Three New Product Innovations

Marketers know first-hand how challenging it is to introduce successful new products - and the stakes involved when new products fail. There are many reasons new products do not succeed.  Some fail because of the offer, while others fail because of the execution. Still others fail because neither the offer nor the execution can fully overcome marketplace constraints, such as category penetration and fragmentation.With so many variables having the potential to impact new product success, it is difficult for Marketers to discern which factors they can and should control to increase the chances for success. Until now. Leveraging its global DESIGNOR174 database of 10,000 new products and more than 55,000 established brands, Ipsos Marketing identified three factors crucial to new product success: 1. Relevance 2. Expensiveness 3. Differentiation The absence of purchase intent in the list above may surprise many Marketers who have traditionally used this measure as a benchmark for success.The omission of purchase intent is purposeful. This paper provides empirical evidence for the superiority of relevance, expensiveness and differentiation in predicting new product success.