81% Of Consumers Are Unable to Name New Products Launched in 2006

Business Wire, Feb 28, 2007

Traditional Media Still Dominates Recognition and Purchasing Behavior

Digital Media Is Emerging As Influencing Factor with Younger Consumers and Early Adopters

BOSTON -- Despite the fact that advertising spending was up from $271 billion in 2005 to $285 billion in 2006(a), 81 percent of consumers could not name one of the Top 50 new products launched in 2006, an all-time high for lack of recognition--up from 57 percent the previous year, according to the annual Schneider/Stagnito Communications/IRI Most Memorable New Product Launch Survey. "Relying on advertising alone for new product launches simply isn't working," said Joan Schneider, author of New Product Launch: 10 Proven Strategies. "To capture consumer attention requires using an array of launch tactics that create multiple touchstones for consumers to build recognition for your new product."

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This year's survey showed that most consumers learned about the 32,624(b) new products launched in 2006 the old fashioned way, as 73 percent of Americans polled said they received new product information from TV commercials or infomercials. When the study looked at how people learned about new products and what influenced them to purchase, free samples lead the strength of influence index with 66 percent, followed by received a coupon with 55 percent, and recommended by family and friends and television commercials or infomercials tied for third with 46 percent. When asked the likelihood of buying a new product after sampling, 96 percent said they were very or somewhat likely to buy a product they sampled.

Television commercials received mixed reviews from consumers as 83 percent stated they enjoy watching commercials on TV at least sometimes, but 70 percent stated they try to avoid commercials. Of those who avoid TV commercials, 16 percent used OnDemand or Tivo and 79 percent leave the room or do something else. After viewing a television ad, 64 percent said they were very or somewhat likely to visit a company or product's Web site.

Moving into the Internet world, online advertising was named by 21 percent of those polled as a way they learned about new products last year, and online articles or product reviews were named by 15 percent as a source of new product information.

Emerging digital media, such as online videos and online communities, are growing in influence among younger consumers, with 28 percent of those between ages 18 and 34 saying these sources influenced their decision to buy new products in 2006. Across all age groups, two out of ten Americans polled said digital media influenced them to purchase a new product last year. The data from this survey suggests that advertising through digital media is still emerging, but it is starting to gain a foothold with early adopters and younger consumers aged 18-34.

Top 10 Most Memorable New Product Launches 2006

This year's top 10 Most Memorable New Product Launches include innovations from trusted brands as well as products with new technology or distinct health benefits. Based on feedback from more than 1,000 consumers nationwide, 24 percent of consumers polled online reported KFC's Famous Bowls(TM) as the year's Most Memorable New Product Launch. The remaining Top l0 2006 Most Memorable New Product Launches include: Nintendo([R]) Wii([TM]) at 22 percent; Glade([R]) PlugIns([R]) Scented Oil Light Show at 19 percent; McDonald's([R]) Snack Wrap at 17 percent; Activia([R]) Yogurt at 11 percent; Dr. Pepper Berries & Cream at 11 percent; Gillette([R]) Fusion Power(TM) at 10 percent; Wish-Bone([R]) Salad Spritzers(TM) at 9 percent; Crest Whitestrips([R]) Renewal at 8 percent; and T.M.X.(TM) Elmo at 8 percent.

New Product Adoption Rate

"The survey findings reinforce the tremendous effort that marketers must devote to consumer research and message development in order to build a successful launch. The 12-to-24 month product development process must culminate in a multi-sensory marketing program, including the sounds and images of a typical 15- or 30-second ad, that can grab a consumer's attention, educate them, and motivate them to purchase. Most people don't appreciate how hard that is to do, and how important. The $5M-$50M million dollars typically spent to distribute advertising for a new brand will be largely wasted if the ad itself is weak. So, the people who worked on launches such as Glade Plug-In Scented Oil Light Show and Activia deserve high praise for their achievements," advised Valerie Walker VP Shopper Insights, IRI.

Awareness of new products ranked high for new "fast food" products at both ends of the calorie scale; two-thirds of respondents were aware of KFC(TM) Famous Bowls (720 calories) and 55 percent were aware of McDonald's([R]) Snack Wrap (320 calories). Other food products, such as Activia([R]) Yogurt, a pro-biotic yogurt, and Wishbone([R]) Salad Spritzers(TM), a one calorie-per spray salad dressing, reflect a continuing consumer need for healthful products that assist in managing weight and other health issues. In contrast, new technologies embedded in products such as Nintendo([R]) Wii and T.M.X.(TM) Elmo captivated audiences with their advanced capabilities and created "buzz" and high consumer demand this past holiday season.