Satisfy Consumers’ Appetite for Innovation
Consumers have a strong appetite for innovation. They’re increasingly demanding and expect more choices. In the United States, more than six in 10 respondents (65 percent) to a recent Nielsen survey say they like when manufacturers offer new products, and more than one-quarter (31 percent) say they purchased a new product during their last grocery shopping trip.
But new product success may be hard to come by. Brand competition is intense, and shelves are crowded. Successful product launches are a combination of focus and commitment to product development, creative marketing, smart leadership and, above all else, an in-depth understanding of what drives consumer purchasing preferences.
Price it right
Even though the recession ended more than six years ago, 57 percent of Americans still consider the country to be in a recession, according to Nielsen’s second-quarter 2015 Global Survey of Consumer Confidence and Spending Intentions. And these recessionary feelings could create a barrier to new product trial, as more than four in 10 U.S. consumers (44 percent) say recent economic events make them less likely to try new products.
When it comes to the new products consumers wish were available but are not, products at affordable prices are the most desired. Forty-four percent of American survey respondents say they wish more affordable products were available, 20 percentage points above the next-highest desired attribute, wanting new food products (24 percent).
Consumers need to stretch their money, and they’re looking for products priced within their budget. Savvy retailers start innovation with understanding what trade-offs consumers will make when they can’t afford a product.
Make it convenient, healthful
Time pressures and stress are facts of life. Shoppers want products that help restore balance and free up time to do the things they value most. One-fifth of American respondents (21 percent) say they purchased a new product because it was convenient, while fewer (13 percent) say they purchased it because it is tailored to a very specific need or made their life easier (16 percent).
Consumers’ desire for convenient new products is even higher. Close to one-quarter of respondents (23 percent) say they wish more products were available that are convenient to use or make their life easier (21 percent).
The United States also is facing a health crisis — 60 percent of American respondents to Nielsen’s recent Global Health & Wellness Survey say they are overweight, and 50 percent are trying to lose weight. And they’re looking for help from food and beverage retailers to make healthier choices.
On the list of products consumers can’t find in stores but wish they could are products made with healthier ingredients (20 percent), followed closely by products fitting a healthy lifestyle (19 percent).
Retailers looking to establish or expand their presence in this area should start by looking at what they could remove from foods rather than what they could add, as consumers want to go “back-to-basics” with fresh, natural and minimally processed options.
Make it green
While most consumers say they care about the environment, when it comes to purchasing eco-friendly products, words and deeds often part ways. Only 7 percent of global respondents say they purchased a new product because it was from a brand that cares about the environment. Even fewer (4 percent) cite corporate social responsibility as a reason for making a new product purchase.
But insincerity might not be driving this gap. In fact, product availability, or rather, unavailability, might be partly to blame. Fifteen percent of American respondents say they wish more ecologically friendly products were available, and 12 percent wish more products were committed to positive social impact.
Put it all together
In simple terms, the demand-driven insight is at the center of the innovation process. Not all ideas will be winners, but prioritizing resources and investment behind a few projects with strong odds of success will put retailers on a path to success.