Sunday, July 1, 2012

A “Pivotal” 1.5% Of Shoppers Decide Fate Of New CPG Products.

Just 1.5% or 1 in 67 shoppers, accounted for 80% of volume during a 12-month window following their introduction, according to a new report published by Catalina, the Florida-based consumer-driven marketing firm. 

The report explores the purchasing behavior of more than 41 million US consumers and shows that a tiny fraction of shoppers determines the success of new consumer packaged goods product launches.The study examined 25 of the top product launches of 2010, and found that for line extensions, 63% of sales came from existing brand buyers, of which almost half of those sales cannibalized existing brand purchases.

This tiny percentage of shoppers that accounted for most sales was worth 64% more per capita than the average new brand trier. Even the biggest selling new products in the study depended on extremely small percentages of shoppers for sales. The two top selling products tracked in the study, an enhanced water beverage and a Greek yogurt, depended on just 1.4% and 2.7% of consumers, respectively, to drive 80% of their sales.

This might prompt brands to re-look at "single message suits all" kind of marketing and start to build intelligence that helps target the 1.5% shoppers. Read more here

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