In studying insights from about 35 recently launched new products in a variety of packaged goods categories, Nielsen found that most initiatives are preceding as expected. In fact, about three-in-four showed little evidence that the down economy is creating a drag on sales.
Mike Asche, VP of Client Consulting, and Rob Mooth, VP of Client Consulting at The Nielsen Company, writing in a recent Consumer Insight issue, point to BASES data that reveals only slight variations in consumers’ purchase interest and value perceptions in response to changes in the economic climate over the last three decades. So their advice to CPG marketers: “If a fundamentally sound innovation process has shown results during ‘normal’ times, then the right principles are likely in place.”
But surely the launch of premium items during a recession comes with greater risks? The answer from Nielsen is… yes, but those risks can be mitigated if marketers understand their brand’s limits and if the new products have a clearly stated “why to buy.”
