For consumer goods executives, keeping up with all of the reports on how difficult it is to win in the industry might be just as difficult as actually winning in the industry. Countless articles and reports repeat Clayton Christensen’s statistic that 95% of new products fail, or note how very few new products end up being breakthrough innovations that meaningfully impact their categories. Many more detail how new product launches fail to meet a variety of specific metrics, such as covering development costs or having a material impact on the company’s growth trajectory. Most recently, however, Nielsen revealed its list of 14 Breakthrough Innovation Award Winners. Of more than 3,400 consumer goods product launches in 2012, only these 14 met Nielsen’s strict criteria for breakthrough innovation: (1) distinctiveness – delivers a new value proposition to the market; (2) relevance – generates a minimum of $50 million in year-one sales; and (3) endurance – achieves at least 90% of year-one sales in year two. Looking at the patterns among these 14 game changers reveals several best practices that consumer goods companies can leverage to create their own success stories.
New Markets Blog