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March 2004 Times & Trends Executive Summary:
CNEW PRODUCT PACESETTERS
– Top New Non-Food Products of 2003
This month’s subject is a summary brief from a presentation at last
month’s REINVENTING CPG SUMMIT 2004 in San Diego, February 22-24 where the
topic of Creating New Products That Change How We Live was explored in
depth by Valerie Skala, VP, Analytics Product Management, IRI, as part of
the Brand Growth Strategies Breakout Session.
This brief focuses on the top new non-food new products or Pacesetters of
2002-03 based on 52-weeks of dollar sales once a new brand or brand
extension crosses 30% ACV distribution in the food/supermarket, drug or
mass merchandiser channel (excl. Wal-Mart). This analysis draws from
retail scanned sales data between 4-weeks ending February 24, 2002 and
December 28, 2003. To qualify as a New Product Pacesetter, each new name
or new extension had to reach a minimum level of $7.5 million dollars;
there were 106 food & beverage Pacesetters with 52-weeks of sales.
Times&Trends reviews new developments and critical events across all major
CPG categories, key channels and all consumer groups, providing powerful
benchmarking insights to help guide strategic decisions.
This free summary is also accessible via the GMA Web site at
http://www.gmabrands.com/publications/gmairi.cfm
Highlights from the most successful non-food Pacesetters of
2002-2003
This year’s non-food Pacesetters are dominated by new self-care
brands launched in the health & beauty department – a mixture of
performance enhancements, anti-aging and appearance advancements, Rx to
OTC/more affordable treatments and wellness & convenience innovations.
Rx to OTC crossovers big winners in 2003 & 2004. Claritin – $331
million in 2002-03 sales – and Prilosec OTC – projecting to at least $240
million into 2004 – are current #1 and projected #1 non-food Pacesetters.
Successful new non-foods make our lives easier in different ways.
Disposable training pants cut down on laundry, easing the whole
potty-training process. Dental whitening is not just available in the
dentist’s chair. Prescription-strength drugs are more easily accessible
and affordable. And, effective and disposable cleaning broom and surface
cleaning cloths and disposable storage devices reduce house care drudgery.
Consumers have shown a great willingness to pay a “premium” price for
products that deliver superior convenience and ease our lives.
Health & Beauty Department dominates new product activity. Three of
every four non-food Pacesetter sales and 8 of the top 10 ranked brands are
from the HBC department. 104 of the total 146 Pacesetters reaching at
least $7.5 million over 2002-03 are health, beauty or personal care
brands, totaling $2.6 billion, 77% of total sales. In comparison, HBC
accounts for 43% of total CPG non-food consumption for 2002-03.
High Tech innovations create stronger, more-effective expectations.
For most of the top non-food Pacesetters, technological advances brought
more-effective performance benefits to consumers, from new allergy reliefs
to more comfortable shaves.
Cosmetics, skin care & dental care most active Pacesetter categories.
The differences between health, personal, and beauty care are blurring as
marketers appeal to aging consumers and their growing interest in
maintaining health, but restoring youthful appearances. Teeth whitening
products provide oral care, but also restore youthful smiles. Skin care
and facial cosmetics attend to dry skin and smooth wrinkles in the
process.
Health Care innovations bring more affordable drugs to the shelf.
Crossing over from Rx to OTC brings do-it-yourself prescribing and more
affordable prices to consumers. New treatment expectations are gaining
momentum and gaining sizable results.
House care activity extends recent technological innovations. In
recent years, house categories captured new trial and big numbers through
“more effective” innovations – shower cleaners, air fresheners, aromatic
candles, rug deodorizers, magical mops, oxy-detergents to name some. This
year’s Pacesetter activity brought enhancements and spin-offs to these
technologies, but resulting generally in smaller sales results.
It was a big year for self care Pacesetters – the CPG industry is
taking care of us. Quality, performance, convenience, affordability,
wellness and indulgence innovations are emerging and blurring.
Here’s a chart from the brief with the top ten food & beverage Pacesetter
rankings:


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