For the first time, companies are embarking on new and disruptive activities in a quest to launch breakthrough innovations faster with more impact. At the same time, after reviewing more than 2,500 consumer product launches in the top 20 categories in each market, only 35 products met the requirements for Distinctiveness, Relevance, and Endurance to be considered breakthrough. What are the key ingredients that make this level of success possible? How can algorithms and 3D printing bring us faster and better prediction of such breakthroughs? Learn how innovation will succeed in a demand economy and in Asia.
Over the past 15 years, the author has monitored the success or failure of more than 2000 new products from three different professional perspectives: academic, manufacturing and new product research consultation. This experience has convinced me that most of these failures could have been avoided by a clearer awareness of the reasons behind them. The causes of new product failure fall into two broad categories, which 1 will call tangible and intangible. Tangible reasons are those that a non- marketer of the new product, e.g., outside marketing professionals or even consumers, can detect. They include such readily perceptible factors as poor product quality and competitive reaction. Intangible reasons are the subtler problems resulting from counterproductive corporate situations and attitudes toward new product development. The former type of factor is often the result of the latter.
This paper will summarize the reasons for these new product failures, concluding with specific recommendations based upon fifteen years' experience in researching and monitoring the progress of over 2000 new packaged goods launched in both the U.S. and Europe.
The object of this paper is to tell the story of the launch of The Mail on Sunday and how it nearly came to disaster; was relaunched and how it arrived in the position in which we currently find it which is the fastest growing newspaper in Fleet Street. Throughout the story of The Mail on Sunday research has been used extensively at every stage to monitor progress and help decision making.
Productivity and success in the new product area could be vastly improved through increased concentration and thinking in the early stage planning phase; particularly, in terms of defining the strategic role of the new product, identifying and understanding the primary prospects, and setting specific goals in a clear development plan.
The opening discussion attempted to identify specific factors which can discriminate between success and failure of new products in the market place. Rather than spend time trying to find suitable definitions of the terms, success and failure, it was agreed that establishing the factors affecting success and failure was likely to be a more profitable method of debate. A total of 30 - 40 factors emerged from our discussions . Having listed the factors, the next logical step was to attempt a cluster analysis including all factors. As in multi-variate analysis, where one item qualified for more than one cluster, a subjective factor loading or weighting was used to determine which cluster was more appropriate for that factor.
In October 1975 Gillette decided to enter the low- cost end of the market with a model retailing known as the "TEMPO Junior". In terms of writing performance, the "Stylon" and "Junior" models meet the same standards and are differentiated only by design features. Introduced to coincide with the sales boom at the start of the school year, the TEMPO Junior met with poor success. Consequently, the Marketing Division of GILLETTE FRANCE considered that a more incisive sales strategy was needed, and commissioned the study described be- low with a view to assisting its formulation on a number of points.
In October 1975 Gillette decided to enter the low- cost end of the market with a model retailing known as the "TEMPO Junior". In terms of writing performance, the "Stylon" and "Junior" models meet the same standards and are differentiated only by design features. Introduced to coincide with the sales boom at the start of the school year, the TEMPO Junior met with poor success. Consequently, the Marketing Division of GILLETTE FRANCE considered that a more incisive sales strategy was needed, and commissioned the study described below with a view to assisting its formulation on a number of points.
Lack of distribution can be a major cause of new product failure. But, what constitutes "adequate" distribution, and how should the manufacturer set about obtaining it. This is the subject of this paper presented in three closely-linked sections : 1. An historical review of the distribution levels achieved by 29 new food products launched nationally between 1962 and 1967 in the United Kingdom. This is mainly based on Nielsen data; 2. Why some products fail to achieve adequate distribution. This section is largely based on a pilot survey in ten large United Kingdom retail or multiple groups at Head Office buyer level. This survey was initiated by Benton & Bowles Ltd. , and carried out by Hurdle and Trew, an independent research organisation; 3. The use of sales promotion techniques to achieve initial distribution and improve it through the critical first year of the new products life. Throughout the paper we are referring to fast-moving grocery products and not to consumer durables.