Success depends on early acceptors

Introducing new products is risky, costly, but unavoidable. Though product development and introduction cost tens of millions, over 80 per cent of new products fail within three years. The surviving ones however, can significantly improve market position and profitability. A successful new product can bring an increase in market share and sales, as well as margins for manufacturers. For retailers, a new product can bring expansion in a category and more profit. If consumers accept a new product, this gives them the opportunity to spend more and feel more satisfied. The fate of a new product is often decided during the introduction phase. If marketing activities are less than optimal, this can prove to be fatal. There are two major groups of consumers; the early acceptors, who buy new things enthusiastically and the slow acceptors who wait to see what others say. Feedback from early acceptors, who are like a sensitive barometer, can help marketing professionals to optimise their strategies. Nielsen and one of its companies called BASES – the world leader in forecasting prospects for new products – have developed a method to identify the potential early acceptors of new innovations. According to this research, we can regard early acceptors as optimal consumers, for both manufacturers and retailers. A major difference was found in the behaviour of the two groups: Early acceptors like to experiment and are bored of old things, while slow acceptors feel comfortable with familiar products. Early acceptors also like to share their experience with their families and friends. Demographic criteria does not seem to have an influence on who becomes an early acceptor. According to market researchers, early acceptors are also likely to become regular purchasers of the category and to buy significantly more products than others.