Fully 75% of all new products fail on the market, and pet food products are not immune to this fact, said John Stanley during Petfood Forum China 2015.
New products have a high rate of failure, said retail expert John Stanley, and pet food products are not immune. In fact, 75% of all new products fail on the market. (See www.petfoodindustry.com/articles/5147.)
Stanley, president of John Stanley Associates, based in Australia, shared reasons for such high failure, speaking during Petfood Forum China 2015, held August 28 in Shanghai. An essential reason is that manufacturers and suppliers don’t understand retail, Stanley explained, and they assume that retailers understand retail, which isn’t always the case. In addition, consumers tend to stick to their own purchasing habits: 85% of what we buy are the same brands every week.
Pet food companies have to convince consumers to change. “Do not rely on the retailer to do it,” Stanley warned. He offered five specific reasons for new product failure: 1. The product falls short of the marketing claims. “You over-promised and under-delivered,” Stanley said. 2. The product was not marketed properly. This is because of the assumption that retailers always understanding retailing, according to Stanley. 3. The product fits into a completely new category, and consumer education on that category is necessary. 4. The company cannot support the growth of adding a new product. 5. It’s a revolutionary product with no market.
Petfood Forum China 2015 focused on new product development for pet food. It was co-located with Pet Fair Asia 2015. For more information, visit www.petfoodforumevents.com.