Abstract:

The objectives of this paper are to suggest the need for a definition of ’major’ new products in the FMCG industry and to outline the challenges and opportunities for European new product development as we approach the Single Market. The first part deals with original work carried out by the author in co-operation with Nielsen over a period of 30 years. This defines a major FMCG brand and provides the actual number of successful major new brands in Great Britain and in five other countries. It also indicates the relative importance of new major brands as a percentage of all major brands over time. It concludes that major new product development is not only difficult but also necessary. The second part suggests that the three key challenges to new product development are fear of failure, the need for proper (more!) resourcing and an integrated strategy which is lacking in most companies. The three key opportunities for successful new product development are the establishment of an on-going function for new products with its own career path, capitalising on the structural discontinuity created by the Single Market, and the potential for major new-to-the-world innovation within Europe, which is now the world’s largest consumer market. Finally, the author has developed a method of evaluating new product programmes called the Development Atom, based on the McKinsey 7-S model. It is contended that new product success needs continuous top management support and long-term commitment with a need for real leadership.