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To Launch or Not to Launch: An Empirical Estimate of New Food Product Success Rate
Abstract
New product introduction is one of the most important activities for a company’s growth. It is generally accepted that new product introductions are essential to the health of food companies. Yet, many believe that most new products fail, therefore discouraging companies to introduce some new products. However, most of the estimates suggesting high failure rates are either anecdotal or qualitative. This article provides a quantitative approach to measuring new product success rates for food products and to show the relationship between the success of new product and entry strategies. This article uses a quantitative approach to measuring product success/failure exclusively for food products. The authors contend that failure rates for food products are not nearly as low, and success rates much higher than it was previously established in the literature and perceived by the industry professionals. There was a significant variability of success rates between various food groups ranging from 58% for both fruit and vegetables and desserts and ice-cream categories to 88% for baby food. Success rates also varied among the different introductory strategies of the new food products, ranging from 50% for new packaging to 75% for re-launch strategies.Academics and practitioners usually quote very low success rates for new products based on subjective and/or strictly qualitative information. This empirical quantitative research shows that success rates for food products are much higher t…
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“The success rate for successful NPD products is also very low around 5-8% after 30 months of sales in the real market (Salnikova & Stanton, 2019).”
From Redefining boundaries in innovation and knowledge domains: Investigating the impact of generative artificial intelligence on copyright and intellectual property rights (2024) · cites this paper as Salnikova & Stanton, 2019
Citations
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Cited by
Al-Busaidi, A. S., Raman, R., Hughes, L., Albashrawi, M. A., Malik, T., Dwivedi, Y. K., Al- Alawi, T., AlRizeiqi, M., Davies, G., Fenwick, M., et al. (2024) · Journal of Innovation & Knowledge · doi:10.1016/j.jik.2024.100630 · Cited by 95
Metadata
- Authors
- Salnikova, E., Baglione, S. L., & Stanton, J. L.
- Affiliations
- MAPP program, University of Aarhus, Aarhus, Denmark
- Donald R. Tapia College of Business, Saint Leo University, Saint Leo, Florida, USA
- Department of Food Marketing, Saint Joseph’s University, Philadelphia, Pennsylvania, USA
- Venue
- Journal of Food Products Marketing
- Publisher
- Informa UK Limited
- Published
- 2019-09-02
- Volume
- 25
- Issue
- 7
- Pages
- 771-784
- ISSN
- 1045-4446
- 1540-4102
- Cited by
- 15
- References
- 2
- Language
- en
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- Salnikova, E., Baglione, S. L., & Stanton, J. L. (2019). To Launch or Not to Launch: An Empirical Estimate of New Food Product Success Rate. Journal of Food Products Marketing. https://doi.org/10.1080/10454446.2019.1661930
