Because new products are catalysts for the success of CPG companies, manufacturers invest sizable sums of money, time and enthusiasm into innovation and development. In fact, 190,000 new UPCs hit CPG retail shelves in 2013, accounting for an estimated 15% of total moving UPCs in the form of more than 9,500 new brand launches. Some of these innovations accumulated sizable year-one sales dollars, while others failed to live up to expectations.
There is no question that innovation plays a critical role in the growth process. In their first year, the brands highlighted throughout IRI’s 2013 New Product Pacesetters report earned an average of $35 million. The dollars, though, are just the tip of the iceberg. New products bring excitement, buzz and competitive advantage. They establish and protect category leadership. They break into entirely new categories. In short, they are game-changers for CPG companies and life-changers for consumers.
To provide guidance to CPG innovators looking to seize the full potential of successful innovation, IRI developed a framework that is grounded in an extensive analysis of UPCs new to CPG retail aisles during the past year. It show how establishing and following a disciplined new product innovation process breeds successful new products and minimizes costly mistakes.
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