Breakthrough Innovation Report – Europe
Creating game-changing innovation is very challenging. Delivering to the marketplace a careful balance of powerful consumer insight and strategically aligned messages has never been more difficult. More intense competition, media fragmentation, evolving channels and tightening budgets, all in a Western European context of zero growth are just some of the hurdles that brands need to overcome on the road to launching a breakthrough product.
This report is the culmination of an in-depth review of approximately 12,000 new product initiatives that launched in Western Europe between 2011 and 2013. Among that vast pool, only seven met Nielsen’s requirements for distinctiveness, relevance and endurance to earn the title of being a Breakthrough Innovation. We identified another three innovations that have the potential to become breakthroughs in time, and are already showing all the signs of being winners.
THE MAKING OF WINNERS: NIELSEN BREAKTHROUGH INNOVATION CRITERIA
- Distinctiveness: Deliver a new value proposition. Ingredient reformulations, repackagings, size changes, repositionings and other minor refinements to existing brands were excluded.
- Relevance: Generate at least £/€10 million in year one sales.
- Endurance: Achieve at least 85% of year-one sales in year two. This measure confirms a sustained level of demand while allowing for some drop in revenue during the transition from trial to adoption.