Understanding the market increases success

Monday, 11 September, 2006

Understanding the market can quadruple the chances of a successful product launch according to Dr Ad Juriaanse, from food research company NIZO.

Juriaanse found it was possible to improve the launch success rate from 10% to nearly 40% by understanding market forces.

He said food scientists must stop thinking "what can I do with milk?" and start wondering how they can use milk to achieve the four ideals of the marketplace:

  • Pleasure;
  • Fitness/wellbeing;
  • Convenience;
  • Sustainability.

"Forces in the marketplace have changed dramatically," he said.

"Supermarkets are extremely powerful and the driving force for the innovation process comes from those suppliers who adjust to what is being asked for from the marketplace."

He explained that while functionality of food was important, the motivation of the buyer was another vital factor. People seek to buy "responsible' products, he said.

"The same holds with new technology. If you cannot link a traditional product to a new emotional benefit, it's not going to help," Juriaanse said.

He told the forum of 150 national dairy industry bosses that while innovation is good, it needs to be within a structure. "The better you structure the innovation, the better your launches will be.

"And speed is another critical aspect. Marketplaces have changed so much. Companies work in a competitive marketplace and they want answers now. Speed is extremely important and having a well-structured process is critical."

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