Nielsen: Marks of innovative products
CHICAGO — Innovation. It’s what everybody in the Sands Expo Center is looking for — that kind of traffic-driving innovation that breaks the mold and generates $100 million to $200 million in first-year sales. But what does innovation look like?
“As marketers, this is what you live for,” Taddy Hall, Nielsen SVP innovation shared during a recent webinar celebrating this past year’s innovation success stories. It’s like capturing lightning in a bottle because, in addition to steadily climbing top-line sales, truly breakthrough innovations help charge up a sales team and invigorate the buyer community.
The common threads that tie breakthrough innovation together include distinctiveness (i.e., no line extensions), relevance (i.e., generates enough consumer traction to yield at least $50 million in first-year sales) and endurance (i.e., brands achieve at least 90% of year one sales).
“What we find with breakthrough winners is that they do perform vital, unmet jobs in the lives of consumers,” Hall said. Successful innovations reconfigure benefits to perform poorly addressed jobs, and nailing that kind of consumer fulfillment can actually transform a category. “Building successful innovation offerings is much more straightforward once you understand the consumer’s job to be done,” Hall added.
Last year’s 14 “winners,” culled out of 3,400 new product launches, included the likes of Chattem’s Allegra, Hershey’s Reese’s Minis and Procter & Gamble’s Downy Unstopables.
Hot OTC products at NACDS Total Store Expo 2013
NACDS is hosting the inaugural Total Store Expo conference in Las Vegas from August 10 to 13. Below are some of our editors’ picks of the hot OTC products at the show.
Nico Worldwide launched a homeopathic nicotine equivalent product, called Nic Fix, that’s safe to use while smoking, suppresses nicotine craving and is non-habit-forming, according to the company. The product comes in a single-serving shot format in a lemon drop flavor. One with more active ingredients is available in a minty mouth flavor. According to the company, the product can either be used as a smoking-cessation device or a smoking-substitution product. Smoking cessation is expected to be a hot category with the advent of the Patient Protection and Affordable Care Act as more consumers are incentivized to quit.
Each shot retails for a suggested price of $2.99.
KT Tape Pro
After a successful launch last year, KT Tape recently expanded its core line of kinesiology tapes to KT Tape Pro, which features a synthetic blend vs. the original cotton blend. The new blend helps to better wick away sweat, enabling the pain-relieving product to stay in place for longer periods of time. Whereas the cotton tape lasted for about two to three days, the Pro version lasts between four and seven days, according to the company.
Suggested retail price is $19.99, and the Pro version is shipping now. Each box comes with 20 precut strips of 100% synthetic tape.
Good for the Goose has brought ChopSaver to NACDS TSE — an all-natural herbal lip balm formulated with the pain-relieving agent arnica. The brand was developed specifically for brass or woodwind musicians to relieve symptoms caused by the wear and tear from mouthpiece pressure on their embouchures — the way they form their lips when playing. The product already has a strong following among musicians and comes dermatologist-recommended. With the addition of SPF, outdoor enthusiasts have also embraced ChopSaver Gold, which adds sun protection to its already impressive healing and moisturizing properties.
Shipping now, the product is available at $4.99 each.
Xcentric launched its Novarnica product in the Canadian market in January, and over the first three months generated $3 million in sales. Novarnica is a spray-on arnica product formulated with 20% arnica Montana, the highest amount of the active ingredient currently on the market, the company reported. External analgesics is a category where consumers are always on the lookout for a new pain relieving option that works, opening the door for new ingredients and delivery options.
The 65 ml product retails for a suggested $9.99. The larger 120 ml SKU retails for a suggested $15.99.
Real Relief Asthma Respiratory Care
Homeolab is in the process of launching its Real Relief Asthma Respiratory Care chewable tablets. Since Primatene Mist had been pulled off the market at the end of 2012, there has not been a significant asthma-care brand in the self-care space. Retailing for a suggested $11.99, the chewable tablets help relieve symptoms associated with asthma, including gasping for air, difficulty breathing, wheezing, coughing and excess mucus. Alongside the new asthma care SKU, Homeolab is launching Allergy Symptom Relief and Asthma Respiratory Care Nighttime.
Walgreens to members: Embrace new health paradigm
Team-based healthcare models like accountable care organizations and medical homes are beginning to transform and at last integrate the nation’s sprawling health system.
In a presentation on opportunities to integrate community pharmacy into emerging care models like ACOs, Ron Weinert, VP healthcare solutions for Walgreens, urged NACDS members to embrace the new health paradigm and seize the opportunity it presents.
Ron Weinert, VP healthcare solutions for Walgreens, urges NACDS members to seize opportunities presented by the new healthcare paradigm.
“There still is a huge gap in primary care,” Weinert said. This gap, he added, “is causing a huge challenge in our country, but a huge opportunity for pharmacy because pharmacy can fill the gap and be that extender of care, working with the primary-care provider.”
The health system’s transition “away from fee-for-service to pay-for-performance,” Weinert said, means “pharmacy is no longer competing with primary care for … services like immunizations. When we’re working together to achieve performance in shared savings in an ACO world, then we have aligned incentives and we can work together.”