Credit crunch fails to stifle innovation, claims survey
Despite the present economic climate, a new study of UK brand managers has disclosed that over half plan to launch the same number - if not more - of new products this year than last.
The study, by brand management specialist Sun Brand Technologies, reported that 58% of those questioned planned to launch the same number, or more, products this year than in 2007, in a bid to keep consumers spending.
Meanwhile, the latest roundup of innovative products internationally from Datamonitor's Productscan online database points to the increasing appeal of probiotics. Datamonitor claims that these active cultures are being included in numerous products, including savoury snacks, while a probiotic/prebiotic combination has made it into frozen yoghurt.
At the same time, Datamonitor claims that floral flavours are seeing increased popularity as food flavourings with categories as diverse as bottled water and chocolates showing increased interest in floral flavours.
Of those surveyed, 85% felt there was constant pressure to introduce new brands, with retailers and consumers driving demand in equal measures. Much of this pressure can be attributed to competition for shelf space, which is said to be at an all-time high.
Products now have significantly less time to prove their popularity than ever before, so innovation is crucial, claims the report. Around 42% of those questioned believed that the on-shelf trial period had shortened considerably in the past five years, with the majority of products having just a few months to succeed.
Regardless of this, more than half of respondents believed that the high level of new product development (NPD) was justified.
Cost was predicted to be the main issue affecting NPD over the next five years, according to 80% of respondents. The speed of getting a product to market and environmental issues were also predicted to be critical factors for successful launches in the future, by 60% and 52% of respondents respectively.
Martin Hawkins, executive director of Sun Brand Technologies, which markets the Odin brand management tool, says: "It really is enlightening to see that NPD is still thriving.
"However, firms really need to think about how they can strategically address issues such as cost, the environment, speed-to-market and consumer demand if they are to stay ahead."
