New product messages aren't getting through

According to research in the United States conducted by Information Resources Inc., New Products magazine, comScore, and Schneider Associates, more than 75% of 1,000 American consumers couldn't recall a new product introduced in 2007. According to the research, only 23% of the respondents could recall a new product introduced in the past year.

"The [new product] message isn't getting through," says Joan Holleran, editor of New Product magazine. "It's like consumers are saying: 'Could you spend a little more on research and development, instead of just creating line extensions?'"

When presented with a list of new products introduced in 2007, Apple's iPhone topped the list with a 37% recall rate. Second on the list was Microsoft's introduction of the Windows Vista operating system. No. 3 was Febreze-branded candles, while the fourth most-recalled was Domino's Oreo Dessert Pizza. No. 5 was the over-the-counter diet aide Alli. Rounding out the top 10 (in order) were: Oreo Cakesters, Diet Coke Plus, Subway Fresh Fit Meals, Motorola's RAZR 2 and Listerine White Strips.

"Companies need to be more savvy about marketing their [new] products," Char Partelow, SVP/business and consumer insights at IRI, tells Marketing Daily. "You need to be where they are."

In a similar survey last year, 81% of the respondents could not think of a new product introduction for the previous year. While 2007 results show some improvement, Holleran and Partelow attribute much of that to media buzz surrounding the iPhone launch last summer. "The iPhone started generating buzz four to five months prior to its launch," Holleran notes.

Using multiple means to get the message across

Although the big takeaway from the research is that few consumers remember a new product long after launch, there are some trends to be gleaned from the Top 10 assisted responses. For instance, most of the memorable new products last year were line extensions (which could include Vista and the iPhone). "Products almost all have to multitask these days," Partelow says.

Another similarity is that most of the Top 10 products were willing to experiment with multiple means in their marketing mix - using avenues such as blogs, word of mouth and PR-generated media to get their product message out. "They didn't just rely on one or two common ways of getting their message across," Holleran says.

Moving forward, Holleran and Partelow say many new products will continue to follow these examples, as well as piggyback on other trends such as health and wellness products and more indulgent purchases.

That notion is backed up by other IRI research about the most successful new brands of 2007. According to the company's New Product Pacesetters Report, food and beverage products that had a health and wellness claim were the most successful last year.

Function food demand on the rise

The research shows that Campbell's Reduced Sodium Soup was the top new product seller last year. Other top sellers included General Mills Fiber One Chewy Bars, Dannon's DanActive Probiotic Dairy Drinks and Activia Light Yogurt, and Sara Lee's Heart Hearty & Delicious breads.

"During the next year, demand will explode for function food and beverages that deliver health benefits beyond basic nutrition," said Anne Berlack, IRI executive vice president/business and consumer insights, in a statement. "Retailers and manufacturers that marry functional benefits with effective consumer education, as Dannon did this year with DanActive Immunity-boosting beverages, will win big."

In the non-food category, the most successful products were ones that looked to create a more pleasant experience in everyday chores and personal care. While Huggies' Supreme Natural Fit Diapers topped the non-food category, other successful products included Tide's Simple Pleasures Detergent, Gain's Joyful Expressions Detergent and Febreze Noticeable Air Fresheners.

Article courtesy MediaPost