This month’s Times & Trends Executive Summary addresses trends in new product benefits from New Product Pacesetters, an exclusive IRI report on many of the factors driving the more successful new products. The focus of this report is on Food and Beverage benefits driving new growth.

Next month’s issue will provide an in-depth review of consumer shopper’s “wellness” spending patterns. We hope you enjoy this issue and look forward to hearing your feedback.

This free summary is also accessible via the GMA Web site  at http://www.gmabrands.com/publications/gmairi.cfm

Technology & Design Raise Effectiveness Expectations.
The 2002 Non-Food Pacesetters responded to consumers’ desire to more effectively and efficiently command the tasks of dealing with health issues, managing our appearance, taking care of pets and minimizing house work. New technologies and designs raised the bar of performance to new levels.

The vast majority (92%) of this year’s non-food Pacesetters are brand extensions. Consistent with prior years, most of these extensions offered “me-too” benefits, rather than features that are completely new. IRI’s data show, however, that manufacturers who invest in developing truly innovative consumer benefits are well rewarded with substantially higher year-one sales.

Effectiveness – enhanced or competitively superior performance – is the focus of most new Non-Food Pacesetters.
In most categories the price of a new product’s entry is raising the standard of performance or the bar of expectations for the category.

 

New functional designs are redefining many category expectations.
New non-food CPG Pacesetters are not just differentiating – they are redefining how consumers look at the category. Teeth-whitening kits. Portable breath-care strips. Disposable kitchen storage containers. Disposable cleaning cloths. New designs, patterns or looks that change category expectations are growing in importance – over one-half of all non-food Pacesetters in the latest report presented a benefit supporting new and different expectations.

Health care new products depend on dramatically enhanced category expectations to stimulate attention.
Many of these take “wonder” benefits from the prescription ranks to non-prescription or OTC ranks.

Beauty care new products are pulsed by lasting, more dependable results.
Longer-lasting technologies are refining the basis of entry in many categories.

New conveniences – driven by new technologies and designs – are behind successful personal hygiene Pacesetters.
Pocket breath strips and do-it-yourself teeth whitening products are generating large returns and energizing mature categories.

Wellness health or beauty care products are effectively presenting solutions to nagging boomer issues.
Over-50 hair-loss, gray hair, aging skin, aching joints and backs, allergies, obesity and diabetes are target issues for new self-care benefits and aids that promise effective results.

New ways to sanitize and disinfect surfaces continue to generate shopper interest.
Cleaning cloths, mops and sprays presenting technological twists on the category leader are creating competitive news.

Shelf assortment and variety becoming a larger factor to house care Pacesetters.
Cleaners with multiple fruit or citrus fragrances are creating more impact at shelf. “One size fits all” does not apply anymore in many non-food categories.

Wellness is also a serious pet care issue.
New Pacesetters take on often-minimized pet issues – tartar, hairball prevention, skin allergies, and overall health or wellness. Pet treats have become functional “wellness” aids.

New brand extensions with “innovative” benefits yield 66% higher year-one sales results than those with “me-too” benefits.
It pays to invest in developing competitively superior benefits throughout the developmental process. While typically only one or two of ten new product launches are “innovative,” the investment is worth it.

 

A new product becomes a Pacesetter if it clears several “size” hurdles:
When a new brand achieves 30 percent distribution we begin counting off 52 weeks of sales. We eliminate any brand that lost more than 30 distribution points or fell below the 30 percent threshold. Each new product must clear a hurdle of $7.5 million in year-one sales to gain the designation of a Pacesetter. The dominant Pacesetter is a new brand line extension or a totally repositioned brand that appears “like new” to the consumer. The study excludes flavor and package-size item upgrades or promotional items.