New Product Pacesetters

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New Product PacesettersCarving Out Growth in a Down Economy

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Executive Summary

Introduction

Overview

Growth Opportunities

Food & Beverage

Non-Foods

Convenience Stores

Conclusions

Resources

MARCH 2011

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© Copyright 2011 SymphonyIRI Group, Inc. All rights reserved.

The effects of the recent downturn are still heavily impacting CPG and retail companies. Although sales have improved during the past year, the Great Recession has significantly changed consumer spending habits today and possibly forever.

The shopper of today consumes products in a much different way versus just a couple of years ago. This tectonic shift in shopper behavior has created the need for manufacturers and retailers to completely rethink how they develop, package, price, merchandise and display products. SymphonyIRI’s 2010 New Product Pacesetters report provides insights into minds and practices of leaders within the CPG industry that are successfully doing just that.

Consumer trends within the food and beverage sector indicate that customers are shifting towards products that encompass convenient indulgence and wellness. Many consumers are trying to eat healthier, and have traded out soda for sports drinks or waters and replaced junk food with healthier options. In 2010, the most powerful food and beverage product launches were those affiliated with health and wellness.

While the consumer of today may have tightened their belts on indulgences, the need for indulgence has certainly not gone away. People are still willing to spend money on treats here and there, evidenced by an array of successful indulgent Pacesetter brands. These products deliver a cost-efficient, home-based solution to the ice cream parlor.

In the non-foods sector, the shift towards tending to health and beauty needs in the home continued in 2010, and the most powerful non-foods Pacesetters were those that armed consumers with the tools to get it done. Today’s consumer has cut back on going to the spa and getting their teeth professionally whitened. Instead, they are taking the do-it-yourself approach, trading in Botox and laser treatments for anti-aging serums and products that are marketed as “professional results at home.”

Despite unstable economic conditions, average year-one sales for New Product Pacesetters in 2010 climbed. Last year also witnessed great success by manufacturers small and large who took a risk by bringing a new brand to market. These trends suggest a brighter outlook for 2011 and beyond.

However, CPG and retail leaders face the significant challenge of identifying shoppers who are opening their wallets again, those who are their maintaining frugal ways, and those doing some of both. It will be critical to continuously study evolving consumer needs, and how people are learning about, buying and using products. The most powerful marketing strategies will be adjusted based on even minute shifts in attitudes and behaviors.

For those who may have missed Summit 2011, check out our blog, “Insights from Aisle 5,” Twitter @SymphIRI, Facebook and Live@Summit Webcasts to catch what you missed!

Enjoy the lessons learned from 2010’s most successful product launches, and share your thoughts and observations regarding new product strategies for 2011. These new products are the future of the CPG and retail industries.

Indulgence and Wellness: A 21st Century Way of Spending?

New Product Pacesetters: Carving Out Growth in a Down Economy

Larry LevinExecutive Vice President/General Manager, Consumer InsightsSymphonyIRI Group

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New product innovation across food and beverages has slowed in recent years amidst difficult economic conditions and conservative consumer behavior; non-foods innovation continues to escalate, supported by rapidly evolving technologies

Manufacturers can capitalize on opportunities by investing in innovation across the value spectrum, meeting consumers’ need for value, while simultaneously encouraging purchase activity at the premium tier with exciting new products that answer consumers’ most pressing day-to-day needs

Leverage frequent and granular shopper insight and market analyses to keep abreast of existing and evolving new product development opportunities at the mass market and niche market levels

Continue to leverage brand extension as a tool to maintain brand vitality and consumer engagement, while stepping up efforts around brining truly new innovations to market , where viable

Product innovation in non-foods is heating up across a number of categories, largely driven by technologies that provide stronger, faster, easier and better results across everyday needs and tasks

Food and beverage innovation is keying in on home-based food rituals, and expanding the breadth and depth of better-for-you assortment

Manufacturers across CPG must constantly evaluate evolving technologies and ingredients across departments and outside the industry identify promising prospects and assess feasibility and risk vs. reward balance of building these prospects into new product development initiatives

Top-selling new products within the convenience channel underscore consumers’ efforts to balance their need for immediate indulgence and energy against efforts around healthier eating

Support innovation efforts within the convenience store channel with solutions-based merchandising programs prominently featuring newer, more innovative options across indulgent and better-for-you categories/brands

Brand extensions continue to represent the lion’s share of new product launches despite a long-standing history of net new brands bringing substantially larger year-one sales returns

INSIGHT ACTION

Executive Summary: Turning Insights Into Action


44


Introduction

New product innovation is the lifeblood of

the CPG industry. New products breathe

new life into core brands, and they bring

fresh news into the CPG environment.

But, bringing to market new products is not

an easy task, even in the best of times.

Prolonged economic instability has served

to make this task even more difficult and

daunting during the past several years.

Amazingly, some products have been able

to beat the odds and make a splash in the

CPG world despite today’s less-than-ideal

market conditions.

These products are SymphonyIRI’s 2010

New Product Pacesetters. They are truly

remarkable. Only about one-quarter of

products achieve the minimum $7.5 million

required to achieve Pacesetter status.

In 2010, the most successful product

launches drove to satisfy consumers’

health and wellness objectives, brought

excitement to home-based eating and

drinking, and raised the bar on

expectations around in-home health,

beauty and personal care.

Opportunities available to innovative CPG

manufacturers abound despite unstable

economic conditions and conservative

consumer behaviors. To capitalize on that

success, manufacturers must act with

speed, precision and determination. They

must be willing to take risks – calculated

risks – based on an intimate knowledge of

evolving market and consumer trends and

developing technologies.

This report reveals the most successful

CPG product launches of 2010, and

provides insights into the secrets of their

success. These products provide best-in-

class examples of how to beat new product

odds.

These brands reflect a keen understanding

of the consumer at a time when the only

constant is change. They bring new

technology and new ingredients to life in

many and varied ways to simplify and

excite, to strengthen and indulge.

And, perhaps equally as important, these

brands demonstrate that, even in difficult

times, taking risks can reap substantial

rewards. Across food and beverages, for

instance, net-new innovation, new products

coming to market without the support of

established brand equity, returned an

average 57% higher year-one sales versus

imitative launches.

And, across food and beverages and non-

foods, brands such as Chobani Greek

yogurt and Jillian Michaels vitamins

underscore the fact that successful new

launches don’t have to come from huge

CPG manufacturers.

SymphonyIRI New Product Pacesetters Criteria

At least $7.5 million in year-one sales across food, drug and mass channels (excluding Walmart)

Begin tracking sales after 30% ACV weighted distribution achieved

Must complete a full year of sales (brands that do not are considered Rising Stars for the following year)


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Simultaneously, non-foods innovation has

become more targeted. Beauty and

personal care products targeted to specific

hair and skin types, product lines for men,

and sensory-stimulating home and pet care

are examples of targeted non-foods

innovation. Many such products are

finding success.

The net result of targeted innovation is

often lower sales potential. Still, the

opportunity is huge and evolving

technologies and ingredients will support

continued growth of targeted, even niche,

products. In the end, the definition of

“success” may be redefined, and it will

likely center around lower but more

targeted sales stories.

ease, non-foods launches continued to

climb, outpacing food and beverage

launches for the first time in recent history.

A substantial slowdown occurred in 2009

across food and beverages, while the pace

of innovation across non-foods continued

to gain momentum. This trend continued

in 2010.

From a dollar sales perspective, though,

new food and beverage launches

outperformed their non-foods counterparts.

This is likely attributable to phenomenal

year-one sales results across a select few

new food and beverage brands in 2010.

These brands will be explored on the

pages that follow.

Number of CPG New Product Introductions*

Brand Level

Just 3% of new products achieve

blockbuster status, year-one sales of more

than $50 million. The reality is, successful

new product innovation is exceptionally

difficult, and a vast majority of new

products don’t even reach $7.5 million in

sales during their first year.

Still, innovation is essential.

Even during a time of prolonged economic

instability, one in five consumers indicates

that she is always looking for new products

to try1.

Innovation has slowed somewhat during

the past several years, specifically in the

food and beverage arena. In 2008, when

food and beverage innovation began to

Overview


74%

5%11% 6% 2% 0%

83%

4% 7% 5% 1% 0%

<$7.5 $7.5-$10 $10-$20 $20-$50 $50-$100 $100+

Total Food & Beverage Total Non-Foods

903 916 859

659 647796 833

936 949 957

2006 2007 2008 2009 2010

Total Food & Beverage Total Non-Foods

Source: SymphonyIRI New Product Profiler™*Across Food, Drug & Mass Channels (excluding Walmart)

2010 Proportion of CPG New Productsby Year-One Sales* ($ Millions)


1Source: SymphonyIRI 2011 New Products Survey

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happened in the food and beverage arena

and in non-foods. The top two new brand

launches out-performed their closest New

Product Pacesetter rivals by a wide

margin.

In the coming year, CPG manufacturers

will need to make difficult choices vis-à-vis

new product development. The economy

is still very unstable. Consumers are quite

cautious, and many expect their financial

situation to deteriorate as the year

progresses. Consumer appetite for new

products is not strong, due to fear of

“wasting” money on an unknown

newcomer that disappoints.

In difficult economic times, the advantage

of coming to market with established brand

equity is substantial. But, the potential

reward of winning with a new brand holds

great allure.

that brand trust heavily influences brand

decisions.

New food and beverage brands have

historically out-performed brand

extensions. And, despite an unstable

economy and extremely high levels of

consumer caution and frugality, this

certainly remains true today. In 2010, in

fact, new launches reaped much higher

than average year-one returns.

In 2010, new food and beverage brand

introductions outperformed brand

extensions by 61%. Across non-foods

categories, the gap is even more

substantial, at 79%.

The sizable gap in year-one success

between 2010 new brands versus brand

extensions is largely attributable to a

handful of hard-hitting launches. It

Detailed in SymphonyIRI’s recent 15 Years

of New Product Pacesetters report, a

comprehensive analysis of the most

successful CPG product launches over the

past 15 years, history’s innovators have

frequently chosen brand extensions over

new brand introductions as a means of

bringing new products to market.

It’s no surprise. After all, brand extensions

are a relatively quick and inexpensive way

to add excitement and longevity to core

brands. Brand extensions accounted for

88% of new food and beverage and 92% of

non-foods products introduced in 2010.

SymphonyIRI’s recent Brand and Retailer

Loyalty survey revealed that consumer

brand decisions are impacted by whether

or not there is an established trust of the

brand. In fact, 52% of consumers indicate

Growth Opportunities: New Brands v Brand Extensions




88% 92%

Food & Beverage Non-Foods

2010 % of New Product Pacesetters*

That Are Brand Extensions

$29.5 $32.9

$42.4 $38.9

$26.8$19.6

$26.4$21.7

Food & Beverage

Non-Foods Food & Beverage

Non-Foods

New Brands v Brand ExtensionsAverage Year-One Sales ($ Millions)

20102002-2009

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$53.9

$59.9

$62.1

$74.2

$74.4

$80.8

$110.3

$114.1

$149.4

$190.5Shelf Stable Sports Drinks

Yogurt

Snack Nuts/Seeds/Corn Nuts

Bottled Water

Fresh Bread & Rolls

Rfg Juices/Drinks

English Muffins

Coffee

Beer/Ale/Alcoholic Cider

Gum

1. POWERADE ION4

2. Chobani Greek Yogurt

3. Wonderful Pistachios

4. glacéau vitaminwater zero

5. Nature’s Pride

6. Trop50

7. Thomas’ Better Start

8. Green Mountain Coffee K-Cups

9. Budweiser Select 55

10. Trident Layers

low in fat. It’s all natural, and preservative

and hormone free. Live yogurt cultures

and bone-building calcium bring added

nutrition. And, it’s a quick and easy for in-

home and on-the-go consumption.

The success of Chobani and Wonderful

also reinforce a hugely important message

for CPG manufacturers: it doesn’t take a

giant to attain new product success.

The power and diversity of trends offering

innovation opportunity across food and

beverages is amazing. The pages that

follow provide greater detail on these

trends and the impact of innovation in

these important areas.

and sales of all natural foods grew 1.1%

during 2010, outpacing average CPG

industry growth by a wide margin. Growth

was driven, in part, by increased product

availability and marketing support. Three of

this year’s top ten new food and beverage

releases are all-natural products.

Wonderful Pistachios provides all-natural

powerful, flavorful crunch. Nature’s Pride

bread nourishes the body with only the

purest of ingredients.

Chobani Greek yogurt is “nothing but

good.” The brand single-handedly

addresses a range of today’s most

pressing food-related desires in a single

versatile product. It’s high in protein, and

Food & Beverage: Top 10 Pacesetters


2010 New Product Pacesetters: Top 10 Food & Beverage BrandsYear-One Dollar Sales ($ Mil) Across Food, Drug and Mass

(Excluding Walmart)

Source: SymphonyIRI New Product Profiler™, New Products Launched February 2009- January 2010

According to SymphonyIRI’s 2011

Consumer Snacking Study, 71% of

consumers are trying to eat healthier these

days. Top food and beverage innovations

of 2010 played very well to this mission.

Food and beverage marketers are

successfully building nutrients into their

new products. And, they are successfully

taking away less desirable attributes.

POWERADE ION4 is aimed at helping

athletes, and “want-to-bes,” perform at

their best by replenishing four electrolytes

lost in sweat and boosting energy

metabolism. Glacéau vitaminwater zero

has a more broad-market approach which

“lets you act as the peacemaker in the epic

battle between taste and nutrition,” with an

array of added vitamins and no calories.

Trop50 and Budweiser Select 55 bring to

market the flavor of a “full calorie” product

offering with significantly less calories. The

marketers of these products understand

that many consumers are not willing to

sacrifice flavor to save on calories, a

critical mindset that is at the center of

these products’ marketing campaigns.

Trident is bringing flavor and texture

excitement to the sugarless gum category

with Trident Layers. This new product is

marketed as a “gumwich,” a soft fruit

flavored center layer sandwiched between

two layers of fruit flavored gum.

Consumers’ passion for all-natural foods

trigged an exceptionally strong return,

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smooth and creamy yogurt marketed for

“whenever, wherever consumption.”

The most successful salty snacks of 2010

represent a range of snack segments,

including meat snacks, crackers, chips and

nuts. Detailed in SymphonyIRI’s 2011

State of the Snack Industry report, these

products capitalize on growth opportunities

in satiety, health and wellness, value and

sustainability.

Across food categories, CPG

manufacturers are finding success

innovating around home-based food

rituals.

has covered this trend in great detail

throughout the course of the economic

downturn.

The yogurt category is a major contributor

to the strong performance by the breakfast

solutions consumption grouping. Seven of

the 32 breakfast solutions Pacesetters are

yogurts, bringing to market a range of new

flavors and forms, including Greek yogurts.

Danimals Crush Cups, for instance, come

in a crushable cup, providing a spoonless

on-the-go snacking solution targeted at

young consumers. And, for the adult

market, new on-the-go yogurt successes

includes Dannon’s Activia yogurt drink, a

Food & Beverage: Category Trends



While overall food and beverage innovation

is slightly lower this year versus last year

and historical trends, some product usage

groups found great success innovating in

2010.

For instance, breakfast solutions

represented one-third of Pacesetter dollars

within the food arena in 2010, substantially

higher versus a historical trend of 23%.

Similarly, salty snacks innovation

accounted for nearly 25% of Pacesetter

dollars within the food arena, more than

doubling the historical trend of 9%.

These successes are supported by an

intense consumer demand for at-home and

from-home meal solutions. SymphonyIRI

Most Active Food New Product PacesettersProduct Usage Group as % Total Food Pacesetter Dollars

23%34%

9%

22%17%

15%16%

11%6%

9%27%

10%Other Foods

Candy & Gum

Meal Makers / Light Meals / Appetizers Dinner Solutions

Salty Snacks

Breakfast Solutions

Average2002-2009 2010

Other :

Sweet SnacksDessertsSauces/Spreads/ Dressings/ Dips/Condiments

Avg.2002-2009 2010

13%10% 3%

3%5% 2%

*

*

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launch of 2010 was Kool-Aid Fun Fizz,

fruit-flavored tablets that “fizz” when

combined with water.

Three big-selling coffee and tea launches

helped to drive the segment’s share of

Pacesetter beverage product sales

northward by six points in 2010. Single

cup coffees by Newman’s Own and Green

Mountain contributed heavily to this

growth, benefitting not only from home-

based indulgence, but also the launch of

single cup coffee brewers, such as Keurig.

Juices and waters launches in 2010 also

catered to consumers’ wellness goals,

evidenced by top-selling glacéau

vitaminwater zero, mentioned earlier, as

well as products such as Apple & Eve

Fruitables, a fruit and vegetable juice

beverage targeting the youth market, and

Yoplait Smoothy, a quick and easy frozen

yogurt drink.

But, innovation also found success in

bringing to market at-home indulgences.

The most sizable indulgent beverage

Food & Beverage: Category Trends



On average during the past eight years,

beverage categories have a fairly strong

trend of successful innovation. In 2010,

this trend continued, but shifts occurred

across product usage groups.

The most sizable shift is evidenced across

the juices, milks and waters segment, with

healthier-for-you milks, in particular,

making a big splash. Four of the 12 new

launches in the past year were healthier-

for-you milks. The top selling new milk

brand, Silk Almond Milk, touts the

goodness of almonds to treat your body to

perfectly delicious nutrition, just as Nature

intended.

Most Active Beverage New Product PacesettersProduct Usage Group as % Total Beverage Pacesetter Dollars

26%41%

45%

32%

8%14%

22%13%

Beer, Wine & Spirits

Coffee & Teas

Carbonated, Sports, & Energy Drinks

Juices, Milks & Waters

Average2002-2009 2010

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years. In 2010, the average pantry was

home to 369 SKUs, down sharply from an

average of 404 in 20071.

The convergence of pantry shrinkage and

variety innovation trends underscore the

urgency of ensuring that products that are

brought to market have maximum

relevancy to ensure ideal placement and

maximum impact.

Key benefits are explored in greater detail

on the next several pages of this report.

From natural products to organics, and

from added “good” ingredients to reduced

“not so good” ingredients, innovation

centered on raising the bar on healthier

eating abounds.

Variety has been a key focus of food and

beverage innovation during the past

several years. CPG maintained this focus

on more variety in 2010. Last year, three-

quarters of successful food and beverage

launches expanded available variety.

Meanwhile, pantry sizes across America

have been shrinking in the past couple of

Food & Beverage: Consumer Benefit Trends



A great deal of food and beverage

innovation is centered on bringing healthier

eating and drinking solutions to the

marketplace. In a prolonged economic

downturn, it has become the nucleus of

many consumers’ money saving strategies.

The mindset is: ”If I eat healthier, I am

healthier. If I am healthier, I will not spend

as much on medical expenses.”

Even as the economy has made positive

strides, the focus on healthy eating

remains quite strong. According to

SymphonyIRI’s 2011 Consumer Snacking

Study, 71% of consumers are trying to eat

healthier these days.

2010 Food & Beverage New Product Pacesetters: Top 15 Benefits% of Total Pacesetters Offering Benefit

17%

17%

22%

25%

25%

25%

27%

27%

30%

33%

33%

38%

39%

73%

75%

Less, Reduced Fat or Fat-Free

Improved Flavor, Taste

Different Texture

Less, Reduced Calories, Lo-cal

Bite-size, Hand Held

New Technology

Added Vitamins, Nutrition

High Fiber or Whole Grain

More Natural, Organic

Improved/Superior Process

Convenience, Ready-to-Serve

New Designs, Patterns, Look

Distinctive/New Flavor

New or Unique Recipe

Variety--Flavors or Recipes

Taste & Variety

Health & Wellness

Convenience

Other

1Source: SymphonyIRI Economic Shopping Behavior Longitudinal Database™, SymphonyIRI Consumer Network™

1111


Top food and beverage Pacesetters

Chobani and Trident Layers, detailed

earlier in this report, are examples of new

textures in the grocery aisles.

Another yogurt, YoCrunch 100 Calorie

Cup, also achieved New Product

Pacesetter status in 2010. Consumers

were drawn to the wholesome benefits of

smooth and crunchy yogurt packaged in a

manner that takes the guesswork out of

calorie counting.

The old became new again with the launch

of the Pepsi Throwback line, including

Pepsi Throwback and Mountain Dew

Throwback. These products have been a

smashing success, made with real sugar,

iconic packaging and the taste that

captures the spirit of the 1970s and 1980s.

The idea behind the launches was to

appeal to consumers’ nostalgic side and

capture their “taste for the past.”

Innovation around texture also picked up in

2010. For the year, nearly one-quarter of

new food innovation brought different

textures to the marketplace, ranging from

thick and creamy to crispy and crunchy.

Variety innovation was very hot across

food and beverage categories in 2010.

New recipes escalated sharply in 2010,

bringing fun and excitement to everyday

eating occasions.

For instance, Stouffer’s Easy Express

Skillets target the busy family looking for a

quick and nutritious way to solve the daily

dinnertime dilemma. This line offers a

“wide range of delicious, wholesome meals

that let you feed your family in 20 minutes

or less.”

For snackers, Doritos Late Night tortilla

chips offer “great taste, great crunch and

good fun™” rolled into one. Products,

such as Special K Fruit Crisps, offer the

opportunity to satisfy a sweet tooth without

completely derailing healthier eating

efforts.

Food & Beverage: Consumer Benefits - Taste & Variety


Percent of Food & Beverage New Product PacesettersOffering Taste & Variety Benefits vs Historical Trend

75% 73%

39%

22% 17%

61%

46%35%

12% 8%

Flavors or Recipes

New/Unique Recipe

Distinctive/New Flavor

Different Texture Improved Flavor/Taste

20101997-2010


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New ingredients are emerging on a

seemingly daily basis, and technology is

quickly evolving. Just one example of a

quickly evolving ingredient trend relates to

gluten. This trend is outlined in more detail

in the “Food & Beverage - Trends to

Watch” section of this report.

Together, technology and ingredient

advancements hold enormous potential for

U.S. consumers’ wellness goals. CPG

manufacturers must continue to study and

experiment with these factors, finding new

and different ways to bring health and

wellness to the next level.

Equally popular, though, is the reduction or

removal of less desirable attributes,

namely calories, fat and sodium.

Three of the top 10 new food and beverage

launches tout less calories: Trop50 orange

juice, Budweiser Select 55 and Yoplait

Delights.

Progresso High Fiber Ready-to-Serve

soups conveniently provide desirable

attributes, namely fiber, in a reduced

calorie, low fat soup.

McCormick and Morton are each bringing

more flavor to foods while reducing

sodium, with successful launches of

seasoning products.

Food & Beverage: Consumer Benefits - Health & Wellness



Discussed earlier in this report, food and

beverage innovation around health and

wellness has picked up notably in the past

year.

In 2010, 30% of successful new food and

beverage launches offered natural and/or

organic ingredients, while one-quarter

brought to market added nutrients or more

fiber/whole grains.

Several of the top 10 food and beverage

Pacesetters are all natural/organic,

including Chobani, Wonderful Pistachios,

and Nature’s Pride bread. Certainly, drive

for more natural/organic foods cuts across

food and beverage categories. Buitoni

Riserva pasta, Alouette Natural Crumbled

cheese and Healthy Choice All Naturals

are just a few additional examples of CPG

manufacturers hitting it big by sticking

close to nature.

Other healthy attributes hitting the shelves

with more frequency include more

energy/protein and more antioxidants.

POWERADE ION4, mentioned earlier,

increases energy by replacing key

electrolytes that are lost in sweat. Dannon

Activia Fiber is a low-fat yogurt with fiber

and cereal. General Mills Wheaties Fuel is

bringing a combination of hard-hitting

attributes - an energy boost from whole

grains and essential B vitamins, as well as

fiber to curb hunger and regulate the

digestive system.

Percent of Food & Beverage New Product PacesettersOffering Health & Wellness Benefits vs Historical Trend

1%

4%

4%

6%

17%

17%

10%

19%

16%

6%

10%

11%

12%

25%

25%

27%

27%

30%

Low Salt/Sodium

No Trans Fat

Antioxidants

Energy/Protein

Lower Fat/Fat Free

Reduced Calorie

High Fiber/Whole Grain

Added Vitamins, Nutrition

Natural/Organic

20101997-2010

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and evening snack and meal occasions. In

a convenient, hand-held form, Hot Pocket’s

SideShots are mini soft-baked sandwiches

that are microwave ready in about two

minutes. And DIGIORNO Flatbread Melts

deliver fresh-baked, restaurant taste in

minutes from the microwave.

The economy is slowly emerging from

recessionary conditions. But, consumers

remain exceptionally cautious, with many

continuing to struggle to afford weekly

groceries. A predicted escalation of food

and beverage prices in 2011 will add to

apprehension, supporting a continuation of

home-based food rituals in the coming

year.

indulgent sectors of the marketplace, with

Del Monte Fruit Chillers and Dove Bar

Miniatures, respectively.

The quest for convenience crosses

dayparts, and innovation does, too. For

instance, top-10 performer Thomas’ Better

Start English Muffins raised the nutrition

bar on portable breakfast solutions. These

muffins offered more fiber with less

calories, no high fructose corn syrup and

no trans fat, yet were still “Thomas’

Delicious.” In January 2011, this line was

replaced by Thomas’ Hearty Grains, further

enhancing the brand’s wellness profile.

Hot Pocket SideShots and DIGIORNO

Flatbread Melts are hand-held entrees that

add to on-the-go options for the afternoon

Food & Beverage: Consumer Benefits - Convenience



Convenience is a long-standing and well-

entrenched trend in the CPG industry. It

has truly become an expectation within the

industry, often playing a secondary role to

newer and/or evolving expectations.

The demand for convenience has been

reinforced in recent years by economic

conditions, which have led more

consumers to eat at home or bring food

from home in an effort to minimize food

and beverage expenditures.

Detailed in SymphonyIRI’s 2010 State of

the Snack Industry report, one-third of

consumers are eating snacks in place of

meals today, and 39% seek snacks that

can be eaten on the go.

CPG manufacturers are working to

capitalize on these opportunities.

Consumers are responding favorably to

their efforts. In 2010, one in three

successful new food and beverage

launches touted convenience benefits.

Innovation around bite-sized and hand-

held food and beverage escalated sharply

last year, accounting for one-quarter of

successful new launches.

In the gum/candy arena, bite-sized

products, such as Hershey’s Pieces and

Skittles Crazy Cores, offer convenient

excitement to the snack occasion.

On-the-go frozen novelty innovation

addressed the healthier and more

33%

25%26%

12%

20101997-2010

Percent of Food & Beverage New Product PacesettersOffering Convenience Benefits vs Historical Trend

Extra Convenience, Added Portability, Ready-to-Use

Bite-Size, Hand-Held, Snack Form

14


2010 New Product Pacesetters Rising Stars

Projected Top 10 Food & Beverage Brands(Alphabetical Order)

Dannon Danimals CoolisionRfg Yogurt

Oscar Mayer SelectsFrankfurters

Food & Beverage: Rising Stars



Dove PromisesChocolate Candy

PF Chang’s Home MenuFz Dinners/Entrees

M&Ms Milk Chocolate PretzelChocolate Candy

Stouffer’s Lean Cuisine Market CartonsFz Dinners/Entrees

Marie Callendar’s Fresh Flavor SteamersFz Dinners/Entrees

Thomas’ Bagel ThinsBagels/Bialys

Mountain Dew White OutCarbonated Beverages

Yoplait Greek Yogurt

more for gourmet snacks. Yoplait Greek

yogurt, mentioned earlier, and Dove

Promises each cater to this marketplace.

Trends around convenience, wellness and

gourmet products are likely to continue to

intensify as technology evolves and the

marketplace ages. Food and beverage

manufacturers must continue to invest to

understand how these trends are evolving,

and how new attributes and technologies

can raise the bar on innovation. This

knowledge is and will continue to be

invaluable in an increasingly competitive

marketplace.

performing quite well in its first year on the

market, though the brand did not make the

ranks of the top 10 Rising Stars for this

analysis.

Also quick and easy, PF Chang’s Home

Menu and Marie Callender’s Flavor Fresh

Steamers make restaurant quality and/or

premium flavor dinners readily attainable in

the home and at a more affordable price

point.

Despite economic conditions and

conservative consumer mindsets, premium

product launches continue to hold growth

opportunity. For instance, SymphonyIRI’s

2011 Consumer Snacking Study reveals

that 19% of consumers are willing to pay

SymphonyIRI’s Rising Stars provide a

sneak peek at the CPG world of tomorrow.

These products have been in the

marketplace for less than one year, but

they are achieving strong sales results

because they are resonating with the ever-

evolving consumer.

This year’s Rising Stars bring wellness and

indulgence, tied with a pretty bow of

convenience and gourmet appeal. Many of

the products on this year’s Rising Stars list

offer more than one of these hard-hitting

benefits.

Convenient, healthy and indulgent, Yoplait

Greek yogurt has twice the protein of

“regular” yogurt with a thick and creamy

texture. Dannon GREEK yogurt is also

1515


Food & Beverage: Trends to Watch

Food and beverage innovation will

continue to run broad and deep, with

convenience remaining an expected, yet

secondary, attribute of most successful

new products. Other key influencers of

food and beverage innovation include:

Wellness goals notwithstanding,

consumers today view eating and drinking

as an opportunity for fun and excitement.

Bold new flavors, forms and textures bring

added pleasure to the dining experience.

SymphonyIRI’s 15 Years of New Product

Pacesetters report details the power that

can be found in this type of innovation.

From restaurant-quality meals to

unexpected flavor and/or texture

combinations, eating with a twist has really

caught on.

In the coming months, at-home and from-

home eating will remain pervasive. It is a

means of reducing expenditures. But,

consumers do not want to give up

indulgence or excitement along the way.

CPG manufacturers have the opportunity

to bring indulgence and excitement into the

home, building share, margin and goodwill

along the way.


Self-Driven Health & Wellness

Early in the recession, consumers put a

21st Century spin on a very old adage, “An

ounce of prevention is worth a pound of

cure.” Eating to prevent and manage

common ailments became very wide

spread.

As discussed in this and last year’s New

Product Pacesetters reports, innovation

around health and wellness is quite

prevalent these days. These new products

are being enthusiastically received, as they

are helping consumers to achieve their

wellness goals.

Demand for healthier-for-you food and

beverage options will continue to

proliferate in the next several years, even

well after the economy has regained stable

footing. And, as technology evolves and

new ingredients become available, CPG

manufacturers will continue to invest

significant amounts of time and money in

bringing to market food and beverage

brands that serve this very important

market.

Experiential Eating

Gluten-Free

Gluten-free, once a small niche of the U.S.

food and beverage market, has exploded

during the past several years. Packaged

Facts projects that U.S. retail sales of

gluten-free products will reach more than

$5 billion by 2015, driven by a sharp

increase in prevalence of celiac disease

and a range of intolerances to gluten.

Sustainability

During the past several years, players

across the CPG industry have invested

time, money and effort into reducing their

environmental footprint. Facilities have

been redesigned to use more natural

resources, packaging has been

reevaluated for opportunities to reduce/re-

use/recycle, fleets have been retrofitted

with more efficient and/or hybrid engines,

and products have been reformulated to

contain more sustainable/natural/organic

ingredients. The CPG industry is making a

difference in our world, and consumers are

taking notice.

One in three consumers indicate that,

when making brand decisions, whether or

not a product is environmentally

friendly/ethically produced is important to

them. Despite persistent economic

difficulties, this statistic has remained

unchanged during the past year.

In the coming months and years, CPG

marketers should continue to focus on

sustainability as an opportunity. It’s an

opportunity to help Mother Earth, and to

build/fortify consumer relationships.

1Packaged Facts, “2011 Gluten Free Foods & Beverages Report”

1616


$39.8

$40.5

$46.8

$49.4

$54.2

$66.8

$78.0

$78.3

$127.0

$154.11. Crest 3D White

2. Prevacid 24HR

3. Plan B One-Step

4. Next Choice

5. Huggies Pull-Ups Learning Designs

6. Dove Men+Care

7. Olay Professional Pro-X

8. Scope Outlast System

9. Dove Body Wash with NutriumMoisture

10. LISTERINE/REACH TOTAL CARE

Toothpaste/Mouthwash

Gastrointestinal Tablets

Contraceptives

Contraceptives

Diapers

Soap/Shaving Lotion/Men’s Frag./Deodorant

Skin Care

Mouthwash/Toothpaste/Toothbrush/Dent. Acc.

Soap

Mouthwash/Toothbrush/Dent. Acc.

Consumers can also avoid a visit to the

doctor with two other top-10 non-foods

Pacesetters products: Plan B One-Step

and Next Choice. Each of these products

is home-based emergency contraception in

pill form. They offer a convenient, simple

and discrete solution to a very personal

situation.

In similar fashion, consumers are now

achieving faster and better results in the

laundry room with Tide Stain Release in-

wash booster. This new product line works

as a pre-treater or in-wash booster to help

remove tough stains the first time.

Novartis armed consumers with a new,

more powerful way to deal with painful

heartburn with the Rx-to-OTC switch of

Prevacid 24HR. Once again, the success

of this product is the ability to achieve

results normally reserved for professional

care - in this case, a doctor’s prescription,

in an at-home, do-it-yourself treatment

option.

Non-Foods: Top 10 Pacesetters


2010 New Product Pacesetters: Top 10 Non-FoodsYear-One Dollar Sales ($ Mil) Across Food, Drug and Mass

(Excluding Walmart)


The most successful non-foods product

launches of 2010 tell a story of consumers’

quest for the fountain of youth and

indulgence tempered by a difficult

economy. These products illustrate

consumers’ adoption of the “spa at home.”

This isn’t just an ordinary spa, though.

Today’s consumers are looking to see their

at-home spa treatments produce results

traditionally achieved only in professional

spas.

In 2010, beauty care products in the Olay

Professional Pro-X line came to market

with this powerful marketing story. It’s a

story that resonated soundly with

consumers, evidenced by shoppers

opening up their wallets and spending on

these premium-tiered product offerings—

no small achievement in such a

conservative marketplace, and a grand

achievement for marketers looking to drive

purchase behavior and margin during a

period of prolonged economic difficulty.

The Crest 3D White collection does for the

oral care department what Olay

Professional Pro-X and does for beauty

care. It raises self-administered at-home

care to a new level. The product line was

created to bring consumers a single

system that works together to whiten, clean

and protect teeth, without the cost of a

dental visit. And, the line was recently

expanded to include an enamel renewal

toothpaste and 2-hour whitening strips1.

1Drug Store News, March 3, 2011

1717


products that bring the tastes, aromas and

textures of home-cooked pet owner meals

into cats’ dining experience. Dog foods

have similar momentum, with six New

Product Pacesetter brands.

Other areas of non-foods innovation

slowed slightly in 2010, but the focus

remains the same. CPG marketers are

working to bring to market products that

make day-to-day experiences easier and

more effective.

professional quality results into the hands

of consumers. It has been made possible

by the near-constant discovery of new

ingredients/ingredient combinations and

advances in technology.

Detailed earlier in this report, Crest 3D and

Olay Professional Pro-X bring these

results. But, the list goes on. For the year,

29% of health, beauty and personal care

innovation brought professional results

without the professional price tag.

Gourmet pet food innovation gained steam

in 2010. Three Friskies cat food brands

achieved Pacesetter status in 2010, with

Non-Foods: Category Trends


Consumers continue on their quest to look

and feel good despite difficult economic

conditions. In part due to economic and

personal financial conditions, though, that

desire now comes with an added twist–

looking and feeling good on a budget.

Innovation trends across non-foods

categories clearly support these very

important trends. Innovation across

health, beauty and personal care

accounted for three-quarters of non-foods

innovation dollars in 2010, a sharp

increase versus historical trends.

Perhaps the most pervasive trend across

these departments is innovation that brings

Most Active Non-Foods New Product PacesettersNumber of Pacesetters (Product Usage Group)


31% 35%

19%22%

16%

19%6%

8%11%

6%17%8%Other Non-Foods

Home Care – Detergents, Cleaners

Pet Care

Health Care

Beauty Care - Hair, Cosmetics, FragrancesPersonal / Hygiene Care

Average2002-2009 2010

Other :

Baby CarePaper, Plastics, Foils Air Fresheners/CandlesGeneral Merch

Avg.2002-2009 2010

7%6% 2%2%

4%0% 3%1%

*

*

1818


Gillette’s Venus Tropical Disposable razors

have a no-slip handle that makes smooth

shaving easier. And L’Oreal’s Excellence-

to-Go hair color delivers rich color and

stronger-feeling hair in just 10 minutes.

The benefits that are driving non-foods

success will be explored further on the

following pages of this report.

About one in five 2010 launches offered

more natural and/or organic ingredients,

and 14% added vitamins and nutrients. To

be explored later in this report, these

product attributes are increasingly being

added across a number of non-foods

categories and CPG departments.

Convenience remains an important

characteristic of successful non-foods

products, touted across 28% of successful

new brands in 2010. For instance, the

Bounce Fabric Dryer Bar remembers the

freshness so you don’t have to.

Non-Foods: Consumer Benefit Trends


While 80% of non-foods launches brought

more variety into the marketplace, the big

story in non-foods innovation is about

effectiveness. It’s a story about completing

everyday tasks with less effort, and still

achieving better results.

From home care to laundry care, and

beauty care to healthcare, technology is

making it possible and CPG manufacturers

are making it happen. Three-quarters of

2010 non-foods Pacesetters bring new

technologies to the non-foods arena.

Manufacturers of non-foods are also

intently focused on supporting consumers’

wellness goals.

2010 Non-Foods New Product Pacesetters: Top 15 Benefits% of Total Pacesetters Offering Benefit

2%

4%

8%

11%

14%

18%

19%

28%

31%

52%

60%

73%

76%

80%

New Use/Approach/Application

ULTRA, Concentrated Effectiveness

Known Brand/New Category

Aroma Therapy, Theraputic

Added Vitamins/Nutrients

Enhanced Moisturizing

More Natural, Organic

Added Convenience/Portability

New or Unique Formula

Improved/Superior Process

New Design/Pattern/Look

New Technology

Expanded/ Improved Effectiveness

Variety

Performance

Health & Wellness

Variety

Convenience


1919


Consumers looking to pamper their pets

are turning to new pet food launches to do

so. Purina’s Chef Michael’s lines of dry

and wet dog food are chicken, beef, turkey

or pork based meals with real vegetable

garnishes, helping make meal times

unforgettable - at least for the pet owner.

And, because anytime is the perfect time to

celebrate, Fancy Feast Appetizers will

whet a cat’s appetite without fillers or by-

products.

The Febreze Home Collection is a line of

air fresheners in inspirational designs and

unique scents that bring premium home

fragrance with style.

The eye of the beholder has more to

appreciate these days, thanks to new

products that simplify and enhance beauty

and personal care processes.

L’Oreal eye cosmetic lines, including

Extra-Volume Collagen and Telescopic

Explosion are specially formulated to build

volume and length and intensity,

respectively.

And, Garnier HerbaShine utilizes bamboo

extract to improve the condition of hair by

fortifying the cuticle while wrapping it in

radiant, shiny color.

Variety is exploding across non-foods new

product launches. In 2010, 80% of new

non-foods brands brought new variety to

consumers, a significant increase versus

historical trends.

This new assortment of products stretch

across non-foods departments, and bring

consumers an array of benefits, from

aroma to more zip, and everything in

between.

Purex Complete 3-in-1 laundry sheets, for

instance, combine detergent, fabric

softener and anti-static into a single sheet.

With 10X concentrated detergents and

heat-activated softeners and static guards:

It’s Laundry. Simplified.

Non-Foods: Consumer Benefits - Variety


Percent of Non-Foods New Product PacesettersOffering Variety Benefits vs Historical Trend


80%

60%50% 46%

New or Unique Varieties New Design/Pattern/Look

20101997-2010

2020


Products with added nutrients or improved

moisturizing power also gained steam in

2010. In some instances, the brands

brought both. St. Ives Fresh Skin is one

example of this successful combination.

Another example is Nivea “Touch of” body

wash line, including Touch of Happiness,

and Touch of Honeydew, which hydrates

skin while cleaning with Hydro IQ

technology, and simultaneously delivers

other pampering sensations and scents

with innovative combinations of natural

ingredients.

Huggies Pure & Natural, for instance, has

an organic cotton outside, and the inner

lining contains renewable materials.

Hypoallergenic materials and Leak Lock®

protection add appeal for parents looking

for comfort and reassurance when

purchasing diapers for their baby.

For adults looking for a fresh, clean face,

St. Ives Fresh Skin uses “ingredients you

know,” such as apricots, minerals and

olives, naturally revealing fresh, glowing

skin.


In non-foods, wellness attributes fall into

several broad categories, each of which

showed an uptick in innovation during the

past year.

The largest jump is evidenced across

natural and organic related attributes.

Across grocery, drug and mass

merchandise channels, sales of natural

and organic non-edibles grew 17% and

7%, respectively.

Nearly 20% of successful new launches

across non-foods categories, touted

natural and/or organic attributes,

supporting this growth and consumers’

growing demand for these types of

solutions.

Percent of Non-Foods New Product PacesettersOffering Health & Wellness Benefits vs Historical Trend

Non-Foods: Consumer Benefits - Wellness

18%

11%14%

19%

12%8% 8%

11%

Enhanced Moisturizing Aroma Therapy, Therapeutic

Added Nutrients More Natural, Organic

20101997-2010


2121



Percent of Non-Foods New Product PacesettersOffering Performance Benefits vs Historical Trend

Non-Foods: Consumer Benefits - Performance

76% 73%

52%

31%

66%58%

27% 25%

Expanded Effectiveness New Technology Improved Process New Formula

2010

1997-2010

example of a completely redesigned

approach to laundry. One sheet handles

each step in the laundering process, from

washing, to softening and preventing static.

Technology is evolving at an amazing

pace. It is occurring across all CPG

departments and categories, and outside

the realm of CPG. Marketers must stay on

top of changing technology, and constantly

evaluate the feasibility of adapting these

advances for use in their own categories

and brands. These advances will be the

foundation of the CPG world of tomorrow.

Sure deodorant now comes specially

formulated for men, and for women. The

men’s products offer the maximum level of

active ingredients allowed without a

prescription, and masculine fragrance.

The women’s line is formulated to be easy

on the skin, with vitamins and aloe vera,

but tough on perspiration and odor.

From Nexxus comes customized hair care,

marketed under the Nexxus Dualiste line

name. These shampoos and conditioners

will protect hair color while adding volume,

adding hydration or preventing breakage.

Not all new products are highly targeted,

though. On a broader scale and

mentioned earlier in this report, for

instance, Purex Complete 3-in-1 is an

Just over half of new non-foods launches

in 2010 take a new approach or bring an

improved process to their category, often

with the view of a very targeted user in

mind. Up from one-quarter in 2009, just

over half of non-food launches in 2010

offer new and/or enhanced process

benefits.

Several brands are reinventing the oral

care process. In addition to Crest 3D

White, mentioned earlier in this report, the

Scope Outlast product line includes

toothpaste, mouthwash and floss,

spanning several steps of the daily mouth

care ritual. Similarly, the Listerine/Reach

Total Care line combines two separate

brands into a single line that covers

multiple steps in the mouth care process.


22


Non-Foods: Rising Stars


2010 New Product Pacesetters Rising Stars

Projected Top 10 Non-Food Brands(Alphabetical Order)

Charmin SensitiveToilet Tissue

Pampers Dry MaxDiapers


Ensure Immune BalanceWeight Control/Nutrition Liquid/Powder

Purina Dog Chow Healthy Life NutritionDog Food

Gillettte Fusion ProGlideRazors

Schick HydroRazors

Maybelline Volum’ Express the FALSIESMascara

Tide plus Febreze Freshness SPORTLaundry Detergent

Nicorette Anti-Smoking TabletsAnti-Smoking Products

U by KotexSanitary Napkins/Tampons

More simply, Charmin Sensitive is toilet

tissue with added ingredients to enhance

softness and pamper the skin. And

Pampers Dry Max is 20% thinner, yet

provides two times the dryness versus a

competing product.

Easier to use with more effective results -

technology is making it possible. CPG

manufacturers are bringing the

technologies to consumers in the form of a

wide range of CPG products. It is a trend

that will continue in the foreseeable future.

of an indulgence and less of a chore. Men

are very receptive of the concept.

Several of this year’s non-foods Rising

Stars aim to make personal situations

more comfortable.

For instance, in addition to new

technologies designed to provide

enhanced product performance, media

around the U by Kotex launch has been

huge. Marketers behind the launch are

using social media aimed at creating buzz

and breaking the cycle of embarrassment

and confusion that is historically

associated with menstrual periods.

The non-foods arena’s 2010 Rising Stars

illustrate a continuation of trends

evidenced across last year’s up-and-

coming products. From pet care to

personal care, high-end innovation is

making day-to-day experiences easier and

more effective. In many instances, it is

providing indulgence, too.

The push to improve men’s shaving

experience continues with two successful

new razors: Gillette’s Fusion ProGlide and

Schick’s Hydro. A closer shave, less

pulling and skin irritation, a more

comfortable shaving experience - the

technologies differ, but the end goal is the

same - make the shaving experience more

2323


right. Baby Boomers are aging;

consumers want to look and feel good

regardless of their personal financial

situation. The future of non-foods CPG will

be marked by products that bring the

power of professional treatments into the

homes and hands of consumers.

Efficacy

Related to “going pro” trends is the drive to

bring added efficacy to innovation across

non-foods departments. From health and

beauty care to home and pet care,

technology is opening the door to

development of products that make it

quicker and easier to complete everyday

tasks and achieve better results along the

way.

The benefits of being first to market with

the “next big thing” are huge, but

manufacturers that mimic those

revolutionary products are also finding

success.

Non-Foods: Trends to Watch


In the next several years, innovation in the

non-food arena will be influenced by a

continuation of a number of trends

illustrated throughout this report. Some of

those factors are the same as those seen

in the food and beverage arena, and some

are unique to non-foods.

Discussed earlier in this report,

sustainability provides opportunity for

growth across CPG categories and

departments. SymphonyIRI will continue

to monitor and report on sustainability

trends in the months to come.

“Going Pro”

Perhaps the most pervasive trend in the

non-foods arena is innovation around

products that bring professional quality

results into the hands of consumers. It’s a

trend that has been bolstered by

consumers’ self-reliant approach to health

and beauty care and their quest for the

fountain of youth. It has been made

possible by the near-constant discovery of

new ingredients/ingredient combinations

and advances in technology.

These products are thriving because their

results are real, the processes are

convenient and private, and the price is

Sustainability

2424


Sports Drinks

Energy Drinks

Bottled Water


Gum

Carbonated Beverages

Gum


Energy Drinks

Dried Meat Snacks $28.8

$29.6

$29.7

$31.0

$31.5

$37.6

$38.7

$54.3

$55.6

$253.71. POWERADE ION4

2. Monster Nitrous

3. glacéau vitaminwater zero

4. Budweiser Select 55

5. Trident Layers

6. Mountain Dew Throwback

7. Orbit Mist

8. Bud Light Golden Wheat

9. Red Bull Energy Shot

10. MATADOR by Jack Link

Convenience store operators play an

essential role in providing consumers with

a wide array of quick and easy CPG

solutions - from exciting and indulging, to

hunger satisfaction and nutritionally

focused.

As conservative, home-based food rituals

prevail, convenience marketers need to

remain steadfastly focused on bringing fun

and indulgence, while also embracing

opportunities to bring value and

affordability to the marketplace.

stick provides “a snappy texture, kick and

spicy flavor” in an easy-to-open package

well-suited for immediate and/or on-the-go

consumption.

Indulgences are also often satiated in the

convenience channel. Detailed earlier in

this report, Budweiser Select 55 offers the

flavor of a “full calorie” beer but without the

caloric impact. Also from Budweiser, is

top-performer Bud Light Golden Wheat,

offering a slightly sweet first sip, giving way

to a refreshingly crisp citrus finish.

Convenience Stores: Top 10 Pacesetters


2010 New Product Pacesetters: Top 10 Convenience Store BrandsYear-One Dollar Sales ($ Mil)


The convenience channel stands on its

own when it comes to top-selling new

product launches. A destination location

for impulse and immediate gratification

purchases, the top 10 food and beverage

ranking within this channel is very different

versus the same ranking across the

combined grocery, drug and mass

channels.

Trends within the convenience channel

underscore that many consumers have the

need for immediate indulgence and

energy, even if trying to eat healthier.

The Monster Nitrous line of energy drinks,

for instance, “is infused with Nitrous Oxide

to bring a unique texture and smooth

drinkable flavor and buzz that’s bigger than

ever.” Red Bull energy shots also provide

an energy boost, and are “perfect answer

for those times when you need sustained

energy for hours in a sip.”

Detailed in SymphonyIRI’s 2011 State of

the Snack Industry report, more than one-

quarter of consumers view snacks as a

means of satisfying an immediate hunger.

And, 68% of consumers choose meat

snacks when looking for a snack to fill that

need.

MATADOR snack sticks add excitement to

that hunger-satisfying mission. The meat

2525


Conclusions: CPG Manufacturers

New Product Planning

- Closely monitor market and consumer trends to identify opportunities to develop products that are relevant to consumers’ personal needs and offer something that others are not currently satisfying

- Communicate constantly with key consumer and target markets to ensure an intimate understanding of unmet and emerging needs

- Drive research efforts to a more micro-level (i.e., invest in shopper marketing) to identify niche and high-growth segments

- Learn from the leaders: Examine the foundation that makes strong leaders in the food and beverage and non-food sectors

Distribution and Merchandising Strategies

- Ensure distribution strategy closely aligns with the new product target consumer and optimal store mix

- Embrace old and new media to employ a highly integrated marketing strategy that creates buzz and communicates relevant brand attributes and a strong value proposition

- Leverage an integrated merchandising strategy that co-merchandises products with high purchase indices within key and target consumer segments

- Quantify the optimal media mix and distribution points necessary to achieve Pacesetter status across your portfolio of new launches

Product Launch and After

- Continually monitor actual versus projected sales growth in aggregate, across consumer segments and by store

- Continue to monitor consumers’ and shoppers’ pulse and intercept product problems before they become catastrophic

Manufacturers seeking to benefit from the power of innovation as they develop new products that spark the emotional and rational needs of today’s consumers and shoppers should consider the following action items:


2626


New Product Selection

- Closely monitor market and consumer trends to identify opportunities to develop products that are relevant to consumers’ personal needs and offer something that others are not currently satisfying

- Constantly evaluate new products against the needs/wants of key shopper segments and trip missions; focus support heavily against best-aligned opportunities

- Be on the lookout for new sourcing opportunities that provide true innovation, including niche products that create true retail differentiation

- Learn from the leaders: Examine the foundation that makes strong leaders in the food and beverage and non-food sectors

In-Store Marketing and Merchandising

- Collaborate with manufacturer partners to ensure optimal assortment at the store level; leverage localized strategies, as appropriate

- Create cross-merchandising/cross-marketing programs bring solutions-based programs that are highly relevant to key and target shopper segments

- Tie new brands into existing and evolving store marketing platforms (i.e., health and wellness, professional care at home)

Benchmarking and Tracking

- Benchmark and frequently monitor projected sales across target shopper segments at the store level; intercept product problems before they become catastrophic

- Measure brand impact on total category sales

Conclusions: CPG Retailers


Retailers seeking to benefit from the power of innovation as they launch new products that spark the emotional and rational needs of today’s consumers and shoppers should consider the following action items:

2727


Contact your SymphonyIRI client service representative regarding custom analyses leveraging the following resources, or to get more information on these and other new product support products and services available from SymphonyIRI:

Resources


Recognized as the industry gold standard for new product testing, this patented, in-market testing service not only determines if a new product and its launch strategy are on target, but also yields valuable consumer insights to maximize success.

BehaviorScan® New Product Testing

AttitudeLink™ Trier- Repeater/ Non-Repeater Surveys

This survey-based service is designed to provide an understanding of how consumer perceptions of a new product differ among known trier repeaters versus trier non-repeaters.

This model provides accurate year-one and year-two forecasts using initial in-market results, providing performance insights and tools enabling informed decisions about alternative marketing strategies.

IntroCast™ Launch Forecasting

SymphonyIRI’s launch management service delivers an accurate year-one sales forecast based on as little as eight weeks of data and provides alerts as to whether or not the new brand is on track to meet its goals early in the launch process.

Launch Commander™

New Product Profiler is an interactive tool which draws upon a new product database to help end users analyze critical success factors in the strongest new product introductions since January 2002, plan product launches, and set realistic goals for success.

New Product Profiler™

Newly Updated Through 2010: Groundbreaking Report by SymphonyIRIInnovation Highlights from 15 Years of New Product Pacesetters

SymphonyIRI’s Innovation Highlights from 15 Years of New Product Pacesetters is a study of the most successful CPG product launches over the past 15 years. It is designed to capture the essence of successful innovation, providing insights into strategies that have led to true market success. Brands featured in the report are illustrative of best practices in how to create new markets leveraging advanced consumer insights and new technologies.

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FOR MORE INFORMATION

Please contact Susan Viamari at [email protected]

with questions or comments about this report.

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Chicago, IL 60661Telephone: +1 312 726 1221

www.SymphonyIRI.com

About SymphonyIRI Group SymphonyIRI Group, formerly named Information Resources, Inc. (“IRI”), is the global leader in innovative solutions and services for driving revenue and profit growth in CPG, retail and healthcare companies. SymphonyIRI offers two families of solutions: Core IRI solutions for market measurement and Symphony Advantage solutions for enabling new growth opportunities in marketing, sales, shopper marketing and category management. SymphonyIRI solutions uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI helps companies create, plan and execute forward-looking, shopper-centric strategies across every level of the organization. For more information, visit www.SymphonyIRI.com.


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Date post:	02-Jan-2017
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