New and improved

American Demographics, March, 1998 by Nancy Ten Kate

Every year, companies introduce thousands of new products, and most eventually fail (see "What Were They Thinking?" page 64). In 1997, there were a record 25,261 new consumer packaged-goods introductions, up from the previous high of 24,496 products in 1996, according to Marketing Intelligence Services of Naples, New York. New product launches increased from 15,879 in 1990.

Household product introductions rose 50 percent, pet products were up 31 percent, and health and beauty aids were up 14 percent. Product introductions were down for beverages (3 percent), food products (6 percent), and miscellaneous products such as cigarettes and car-care (38 percent).

While the number of new products is at an all-time high, quality may have slipped, according to Marketing Intelligence Service's Innovation Ratings. Just 6 percent of 1997 new products featured innovations in formulation, positioning, packaging, technology, creating a new market, or merchandising.

The company rates the top-ten U.S. new product innovations that offer both new benefits and features. This year's winners include Dippin' Pizza (which includes a bowl of dipping sauce) and HomeTown Stars, a cereal with a box featuring pictures of local sports teams. Other truly new items are Uncle Ben's Calcium Plus Rice (fortified with calcium and vitamins), easier-to-scoop Breyers Soft'n Creamy Ice Cream, and Colgate Total Toothpaste, which helps prevent gingivitis, plaque, and cavities, and contains an antibacterial agent and time-released ingredients.

Kid product innovations include Huggies Little Swimmers Disposable Swimpants and Coppertone Kids Colorblock Disappearing Purple Sunblock. Housekeepers can take advantage of Windex Outdoor Concentrated Liquid Glass Cleaner, which hooks up to a garden hose to spray windows through screens; Shout Wipes stain-removing towelettes; and Tide HE High Efficiency Laundry Detergent for horizontal-axis washing machines.

For more information on new products, contact Marketing Intelligence Service Ltd.; telephone (716) 374-6326; fax (716) 374-5217; e-mail mktgintelsvc@cis.compuserve.com.