Magazine: Successful innovations in Europe and in the United States

By: trademagazin Date: 2015. 03. 04. 12:33

Breakthrough Innovation, a Nielsen project in the USA examined the market performance of 17,000 new products between 2008 and 2012. Conducted with the leadership of senior Nielsen vice presidents Rob Wengel and Teddy Hall, the study found that if consumers realise that certain brands consistently offer them important things, then they will keep inserting those brands into their daily lives again and again.

 Mile Gabriella ügyfélkapcsolati vezető Nielsen

Mile Gabriella
ügyfélkapcsolati vezető

In Europe retail sales of 12,000 new food, household chemical and cosmetics products, altogether 61,000 SKUs were examined between 2011 and 2013. David Hood was the head of Nielsen’ Breakthrough Innovation project in Europe, working with managing director of innovation Johan Sjöstrand. They found that less than 10,000 units were sold from two thirds of the innovations. Three out of four innovations disappeared from stores after the first year. Only seven from the 12,000 products met all conditions and qualified as a Breakthrough Innovation. Three important criteria were: 1. Being special, different from other products – representing new value in the market, 2. Market significance – in the first year after launch sales had to reach GBP or EUR 10 million, 3. Endurance – in the second year sales had to amount to at least 85 percent of first-year sales. How can the innovation process be changed to become successful? Mr Hood and Mr Sjöstrand’s answer is simple: all successful products have made customers’ lives easier or better. The teams behind these products were successful because they examined why they would not buy the new product, dared to fight consumer prejudice and misconceptions, convinced hesitant consumers, changed the categories or created new ones and organised the innovation project and the product launch in a disciplined fashion.

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