Beverages

Not-So-Total Recall

Recession fears have consumers "sticking to what they know," less likely to recall new products
CHICAGO -- The National Bureau of Economic Research, the nonprofit group of economists that officially classifies business cycles, has officially declared that a recession has been in progress since December 2007. The economic crisis has changed the way many people live, and how they spend. And although food, snacks and beverages fared relatively well, the recent Most Memorable New Product Launch Survey (MMNPL), conducted by Schneider Associates, Mintel International and IRI, found that 69% of respondents could not remember a single new product launched during 2008.

Survey [image-nocss] participants were given a list of 50 new grocery, personal and beauty care, technology and toy products from 2008.

The average American's attention was "pulled in many different directions simultaneously" in 2008, according to Lynn Dornblaser, director of trend insight at Mintel. "The fervent presidential campaigns and election genuinely excited many voters. But even more, we saw people deeply impacted by the financial crisis. From higher food prices to unemployment to housing scares, economic struggles seriously affected the way many people lived this year."

Char Partelow, senior vice president of Panel Consulting Group at IRI noted that Americans cutting back on spending might be less likely to risk trying a new product. "Because many people can only afford the basics, they're sticking to what they know, products and services that bring them comfort. We found that 'a trusted brand name' ranked as the No. 1 quality respondents looked for when buying new products. Many Americans are simply less interested in 'risking it' on a new product."

That phenomenon also explains the prevalence of familiar food and drink brands on the MMNPL survey winners list. Of the products most frequently remembered in aided recall, five were new twists on familiar food and drink: Bud Light Lime, McDonald's Southern Style Chicken Biscuit & Sandwich, Kraft Mac & Cheese Crackers, Gatorade G2 and Yoplait Fiber One. "Consumers recalled new product launches from brands they know and love. McDonald's, Kraft and Bud Light are trusted brands that gave people a new variation on something familiar," said Julie Hall, vice president of Schneider Associates.

For the second year in a row, technology products featured prominently on the MMNPL winners list. The Wii Fit and iPod Touch were numbers one and two, respectively, and MacBook Air and Rock Band were represented in the top 10 memorable launches.

The Most Memorable New Product Launch Survey was conducted online among 1,000 respondents aged 18 and older during September 2008. Given a list of 50 new product launches from 2008, people most commonly remembered the following:
Nintendo Wii Fit (recalled by 22% of respondents in aided recall). iPod Touch (16%). Bud Light Lime (15%). McDonald's Southern Style Chicken Biscuit & Sandwich (14%). Kraft Mac & Cheese Crackers (13%). KY Yours + Mine Couples Lubricant (12%). Gatorade G2, Yoplait Fiber One (11%, two-way tie). MacBook Air, Rock Band, Burger King Apple Fries, Neosporin Neo To Go!, Kraft Bagel-fuls (8%, five-way tie). Click herefor details.

Mintel International, with U.S. headquarters in Chicago, is a global supplier of consumer, product and media intelligence. Boston-based Schneider Associates is a full-service marketing communications agency that launches products, services, companies and communities. And Chicago-based IRI is a provider of consumer, shopper, and retail market intelligence and insights.

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