Of the 20,000-plus new products launched annually, barely 10% succeed. But there are four key priorities every brand manager should attend to when considering the development of a new product idea.
1)Evaluate the trial potential of the idea. Will the intended target try the product? With early quantitative testing, marketers learn: If the idea has a compelling benefit; if it offers something unavailable elsewhere; if it is priced right; and other insights that can help ensure success.
2) Determine which elements are central to driving trial potential. Use industry-standard techniques like Thurston V Analytical or derived importance measures to weigh the impact of claims, benefits and other features of the new idea to focus your initiatives on what really matters. Strive to unearth key consumer drivers, using both qualitative and quantitative techniques.
3) Understand the cannibalization impact of every product launch. While an idea may seem to have strong potential to build brand equity, the view in a vacuum can be very deceiving. Often, marketers have little sense of the impact a line extension will have on the performance of their entire brand — until it's too late.
New products can wither away the strength of existing SKUs. Don't increase sales for one at the expense of the overall product line.
4) Determine if the idea will build brand equity. Too many products are launched without a clear understanding of whether they will enhance the overall standing of the brand or simply borrow from its goodwill. Sort out the real winners from the short-term gainers.
For example, Quaker's recently launched Cinnamon Roll cereal raises some big questions relative to its ultimate impact on the equity of the brand. Test ads pictured a sticky sweet cinnamon roll — the antithesis of healthy eating and the Quaker Oatmeal Brand. While in the short term this may help win share in the cereal segment, it does little to support brand equity over time.
The bottom line? Go beyond easy trials, and dig deep to understand how to best communicate. You'll build franchise volume, and fulfill your brand mission with a compelling message.
Mark Sneider is general manager, AcuPOLL North America.
