With 80% of new products failing and with most of the breakthroughs actually being line extensions, we have to admit the CPG approach to innovation is broken. here is how to fix it
Concept testing and choice experiments throw the insight that consumers are creatures of habit out the window. We force people to tell us if they are interested in a particular new product idea without studying how to disrupt existing consumer habits and rituals.
Marketers want to use brand extension strategies as much as possible today because it is a more affordable way to introduce products but the key is having enough rocket fuel, i.e. brand equity, to get the rocket (i.e. brand extension) off the ground.