New Product Pacesetters 2006

The power of Procter & Gamble's new product pipeline is evident once again in this year's New Products Pacesetters report from Information Resources Inc. (IRI). P&G claimed half of the top spots on both the 2005-2006 Pacesetters list and the 2006-2007 list of projected "Pacesetters-to-Be" list for non-food brands.That's not to say P&G's success came easily. Diaper rival Kimberly-Clark landed two Huggies SKUs in the 2006-2007 Pacesetters-to-Be list, as Huggies Supreme Natural Fit diapers took the top spot with projected first-year sales of $151 million. And P&G faced an especially tough crop of competitors in hair care, with its restaged Herbal Essences line going up against L'Oreal's Vive Pro, Alberto-Culver's Nexxus and Unilever's Sunsilk lines. All enjoyed extensive display support in stores.The top food and beverage Pacesetters lists were a bit more equitably distributed. Kraft's South Beach Diet was number one in the 2005-2006 list, but the company made way for Campbell's Reduced Sodium Soup line and other competitors from ConAgra, General Mills and Sara Lee on the 2006-2007 Pacesetters-to-Be list.The following summary is based on a presentation by Valerie Skala Walker, IRI's vice president of analytic product management, at the company's Reinventing CPG Summit in February.The 2005-2006 New Product Pacesetters list includes 125 food and 138 non-food brands introduced between February 2005 and January 2006. To qualify, a brand must have tallied at least $7.5 million in first-year retail sales in food, drug and mass outlets excluding Wal-Mart (FDMx).The 2006-2007 Pacesetters-to-Be list includes 94 food and 74 non-food brands introduced between February of 2006 and December 2006. Sales figures are IRI's projection of each brand's eventual full-year sales with no adjustment for distribution levels. These are the brands most likely to end up on IRI's Pacesetters list the following year.IRI estimates that 6% of households tried at least one of the top 10 non-food 2005-2006 Pacesetters, with 36% of those households following up with a repeat purchase. Trial for the top 10 2005-2006 food and beverage Pacesetters was higher, with 13% trying at least one product and 46% following up with a repeat purchase.IRI estimates that the average media ad expenditure of the food and beverage Pacesetters was $28 million, or about 18% of each brand's year-one retail sales. For non-food Pacesetters, median ad spending was nearly $38 million, or 27% of year-one sales. The estimates are based on adjustments that account for sales outside the FDMx outlets IRI tracks and for the typical discount off book rate that major advertisers receive. IRI has discerned no clear trend in Pacesetter ad spending over the past few years.Display and promotional support for products on the Pacesetters lists is typically very strong. New product introductions often receive secondary display space from retailers, and several of the manufacturers on the lists boast top-tier direct-store delivery networks. (See the attached image galleries for the 2006-2007 Pacesetters-to-Be and the 2005-2006 Pacesetters for an overview of display and promotional support.)New Product PacesettersNote: The hyperlinks in the following section will open up galleries of related images. See the "Related Articles" links at the bottom of this article for more information about specific product launches.Non-Food PacesettersFour brands on the 2006-2007 non-food Pacesetters-to-Be list (see chart) are hair care products: Procter & Gamble's restaged Herbal Essences line, L'Oreal's Vive Pro, Alberto Culver's Nexxus line and Unilever's Sunsilk. These brands fill demand for customized products with a range of solutions to various hair care problems.In home care, new fragrances promise to transform home care tasks into a more enjoyable experience. Gain Joyful Expressions delivers unique new scents, while Tide Simple Pleasures offers a "relaxing, refreshing or romantic" scent experience. Febreze Noticeables air fresheners offer two complementary scents in one unit.The two new Huggies diapers on the list target babies of different ages. Crest's Pro-Health toothpaste claims to enhance performance with ingredients addressing a host of dental issues.Several of the 2005-2006 top 10 non-food Pacesetters (see chart) claimed enhanced performance: Gillette Fusion, Gillette Venus Vibrance, Zantac 150 and Huggies Pull-Ups with wetness liners to ease potty training. Tide with Febreze combined the equity of two mega-brands in one. Scott Extra Soft filled growing demand for premium products, even in categories thought to be highly commoditized.Tide Coldwater and All Small & Mighty tapped demand for more environmentally friendly products. Jergens Natural Glow broke new ground by offering a moisturizer that gradually tints skin to make it appear tanned.Food & Beverage PacesettersThe projected 2006-2007 food and beverage Pacesetters-to-Be offer a range of benefits, with healthy, natural ingredients and freshness as emerging themes (see chart). Campbell's Reduced Sodium soups, Heineken Premium Light and Quaker Chewy 90 Calorie Bars offer healthier/reduced-calorie versions of well-established brands. Diet Pepsi Jazz, Stouffer's Lean Cuisine brick oven pizzas, and Fruity Cheerios deliver unique new tastes with reduced calories.Sara Lee's 100% natural Hearty & Delicious breads and Simply Lemonade and Simply Limeade appeal to the growing demand for fresh and natural products. Bird's Eye Steamfresh vegetables package health benefits in convenient microwave packaging. Coca-Cola's carbonated Vault energy drink demonstrates that the category still can drive growth.The 2005-2006 top 10 food and beverage Pacesetters (see chart) show a shifting focus from pure weight management to total health and wellness. The Kraft South Beach Diet line offers weight management benefits, but there is a heavy focus on nutrition, including whole grains and "good fats" in brand marketing.Dreyer's Edy's Slow Churned Ice Cream, Coke Zero, Sara Lee Soft & Smooth bread and Stouffer's Lean Cuisine Paninis all offer consumers healthier options that don't sacrifice familiar tastes. Dannon's Activia, with active flora to stimulate stomach health, suggests consumers are ready for functional foods offering health benefits beyond basic nutrition.Other Recent Launch ActivityThe following new product launches also received strong retail support, according to Institute store checks and P-O-P Times magazine. Products with one asterisk (*) are on IRI's projected Pacesetters-to-Be list for 2006-2007. Products with two asterisks (**) were 2005-2006 Pacesetters. While these products did not make the top 10 lists, they are included in the full Pacesetters report available from IRI. Alberto-Culver rolled out floorstands for TRESemme Color Thrive* in April 2006. Cadbury Adams USA launched Stride gum* in April 2006 with a $50 million marketing campaign for the product's first year. Coca-Cola supported the February 2006 launch of Tab Energy* with an eight-piece P-O-P program of 50,000 displays and followed with floorstands and countertop displays for Coca-Cola Blak's* April 2006 launch. ConAgra introduced a bevy of new Slim Jim products in November 2006 with shippers, countertop displays and dump bins designed for convenience stores. Diamond Foods introduced three Emerald brand trail mixes in May 2006. Elizabeth Arden rolled out its So...? fragrance line in January 2006 and Prevage anti-aging treatment in November 2005. Johnson & Johnson/Pfizer introduced Listerine Agent Cool Blue in August 2006 with extensive display support. Kimberly-Clark introduced Cottonelle for Kids* in February 2006 and Cleanteam Wipes* in January 2006. Kraft rolled out floor displays to support its launch of Athenos Pita Chips in April 2006. L'Oreal's recent launches include Maybelline Moisture Extreme**, AcneResponse, Sublime Glow**, Age Perfect Pro-Calcium and Garnier Nutritioniste. The Mentholatum Co. rolled out OXY Chill Factor skincare pads for boys in February 2006. Neutrogena supported the launch of Energizing Body products with countertop displays distributed to drugstores in January 2006. Procter & Gamble extended the Whitestrips brand with Crest Whitestrips Renewal in January 2006. Playtex Products launched the Playtex Sport* tampon line in August 2006. Revlon launched Vital Radiance* in early 2006 and supported its Star Style line with multiple displays for Wal-Mart and other retailers. Note: In spite of investing heavily to introduce Vital Radiance, Revlon discontinued the brand in September 2006 on grounds that the product, which was aimed at women aged 50 and older, didn't hold an "economically feasible retail platform" for future growth, the company said. Walgreens introduced its own Skin Essentials anti-wrinkle serum in December 2006.

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