INSERTING and REPLACING 81% Of Consumers Are Unable to Name New Products Launched in 2006

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Insert two footnotes at bottom of table, in release dated, February 28, 2007: "(a) ADWEEK projected statistic" and "(b) Mintel Global New Products Database (GNPD)"

To capture consumer attention requires using an array of launch tactics that create multiple touchstones for consumers to build recognition for your new product.

    The corrected release reads:

81% OF CONSUMERS ARE UNABLE TO NAME NEW PRODUCTS LAUNCHED IN 2006

Despite the fact that advertising spending was up from $271 billion in 2005 to $285 billion in 2006(a), 81 percent of consumers could not name one of the Top 50 new products launched in 2006, an all-time high for lack of recognition--up from 57 percent the previous year, according to the annual Schneider/Stagnito Communications/IRI Most Memorable New Product Launch Survey. "Relying on advertising alone for new product launches simply isn't working," said Joan Schneider, author of New Product Launch: 10 Proven Strategies. "To capture consumer attention requires using an array of launch tactics that create multiple touchstones for consumers to build recognition for your new product."

This year's survey showed that most consumers learned about the 32,624(b) new products launched in 2006 the old fashioned way, as 73 percent of Americans polled said they received new product information from TV commercials or infomercials. When the study looked at how people learned about new products and what influenced them to purchase, free samples lead the strength of influence index with 66 percent, followed by received a coupon with 55 percent, and recommended by family and friends and television commercials or infomercials tied for third with 46 percent. When asked the likelihood of buying a new product after sampling, 96 percent said they were very or somewhat likely to buy a product they sampled.

Television commercials received mixed reviews from consumers as 83 percent stated they enjoy watching commercials on TV at least sometimes, but 70 percent stated they try to avoid commercials. Of those who avoid TV commercials, 16 percent used OnDemand or Tivo and 79 percent leave the room or do something else. After viewing a television ad, 64 percent said they were very or somewhat likely to visit a company or product's Web site.

Moving into the Internet world, online advertising was named by 21 percent of those polled as a way they learned about new products last year, and online articles or product reviews were named by 15 percent as a source of new product information.

Emerging digital media, such as online videos and online communities, are growing in influence among younger consumers, with 28 percent of those between ages 18 and 34 saying these sources influenced their decision to buy new products in 2006. Across all age groups, two out of ten Americans polled said digital media influenced them to purchase a new product last year. The data from this survey suggests that advertising through digital media is still emerging, but it is starting to gain a foothold with early adopters and younger consumers aged 18-34.

Top 10 Most Memorable New Product Launches 2006

This year's top 10 Most Memorable New Product Launches include innovations from trusted brands as well as products with new technology or distinct health benefits. Based on feedback from more than 1,000 consumers nationwide, 24 percent of consumers polled online reported KFC's Famous Bowls(TM) as the year's Most Memorable New Product Launch. The remaining Top l0 2006 Most Memorable New Product Launches include: Nintendo(R) Wii(TM) at 22 percent; Glade(R) PlugIns(R) Scented Oil Light Show at 19 percent; McDonald's(R) Snack Wrap at 17 percent; Activia(R) Yogurt at 11 percent; Dr. Pepper Berries & Cream at 11 percent; Gillette(R) Fusion Power(TM) at 10 percent; Wish-Bone(R) Salad Spritzers(TM) at 9 percent; Crest Whitestrips(R) Renewal at 8 percent; and T.M.X.(TM) Elmo at 8 percent.

New Product Adoption Rate

"The survey findings reinforce the tremendous effort that marketers must devote to consumer research and message development in order to build a successful launch. The 12-to-24 month product development process must culminate in a multi-sensory marketing program, including the sounds and images of a typical 15- or 30-second ad, that can grab a consumer's attention, educate them, and motivate them to purchase. Most people don't appreciate how hard that is to do, and how important. The $5M-$50M million dollars typically spent to distribute advertising for a new brand will be largely wasted if the ad itself is weak. So, the people who worked on launches such as Glade Plug-In Scented Oil Light Show and Activia deserve high praise for their achievements," advised Valerie Walker VP Shopper Insights, IRI.

Awareness of new products ranked high for new "fast food" products at both ends of the calorie scale; two-thirds of respondents were aware of KFC(TM) Famous Bowls (720 calories) and 55 percent were aware of McDonald's(R) Snack Wrap (320 calories). Other food products, such as Activia(R) Yogurt, a pro-biotic yogurt, and Wishbone(R) Salad Spritzers(TM), a one calorie-per spray salad dressing, reflect a continuing consumer need for healthful products that assist in managing weight and other health issues. In contrast, new technologies embedded in products such as Nintendo(R) Wii and T.M.X.(TM) Elmo captivated audiences with their advanced capabilities and created "buzz" and high consumer demand this past holiday season.

Leading Product Trends for 2006

The 2006 Schneider/Stagnito Communications/IRI Most Memorable New Product Launch Survey also asked consumers which trends influenced their purchases most. Foods with whole grains or no trans-fat emerged as influencing trends on purchase decisions, with 32 percent and 28 percent of respondents, respectively. Following these top two trends were healthy "fast foods" and foods and beverages that help with weight management.

"It's long been recognized that while Americans talk about wanting to eat healthier food, they aren't consistent with their purchasing choices," said Joan Holleran, editor of Stagnito's New Products Magazine. "How else can you explain the fact that the McDonald's Snack Wrap and the KFC Famous Bowls topped our list of new products consumers had actually purchased, 28 percent and 23 percent, respectively?"

Among the least influential trends were organic food products and anti-aging products, with only 14 percent and 13 percent of consumers, respectively, reporting a strong influence of these trends on their purchase behavior. "The poll results regarding organic food products were especially surprising given significant media attention given to organic products in past years," said Holleran. "Organic products are growing at double digit rates versus 2.5 percent for the CPG industry as a whole. Despite the growth of the organic category, it remains a small part of the market overall."

Statistics from Schneider/Stagnito/IRI Most Memorable New Product Launch Surveys (2002-2006)

With the number of new products rebounding to 32,624 in 2006 after dropping to below 29,292 in 2005, identifying effective marketing techniques to launch a new product is vital for manufacturers and retailers. "In today's environment, breaking through the media clutter is more difficult than ever," said Schneider. "Having looked at the Most Memorable New Product Launches for five years now, it is more important than ever for marketers to use all the tools at their disposal to get consumers to notice their new product. We call this new proprietary method of marketing new products by surrounding the consumer with product messages 'Immersion Marketing'."

According to Holleran, "In today's saturated consumer goods marketplace, manufacturers need to position their products via a number of breakout marketing strategies. Manufacturers need to continue to use a variety of marketing tactics to put new products into the hands and minds of consumers to motivate them to try and buy new products. Immersion Marketing(TM) which surrounds consumers with product information in a variety of ways is the key to successful new product launches."

"We were delighted to work with Schneider Associates, Stagnito Communications and IRI to expand their research on demographic trends in consumer new product launches," said Susan Robinson, vice president, comScore Networks. "We found that overall, women and younger consumers are more aware of greater numbers of new products. This is useful information for companies that may need to adopt different strategies to reach their specific target markets."

Survey Partners

Author Joan Schneider, president of Schneider Associates, a Boston-based marketing communications firm, has written New Product Launch: 10 Proven Strategies, a book on how companies can improve the launch of new products and the re-launch of icon products. http://www.launchpr.com

Stagnito Communications, an Ascend Media Company, is publisher of 15 trade magazines including Stagnito's New Products Magazine, Beverage Industry, and Confectioner. http://www.stagnito.com

comScore Networks is a market research firm and global Internet information provider that measures the digital age. http://www.comscore.com

Information Resources, Inc. is a global leader in providing enterprise market information solutions and services for the consumer packaged goods (CPG), retail, and healthcare industries. http://www.infores.com

Mintel Global New Products Database (GNPD) monitors worldwide product innovation in consumer packaged goods markets, offering unrivalled coverage of new product activity for competitor monitoring, category awareness, and new product idea generation.

The Most Memorable New Product Launch Survey, now in its fifth year, identifies which product launches are most memorable to consumers, where consumers obtain new product information, what influences new product purchase, and identifies trends on purchasing behavior. The survey was based on feedback from more than 1,000 respondents aged 18 or older and was conducted online in the United States during December 2006 by ComScore Networks, a market research firm that specializes in measuring the digital age. Each respondent answered 30 questions and provided demographic data.

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Patrick Richardson
Schneider Associates
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