ORLANDO, Fla. — Nielsen unveiled this week at its Consumer 360 conference its new approach to product development, which is said to improve companies' chances of success when bringing new products to market.
On average, companies spend $15 million on marketing for a new product launch, while some companies spend upward of $60 million. However, new products typically have a 10% chance of succeeding, Nielsen said. The global information and measurement company's new approach identifies 12 different criteria that companies must meet in order to improve new product success rate to 75%. These 12 success factors encompass five main areas: salience, communication, attraction, point of purchase and endurance, Nielsen said.
The criteria are:
Distinct proposition: Does the product offer a true innovation?
Attention-catching: Will the product be noticed?
Message connection: Is your message conveyed in a simple, persuasive way?
Do you have a clear and concise message? Is it conveyed without clutter?
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.
Findability: Is the product where consumers expect it to be? Can shoppers find it easily among the competition?
Point of Purchase
Acceptable costs: What are the cost/benefit trade-offs at the shelf? This could be price, calorie content and usage instructions, among other factors.
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?
“Nielsen is changing the innovation game,” said Vicki Gardner, Nielsen SVP product innovation, North America. “By identifying key criteria every successful new product must meet, we’re helping marketers know where to focus their efforts in new product development and in-market execution. As a result, companies gain a huge leap forward with more actionable advice and better decision-making, and that means better investment of new product marketing dollars.”