from staff
Millions of dollars are spent on developing and launching new consumer products each year but the majority fails, according to The Nielsen Co.
The global consumer tracking company released an approach that it said revolutionizes the traditional methods and can improve the likelihood of new product success to 75 percent.
Companies spend on average $15 million on marketing for a new product launch, with some spending more than $60 million, according to Nielsen. It said that new products generally have a 10 percent chance of succeeding.
Nielsen, based in New York, identified 12 criteria that every new product must meet in order to succeed, with specific recommendations about what companies should consider before the new product launch to increase the chances of success.
It claims its approach, based on tracking 600 product launches and testing 20,000 initiatives, can improve the success rate to 75 percent.
Nielsen’s 12 factors encompass five main areas:
Salience
• Distinct proposition — Does the product offer a true innovation?
• Attention-catching — Will the product be noticed?
Communication
• Message connection — Is your message conveyed in a simple, persuasive way?
• Do you have a clear and concise message? Is it conveyed without clutter?
Attraction
• Does your product have a substantial need/desire? Is it solving a problem or meeting consumers’ needs?
• What is your product’s advantage? Is it better than others currently in the marketplace?
• Credibility — Are your product claims believable?
• Acceptable downsides — (Typically related to side effects for over-the-counter products).
Point of purchase
• “Findability” — Is the product where consumers expect it to be? Can shoppers find it easily among the competition?
• Acceptable costs — What are the cost-benefit trade-offs at the shelf? This could be price, calorie content and usage instructions, among other factors.
Endurance
• Product delivery — Did you meet or exceed consumers’ expectations? Are you delivering on your product’s promise?
• Product loyalty — Will consumers continue to purchase your product in the future?