With fewer and fewer new products succeeding, it is little wonder that the vast majority of ‘new’ launches are either line extensions or use an existing brand name.
Success appears to accompany the safety and familiarity of recognised household names, which is perhaps no great surprise. There are around 20,000 SKUs available in a typical supermarket. As the average household will buy around 350 SKUs in a single year it could be argued that, notwithstanding differences in personal preference, the market place is becoming saturated.
However, many of these new products launched do sell prolifically and often in addition to the sales of the original variants. These successful products tell us a lot about the attitudes of consumers today and also about the prices of these products.
No tricks, just treats
Of the top ten best selling new products from 2003, two are from the health and beauty sector while the remaining eight are all either chocolate, biscuits or snacks. So while the media has been reporting the rise in obesity in the /country-region>/country-region>>/>/country-region>>/>>/>>/>/country-region>>/>>/>>/>>/>>/>>/>>/>/place>/place>>/>/place>>/>>/>>/>/place>>/>>/>>/>>/>>/>>/>>/>UK/place>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>/country-region>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/> and the latest dieting fads, the nation has been treating itself.
Bisc &, the biscuit incorporating a range of confectionery brands from the Masterfoods stable, has performed impressively by managing to appeal to consumers of both confectionery and biscuit markets.
Nestle has revived KitKat with the sharing bags in which KitKat Kubes are presented. Along with Terry’s Chocolate Orange Segsations, this trend provides consumers who might feel guilty about eating chocolate the opportunity to treat themselves in smaller quantities, in theory at least.
Cadbury has done a fine job of rebranding itself with a range of new additions, the most successful of which have been in block chocolate format. One of their flagship brands, Flake has also undergone a revitalising overhaul in the form of Dipped Flake, a chocolate-covered version of the original.
The king of the savoury snacks market, Walkers, has again managed to launch a winning product, this time with Sensations Oriental Crackers. With premium-priced brand Sensations already a huge success with its initial range, a venture into the booming ethnic market was as inevitable as its subsequent success. Tom Newitt, Sensations Brand Manager, said: ‘We are very pleased with its performance. It's a fantastic product and has been largely incremental to the brand. The brand is proving to be very strong and we will continue to invest in NPD to deliver growth.’
Looking good
Just as predictable was the huge sales generated by the latest shaving offering from Gillette. Sales of Mach3 Turbo blades alone amounted to more than £32m on an annualised basis, while the razors (or handles) reached almost £9m. The high price point for these products contributes significantly to this huge figure but perhaps more impressive is the loyalty shown by consumers to buy into the brand, and also Gillette’s ability to continuously improve their products.
Still in the area of maintaining or even improving personal appearance, P&G’s Olay Regenerist is an anti-ageing moisturiser that regenerates skin cells. The anti-ageing skin care market is one of the fastest growing areas of health and beauty and products of this type look set to dominate in the years to come.
Of the more recent launches, those which came onto the market since the start of 2004 and have already made an impact, the story is much the same as in the previous year. It is worth noting that the annualised sales for these products are based on as little as 12 weeks of data. However, as the first three months of a new product’s life are amongst the most crucial, in the /country-region>/country-region>>/>/country-region>>/>>/>>/>/country-region>>/>>/>>/>>/>>/>>/>>/>/place>/place>>/>/place>>/>>/>>/>/place>>/>>/>>/>>/>>/>>/>>/>UK/place>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>/country-region>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/>>/> at least, it does serve as a decent indicator of its future.
Walkers has continued its foray into ethnic snacks with Sensations Poppadom Bites, while Pringles has made something of a comeback with Dippers, shaped specifically for use with a dip. Backed by a heavyweight television advertising campaign, Doritos Latinos have begun life on the shelf with good early sales.
On a sweeter note, Bassetts Fruit Allsorts has made an energetic start with the classic liquorice variant taking a backseat temporarily. And finally, a genuinely new product from Masterfoods in the shape of Aquadrops, which offer ’instant hydration and lasting refreshment’. And who could ask for more?
| New since January 2003 | Annualised sales (£m) |
| | | |
| 1. | Gillette Mach 3 Turbo Male Blades | 32.3 |
| 2. | Bisc & Chocolate Biscuits | 24.0 |
| 3. | Walkers Sensations Oriental Crackers | 21.7 |
| 4. | Nestle KitKat Kubes | 21.0 |
| 5. | Cadbury Dairy Milk Bubbly Block | 16.2 |
| 6. | Terrys Chocolate OrangeSegsations | 14.8 |
| 7. | Cadbury Dairy Milk Crispies Block | 13.8 |
| 8. | Cadbury Dairy Milk Mint Block | 13.5 |
| 9. | Olay Regenerist | 11.7 |
| 10. | Cadbury Dipped Flake | 11.6 |
| | | |
| | New since January 2004 | Annualised sales (£m) |
| | | |
| 1. | Walkers Sensations Poppadom Bites | 14.6 |
| 2. | Pringles Dippers Snacks | 12.1 |
| 3. | Bassetts Fruit Allsorts | 10.7 |
| 4. | Aquadrops | 9.3 |
| 5. | Doritos Latinos Tortilla | 8.3 |
For more information contact:
Tim Eales
E-mail: tim.eales@infores.com
Phone: +44 (0)1344 746038