New food and drink products likely to struggle.
New food and drink products likely to struggle: to find Last year,
marketers launched tens of thousands of new food and drink products
despite the fact that the costs of marketing and promoting a new product
often top $50 million, noted The Wall Street Journal. Still, new
products face tough odds. The average American family turns to the same
150 items for as much as 85% of its household needs, says Jack Trout,
president of marketing firm Trout & Partners Ltd. Only about 2% of
new brands and brand extensions hit $100 million in first-year sales,
considered the threshold for success, according to Information Resources Inc.
Marketers pressure to innovate, for a variety of reasons. Powerful
retailers are quicker than ever to pull a lagging product off their
shelves, sometimes substituting their own private-label version. Stores
also are apt to cut prices of branded items unless shoppers find
something new or exciting in them. Marketers must work harder than ever
to stand out in superstores that in many cases stock as many as 100,000