Super-Consumers Decide the Success of New CPG Products

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As marketers prepare to launch and promote a new product, they may imagine that they need to appeal to a wide range of consumers to succeed. Not so, say the analysts at Catalina. A surprisingly small number of consumers can make or break the success of  a new consumer packaged product (CPG).

Catalina studied about 25 recent product launches. In most cases, about 1.5% of consumers drove 80% of product sales. Analysts learned that this small group of consumers – high-volume category and high-volume brand buyers – are far more likely than average to try new products.

  • New product launch – 3.8 times more likely
  • New product line extension – 5.8 times more likely

It turns out that these consumers are also repeat buyers. Brand shoppers are 28% more likely than average to buy the new product again while category shoppers are 19% more likely to do so. This repeat buying could come at the cost of sales for a brand’s other products though. Up to 27% of new product sales actually cannibalize existing sales.

In reviewing these results,  Todd Morris, executive vice president, brand development, for Catalina commented, “With such small shopper concentrations driving the success of product launches, it’s critical for a brand’s advertising and promotions to reach the consumers who are most likely to try and repeat.”

[Source: Success of New CPG Products. Catalinamarketing​.com. 21 May 2012. Web. 29 May 2012]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.