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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
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
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.
4 Ireland new Products rePort
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
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.
6 Ireland new Products rePort
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.
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
8 Ireland new Products rePort
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
9Ireland new Products rePort copyright © 2013 the nielsen company
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.
10 Ireland new Products rePort
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)
11Ireland new Products rePort copyright © 2013 the nielsen company
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
12 Ireland new Products rePort
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%
13Ireland new Products rePort copyright © 2013 the nielsen company
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
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.
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