Nielsen unveils new product innovation approach
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.”
GMDC delivers nearly 11,000 appointments, calls for a renewed focus on general merchandise
ORLANDO, Fla. — The Global Market Development Center’s General Merchandise Marketing Conference held here earlier this month provided for almost 11,000 appointments, in addition to 169 senior executive conferences that were piloted at the GM event, the association reported Tuesday.
At the event, GMDC launched a preview of a new GM study in conjunction with the consulting group Radian. The initial analysis and insights of the study, "Winning in GM: Trends, Insights & Strategies," is scheduled to be released in fall 2011 and will include information that will establish performance benchmarks, as well as “blueprints” for implementation.
“This study will quantify the value of GM and provide insights, strategies and solutions to grow business and maintain customer loyalty,” GMDC president and CEO Dave McConnell said. McConnell stressed that GM categories are an important part of the discussion around the revitalization of center store.
Rounding out GMDC’s educational opportunities were a series of Sunday store tours where participants were given personal store tours with local management from Winn-Dixie, Sedano’s Supermarket and Publix Sabor. Each grocer offered a unique perspective about how to merchandise to the local clientele within the Orlando area.
Next year’s General Merchandise Marketing Conference will be held in Orlando, Fla., from June 1 to 5.
Publix heads to Knoxville
LAKELAND, Fla. — Publix announced that it will make its Knoxville, Tenn., debut in the Northshore Town Center at Northshore Drive and Pellissippi Parkway.
The 56,000-sq.-ft. Publix will offer conventional items combined with an abundant selection of earth-friendly, all-natural and organic products. In addition to the traditional grocery items, the store will feature signature products and services, including a pharmacy, bakery and full-serve deli, meat and seafood departments.
“We are proud to offer our unique shopping experience to customers in Knoxville,” Publix president Todd Jones said. “We are committed to providing premier customer service and look forward to supporting the Knoxville community as early as third quarter 2012.”
Publix currently operates 30 stores in Tennessee, three of which are in the Chattanooga area and 27 in middle Tennessee. Additional Knoxville area sites will be identified as they are confirmed.