels, bringing the sales lift and return-on-investment sooner.
Click here to download your copy of the SymphonyIRI Group 2011 New Product Pacesetters report.