CHICAGO -- Consumer packaged foods manufacturers need to spend about 15% of projected sales on year-one advertising when launching a new product, according to Valerie Skala, vice president of analytic product management at market research firm Information Resources Inc. here.
"You have to spend a lot of money if you want to be a mega-hit in the food sector," Skala said. "A confident food product should be spending at least $10 million in year-one advertising -- excluding trade promotion and coupons -- and just purely on TV/print-type advertising."
Skala spoke of new product trends during the Food Marketing Institute's annual trade show, held at McCormick Place here earlier this month.
New items are the No. 1 driver of established brands, she said, and to be a hit with consumers each product should provide the consumer with noticeable benefits, offer a point of differentiation that matters to consumers, play off a trusted brand, demonstrate break-through advertising, and meet today's consumer needs.
Center Store products to watch in 2003 based on this criteria, as well as their to-date sales, include Vanilla Coke, Pillsbury Home Baked Classics (frozen dough) and Oreo Double Delight cookies, Skala said.
Some of the most exciting beverage innovations on the horizon include alcoholic beverages for the weight-conscious, like low-carb Michelob Ultra; more flavor innovation in soda, like Sprite Tropical Remix; soy and yogurt-based drinks; and smoothies, such as V8 Splash Smoothies, Skala added.
Notable trends in the food categories as defined by IRI include the rising Hispanic population, health and longevity and eating at home, but not cooking; and convenience.
"The desire for more convenient options is nothing new. What's changing over time is how we define convenience and, there, the bar keeps going up every year," Skala said.
