Key factor for new products: proportion of people who try it

According to Jonathan Banks, research director of Nielsen UK, there are three factors influencing the development of new products at present: consumer confidence, the expansion of private labels and the requirement that the product should be a true innovation. Consumer have less money to spend on food than in the past. They are also worried about their jobs and financial position. Private labels are becoming an increasingly attractive option for consumers to satisfy their needs. This process has started with „me-too” products, later followed by the policy of low price. Then came good quality private labels in Western Europe, including specialised sub-brands devoted to specific trends, like health. S In times of recession, three factors need to be examined. First: how vulnerable is a category and what growth can be expected after the recession? How are sales in different categories influenced by recession? In which categories is recession the smallest and where is it the biggest? Second: what effect do macroeconomic changes have on consumption of a category? Third: factors like pricing, promotions, segmentation should be looked at carefully in order to implement changes which minimise the effects of recession. Four international consumption trends should be taken into consideration by product developers: health and wellness, fun and entertainment, convenience and practicality, ethicality. The key factor in influencing the sales of a new product is the proportion of people who try it.