Just 1.5% or 1 in 67 shoppers, accounted for 80% of volume during a 12-month window following their introduction, according to [pdf] 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 (CPG) 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 report shows just how few consumers make or break even the most successful new CPG product launches,” said Todd Morris, executive vice president of brand development for Catalina. “With such small shopper concentrations (1.5%) 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.”
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. Read the rest at Marketing Charts.