Ireland new Products re Port - Nielsen...new product innovation Nielsen Online Survey Q3 2012 –...

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IRELAND NEW PRODUCTS REPORT FEBRUARY 2013

Transcript of Ireland new Products re Port - Nielsen...new product innovation Nielsen Online Survey Q3 2012 –...

Page 1: Ireland new Products re Port - Nielsen...new product innovation Nielsen Online Survey Q3 2012 – New Product Purchase Intentions Sentiment Survey – Ireland results The survey reveals

I r e l a n d n e w P r o d u c t s r e P o r tFebruary 2013

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2 Ireland new Products rePort

IrIsH consuMers More lIKelY to BuY Products FroM FaMIlIar Brands60% of Irish consumers with Internet access prefer to buy new

products from a familiar brand, according to a new study from

Nielsen, a leading global provider of information and insights into

what consumers watch and buy.

The Nielsen Global Survey of New Product Purchase Sentiment

surveyed more than 29,000 Internet respondents in 58 countries

revealing underlying consumer sentiment toward new product

innovations and shows that brand familiarity is one of several key

characteristics that resonate strongly with consumers worldwide.

In terms of new products, Nielsen’s evidence suggests about two

out of every three products are destined to fail no matter where

you operate around the globe. In fact, whether you live in Europe,

India, Africa or the United States, Nielsen research consistently

shows that while companies spend millions of euros on new product

innovation, over half of all products launched will not sustain their

year-one sales performance in year two, and the vast majority of new

products disappear from the shelf within the first three years of their

introduction.

• 67% purchase a store brand or value option when available

• 63% are willing to switch to a new brand

• 60% prefer to buy new products from familiar brands

• 58% like when manufacturers offer new product options

• 56% wait until a new innovation is proven

• 54% of consumers will engage in WOM about a new product they purchased

• ForIreland,WOM,In-Store,Freesamples,SearchingOnlineandTVAdsaretopmethodsthroughwhichconsumerssay,willinfluencenewproductpurchaseintent

IRELAND SUMMARY

INFLUENCES ON BUYING NEW PRODUCTS

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3Ireland new Products rePort copyright © 2013 the nielsen company

consuMers lIKe new Product oPtIons and VarIetYNielsen’s survey reveals that brand familiarity resonates strongly

when it comes to new products with almost two thirds of Irish online

respondents saying they prefer to buy from a familiar brand. Results

show consumers are also eager for variety; while only quarter (23%) say

they are early purchasers of new product innovation, 58% say they like it

when a manufacturer offers new product options, and 63% reveal they are

generally willing to switch to a new brand. Ireland is more enthusiastic

than Global and European counterparts on this last score (50% and 56%

respectively).

Value IMPortant as two tHIrds wIll consIder a store Brand or Value oPtIon wHen aVaIlaBleValue for money can also be a criteria when it comes to new products;

a majority (67%) of Irish respondents say they would consider value or

store-brand options when available. Economic factors evidently play a

role in purchase decisions as 47% of Irish respondents also report that

challenging economic conditions make them less likely to try a new

product, and only a quarter (28%) indicate a willingness to pay a premium

price for a new product (versus 39% Global average).

Nielsen’s survey also reveals that proof-of-concept can make a difference

in terms of purchasing decisions: over half (56%) say they will wait until

a new innovation has proven itself before making a purchase. In terms of

preferences for local and global brands, Nielsen’s survey reveals two in

five (40%) Irish respondents are partial toward local options over large

global brands.

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NEW PRODUCTS ARE A vALUABLE SOURCE OF growth AND profitability, AND INNOvATING ON A BRAND ALREADY TRUSTED BY CONSUMERS COULD BE A powerful strategy AS ThEYARE ENThUSIASTIC ABOUTADOPTING NEW PRODUCTINNOvATIONS.

IN ORDER FOR CONSUMERS TO ADOPT NEW BRANDS; STRONG AWARENESS, TRIAL-BUILDING CAMPAIGNS AND CLEAR vISIBILITY IN-STORE, SUPPORTED BY A positive product experience IS NEEDED.

54% OF IRISh RESPONDENTSARE SAYING ThEY LIkE TO TELLOThERS ABOUT A NEW PRODUCTThEY PURChASED, ThUS GENERATING POSITIvE WORD-OF-MOUTh ENDORSEMENTS WILL BEESSENTIAL TO ENhANCE ThE LIkELIhOOD OF NEW PRODUCTSUCCESS.

Karen Mooney,nielsen Media

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5Ireland new Products rePort copyright © 2013 the nielsen company

PERCENT IRELAND RESPONDENTS THAT DEFINITELY/SOMEWHAT AGREE TO THE GENERAL PURCHASE OF NEW PRODUCTS

word oF MoutH an IMPortant InFluence on new Product adoPtIonThe survey reveals that 54% of consumers like to tell others about a

new product they purchased, and word of mouth is likely positively

related to new product adoption. It is essential marketers find

innovative ways to utilise WOM communications to influence new

product awareness.

67%

63%

60%

58%

56%

54%

47%

40%

28%

23%

I will purchase a store brand orvalue option when available

I am generally willing toswitch to a new brand

I prefer to buy new productsfrom brands familiar to me

I like when manufacturerso�er new product options

I wait until a new innovation hasproven itself before purchasing

I like to tell others about newproducts I have purchased

Economic conditions and recent worldevents make me less likely to try new products

I prefer to purchase local brandsover large global brands

I am willing to pay a premium pricefor innovative new products

I am an early purchaser ofnew product innovation

Nielsen Online Survey Q3 2012 – New Product Purchase Intentions Sentiment Survey – Ireland results

The survey reveals that 54% of consumers like to tell others about a new product they purchased,

and word of mouth is likely positively related to new product adoption. It is essential marketers

find innovative ways to utilise WOM communications to influence new product awareness.

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Food & BeVeraGes sHows HIGHest PurcHase ProPensItY For new ProductsThe Nielsen New Products Intentions Online Survey included a review

of claimed new product buying patterns across 20 categories ranging

from appliances and cars to hair care products and food/beverages.

Results show constant openness to new innovations and reveal that the

categories with the most purchase interaction, (i.e., purchase activity

that exceeds two or more new products in the past six months), are the

ones that satisfy an everyday need. The top five category leaders with

regards to most purchase interaction, (i.e. more than four new products

in the last 6 months), are almost identical around the world. In Ireland,

Food/Beverages shows highest purchase propensity with 45% saying

they had bought more than 4 new products in the last 6 months,

followed by Personal Hygiene (26%), Clothing (24%), Tissues/Paper

Towels (23%) and Household Cleaning (21%).

Conversely, categories with longer purchase cycles, such as cars and

appliances, tend to report only one new item purchase in the past six

months.

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7Ireland new Products rePort copyright © 2013 the nielsen company

“Q. IN THe PaST 6 MONTHS, HOW MaNy NeW PrODuCTS (aNy ITeM yOu HaVe NOT PurCHaSeD IN THe PaST) HaVe yOu PurCHaSeD IN THe FOLLOWING CaTeGOrIeS? IreLaND

NONE 1 2 - 4 MORE THAN 4

85%

20%

9%13%3%4% 2%

63%

4%

9%8%

79%

BABYCARE

17%

18%

6%

60%

AIR FRESHENING 22%

12%4%

61%

APPLICANCES ELECTRONICS CARS/AUTO

15%14% 15%

25% 31%

17% 24%

26% 24% 23% 21%

41%46%

30%

14%

CLOTHING TISSUES/PAPER TOWELS

HOUSEHOLDCLEANING

FOOD/BEVERAGES

45%

20%

9%

26%34%

PERSONALHYGIENE

14% 19% 14% 18%

15%22% 25%21% 17%

8%

16%18% 15% 14% 13%

51%40%46%

64%

50%BOOKS DISH/DETERGENTS PETCARELAUNDRY/

FABRIC CARE ORAL CARE

17% 17%

9%16%24%

23%17%

20%15%

12% 10% 10% 9% 8%

68%55%

64%

50%47%

9%

PERSONALHEALTH/OTC

FEMININECARE

COSMETICS/PERFUME

MUSICHAIR CARE

Nielsen Online Survey Q3 2012 – New Product Purchase Intentions Sentiment Survey – Ireland results

PURCHASE OF NEW PRODUCTS BY CATEGORY LAST 6 MONTHS

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IMPortance oF a MIXed MedIa aPProacH For new ProductsDeveloping a compelling new product that fits consumers’ needs is

only part of the battle. Creating awareness and having consumers

find the product on the shelf is just as critical when it comes to new

product success. In the survey Nielsen reviewed 21 methods that

reach consumers across various media and advertising platforms.

Results reveal that a mix of word-of-mouth communication, in-store,

traditional advertising, and Internet activity are the most persuasive

ways to drive awareness.

Much More / soMewhat More liKely to buy

- Friends & Family

- Saw In-Store

- Received free Sample

- Active Internet Searching

- Professional advice

- TV Ads

- Job/Work

- Newspapers/Magazines Ads

- Radio Ads

- Brand Webpage

- Content on News/Lifestyle websites

- Outdoor Billboard/Poster Ads

- Internet Forum/Message Board

- Attending a public event

- Public Transport Ads

- Social Media Posts

- Direct Mail

- Internet Ads

- Marketing Email

- Mobile Phone Texts

- Video Sharing websites

78%

72%

69%

61%

57%

56%

49%

48%

46%

44%

42%

38%

35%

33%

32%

32%

32%

25%

22%

21%

21%

Q - WHeN yOu LearN abOuT NeW PrODuCTS THrOuGH THe MeTHODS beLOW, HOW MuCH MOre are yOu LIKeLy TO buy? (IreLaND)

Nielsen Online Survey Q3 2012 – New Product Purchase Intentions Sentiment Survey – Ireland results

78%

56%

42%

72%

49%

38%

69%

48%

35%

61%

46%

33%

32% 32% 32% 25%

22% 21% 21%

57%

44%

INFLUENCES ON BUYING NEW PRODUCTS

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Nielsen’s research shows that in-store discovery (72%) is a key driver

of new product awareness for Irish consumers. Strong visibility of

new products in-store is thus essential to ensure for both brands

and retailers. Free samples are also popular (69%).

Word-of-mouth communication spurred collectively by social

media and internet usage is growing in importance. 78% of Irish

respondents say word-of-mouth advice from family and friends are

the most persuasive source of new product information, while active

Internet searching is also popular (61%). In terms of traditional

media, television advertising (56%) and print advertising (48%)

continue to be influential marketing vehicles for driving awareness

in Ireland. Plus radio ads (46%) for Ireland trend ahead of most

countries (Global 40%, Europe 36% and UK 28%).

Consumers are increasingly finding the internet and mobile vehicles

just as compelling as other more traditional advertising. While

researching online is top, 44% of Irish respondents also indicate

they are influenced to purchase while learning about products

through a brand’s website page, one third (32%) through social

media posts, 25% through internet ads and 21% through mobile

phone texts.

While still fairly low for Ireland at 32%, Social Media certainly

presents brands with an incredible opportunity to introduce product

and campaign concepts in a way previously unavailable. Creating

strong early consumer ‘buzz’ around a new product can be key

to ensuring a product launch has a good platform from which to

develop. The interactive nature of social media itself allows brands

the perfect opportunity to react and adapt their product launch

strategy in line with fan and consumer feedback. Competitions and

rewards can be effective as early adopters and fans of a brand will

always be more likely to talk about a new product or promotional

campaign to friends and followers, increasing both awareness and

word-of-mouth for the new product. The publishing of billions

of thoughts, opinions and experiences online is fundamentally

changing the way consumers source opinions online on products,

brands and services.

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Ma Jor sources oF Product InForMatIon Include Instore, tV and onlIneTop source for Food/Beverages Personal Care and Household product

information is in-store displays or promotions, followed by TV. In

terms of TV, Nielsen’s Q3 2012 Consumer Behaviour Online Survey

showed that almost half of consumers say exposure to commercials

give them shopping ideas, while one third indicate the product image

created by the commercial will influence their decision to buy the

product. Researching Online ranks top for Home Appliances, Cars

and Personal Electronics.

46%

38%

37%

36%

26%

When I am exposed to commercials,

I often get shopping ideas

I feel comfortable about products

that have commercials

The product image created by commercials

will affect my decision to buy the product

Commercials will increase my

preference for the brand

I would buy a product because

I like its commercial

STrONGLy / SOMeWHaT aGree

influence of coMMercials

THe FOLLOWING are SOMe DeSCrIPTIONS abOuT aDVerTISING INFLueNCe ON CONSuMPTION (IreLaND)

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Food & Beverage

Cosmetic/ Skin Care

Personal Care

health Care/

Medicinehousehold home

Appliance Car Clothes/Shoes

Personal Electronics

In-Store Display / Promotion

46% 32% 33% 23% 33% 27% 11% 40% 22%

Tv 26% 24% 23% 18% 28% 23% 22% 15% 20%

Friends / Relatives 17% 16% 16% 20% 15% 14% 19% 15% 14%

Internet (using any connected device other than mobile)

16% 19% 20% 24% 22% 41% 41% 28% 46%

Product Direct Mail or Flyer

11% 5% 5% 5% 10% 7% 4% 7% 6%

Newspaper 9% 7% 6% 8% 8% 8% 11% 5% 8%

Radio 8% 4% 5% 6% 7% 7% 4% 3% 5%

Magazine 8% 17% 13% 7% 7% 8% 9% 18% 10%

Mobile Phone 2% 3% 3% 3% 3% 5% 4% 3% 8%

Other 10% 15% 13% 18% 9% 8% 16% 8% 9%

Q. WHaT are yOur MajOr SOurCeS TO ObTaIN PrODuCT reLaTeD INFOrMaTION? (IreLaND)

sources to obtain product inforMation

Nielsen Online Survey Q3 2012 – Consumer Behaviour survey – Ireland results

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Internet InFluence on PurcHase decIsIons When it comes to researching categories online, those categories that require a lot of supplemental research, rise to the top of the list in terms of influence on purchase decisions. Irish respondents say the Internet is very or somewhat important when making a new product purchase decision for electronics (72%), cars/auto (61%), books (64%), music (63%), clothing/apparel (58%), food and beverages (45%), personal health/over-the-counter medicines (47%), personal hygiene categories (41%) and hair care categories (41%).

Q - HOW IMPOrTaNT IS THe INTerNeT IN INFLueNCING yOur PurCHaSe DeCISIONS OF NeW PrODuCTS IN THe FOLLOWING CaTeGOrIeS? (IreLaND)

very iMportant/soMewhat iMportant

Nielsen Online Survey Q3 2012 – New Product Purchase Intentions Sentiment Survey – Ireland results

INTERNET INFLUENCE ON PURCHASE DECISIONS

- Electronics

- Appliances

- Cars/Auto

- Music

- Books

- Clothing/Apparel

- Food/Beverages

- Personal Health/OTC Medicines

- Personal Hygiene Products

- Baby Care products

- Cosmetics/Perfume

- Haircare products

- Oral Care Products

- Feminine Care Products

- Household Cleaning Products

- Pet Products

- Laundry/Fabric Care products

- Tissues/Paper Towels

- Air Fresheners

- Dish Detergent Products

72%

68%

61%

63%

64%

58%

45%

47%

41%

33%

41%

41%

40%

34%

35%

32%

33%

30%

27%

28%

68%

61%

58%

45%

47%

41%

41%

40%

32%

33%

30%

63% 41% 34% 27%

64% 33% 35% 28%

72%

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succeedInG wItH new Products Brands and manufacturers are continuously innovating all the time around the world and consumer demand is high. In order to create the best opportunities for a new product, uncovering un-met consumer needs, creating distinct solutions, and developing strong market-ready offers that deliver on core demand insight are essential for marketers and manufacturers alike. Furthermore as our research highlights, creating awareness through an optimal marketing communications plan and effective in-store strategy are just as critical as coming up with that winning new product idea. While no one-size fits all in terms of best marketing execution, conventional marketing vehicles such as in-store presence and TV advertising continue to be strong drivers of awareness. However saying that, consumers are increasingly looking online and to social media for information when making purchase decisions.

ThE BEST PRODUCT IDEA COULD BE DOOMED TO FAILURE UNLESS ITS INTENDED CONSUMER kNOWS IT ExISTS AND CAN FIND IT IN-STORE. ENSURING YOU kNOW ExACTLY WhAT COULD INFLUENCE YOUR TARGET CONSUMER TO PURChASE COULD BE kEY TO INCREASE ThE ODDS OF YOUR NEW PRODUCT BEING ULTIMATELY ADOPTED

KareN MOONey, NIeLSeN MeDIa

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ABOUT ThE NIELSEN GLOBAL SURvEY

The Nielsen Global Survey of New Product Purchase Sentiment was

conducted between August 10 and September 7, 2012 and polled

more than 29,000 online consumers in 58 countries throughout

Asia-Pacific, Europe, Latin America, the Middle East, Africa and

North America. The sample has quotas based on age and sex for

each country based on their Internet users, and is weighted to be

representative of Internet consumers and has a maximum margin

of error of ±0.6%. This Nielsen survey is based on the behavior of

respondents with online access only. Internet penetration rates vary

by country. Nielsen uses a minimum reporting standard of 60 percent

Internet penetration or 10M online population for survey inclusion.

The Nielsen Global Survey, which includes the Global Consumer

Confidence Index, was established in 2005.

ABOUT NIELSEN

Nielsen Holdings N.V. (NYSE: NLSN) is a global information and

measurement company with leading market positions in marketing

and consumer information, television and other media measurement,

online intelligence, mobile measurement, trade shows and related

properties. Nielsen has a presence in approximately 100 countries,

with headquarters in New York, USA and Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © 2013 The Nielsen Company. All rights reserved. Nielsen

and the Nielsen logo are trademarks or registered trademarks of

CZT/ACN Trademarks, L.L.C. Other product and service names are

trademarks or registered trademarks of their respective companies.

13/6064

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