NEWS12 December 2016

Packaging the ‘dark horse’ of NPD success

Europe FMCG News Retail Trends UK

UK – Packaging design is a major factor behind the most successful product launches over the past two years, according to research from Nielsen.

In its annual Breakthrough Innovation Report – in which Nielsen analysed 9,900 product launches across Europe – it selected 11 that truly broke through.

The 11 – which includes Colgate®, Air Wick® and Whiskas® – generated at least £7.5 million sales in the first year of launch (€5m for launches in Eastern Europe) and maintained at least 90% of that figure in the second year.

Source: Nielsen

Ben Schubert from Nielsen’s Innovation Practice in Europe and co-author of the report, said: “Package design receives little attention compared with other marketing disciplines, and its impact tends to be vastly underestimated.”

“Back-to-basics marketing such as how essential it is to stand out at the shelf has become slightly lost due to marketers’ increasing focus on where to advertise in a media-saturated world. Nearly 60% of product decisions are made at the shelf, and 56% of European consumers say in-store discovery is one of their top information sources for new products, compared with 45% for TV ads.”

Schubert points to Gold Mine Beer’s Zhivoe, Russia’s first premium unpasteurised beer, as one of the most striking examples. Because unpasteurised beer has a limited shelf life but a fresher taste, the brand’s agency created a bottle that resembles a freshly poured glass of beer.