New product launches have a notoriously high failure rate. In fact, Nielsen once pegged the failure rate of new consumer packaged goods at a staggering 85%. Launches can come in many forms, including line extensions, such as a new size or flavor within a family, “me-toos” (copycat product from a different brand) and original innovations.
Apparently, it’s a tiny fraction of shoppers who determine if a new consumer packaged goods (CPG) product will succeed or fail. Research by sales, marketing and digital media specialist Catalina indicates that consumer concentrations of less than 1% account for the vast majority of volume for most new CPG products. What’s more, the study uncovered