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Just 1.5% of consumers determine new CPG's success
When consumer-driven marketing firm, Catalina Marketing, analyzed the two-year purchasing behavior of approximately 41 million U.S. consumers at approximately 20,000 stores they found only a very small percentage of those shoppers determined the success of new Consumer Packaged Goods product launches.
In the first twelve months following a CPG product launch just 1.5%, or 1 in 67 shoppers, accounted for 80% of sales. This segment of consumers was also found to be more likely than the average shopper to try out new products:
- New product launch - 3.8 times more likely;
- New product line extension - 5.8 times more likely.
"With such small shopper concentrations driving the success of product launches, it's critical for a brand's advertising and promotions to reach the consumers who are most likely to try and repeat," said Todd Morris, executive vice president, brand development, at Catalina Marketing.
The "New Products Report" also revealed that, when examining 25 of the top product launches of 2010, almost two-thirds of sales (63%) came from existing brand buyers, but almost half of those sales cannibalized existing brand purchases.
"These findings argue for new, more focused marketing approaches, such as purchase-based targeting, to engage the buyer audiences that drive successful product launches. Reaching specific purchasing segments, such as heavy category and brand buyers, and knowing what they need to hear based on their preferences, can substantially increase your odds of success," concludes the report, which can be found online.
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