SPARKS OF GREATNESS Retailers can boost profits by keeping shelves stocked with the most innovative new products along with old favorites.

BY REBEKAH MARCARELLI

38 October 2017 www.groceryheadquarters.com retailer’s job of stocking shelves with provides manufacturers with important insight into the minds new products can be tough. Grocers of American consumers and their purchasing patterns, helping must ask themselves whether a product them deliver the meaningful innovation and value that can be a will be a hit with their customer base great advantage to retailers. Retailers themselves have also made and if it will exist for more than a few an appearance on the list, with private label heavy-hitter Aldi months. They also must ensure that they snagging eight mentions on the Best New Products list. are offering shoppers enough new, eye- Insights from BrandSpark show that 74 percent of shoppers catching items to keep them engaged like trying new products and 63 percent say they will pay a little and eager to explore the center store. This is where Toronto- more for a new product that appears to be better than what was Abased BrandSpark International’s Best New Products and Most previously available. According to BrandSpark, product inno- Trusted Brands awards programs can come in handy. vation is as important as ever to capture shoppers’ attention, Based on an independent survey of more than 10,000 shop- as 45 percent say they are less brand loyal than they were a few pers, BrandSpark’s leaderboard contenders are 100 percent con- years previously. sumer-voted in an effort to recognize the most innovative and Deals continue to be a major driver among consumers, with promising new products on the market, as well as the brands 48 percent reporting they use coupons from coupon circu- that are most trusted among Americans. lars “most weeks,” and 31 percent now using a coupon-app on For nearly a decade, the Best New Product Awards and the their smartphone (up 5 percent versus 2016), often in addition companion American Shopper Study have helped consum- to print coupons. The research also indicates word-of-mouth ers find their voice in the market, and retailers can profit from recommendations still have a significant impact on the market, listening. Robert Levy, president and CEO of BrandSpark with 68 percent of shoppers trusting consumer-voted awards. International and founder of the Best New Product Awards, says Further, 58 percent of shoppers say products named to the list the program helps consumers seek out and purchase the top of the BNPAs positively influences their opinion of a product. rated new products that can be trusted to be effective and deliver Without further ado, GHQ is proud to present BrandSpark’s good value for the money. While the American Shopper Study Best New Products of 2017:

www.groceryheadquarters.com October 2017 39 BEST NEW PRODUCTS OF 2017

BEAUTY & PERSONAL CARE ¶Savory Snacks: ALDI SimplyNature Organic White ¶Conditioner: Expert Cheddar Puffs Intense Hydration Conditioner ¶Soup: Idahoan Premium ¶Facial Mask: L’Oréal Paris Pure Steakhouse Potato Soups Clay Mask ¶Specialty Pasta: ALDI liveGfree ¶Lip Color: Burt’s Bees Lipstick Organic Gluten Free Brown ¶Shampoo: Pantene Expert Rice Quinoa Pasta Intense Hydration Shampoo ¶Specialty Vodka: Smirnoff ¶Men’s Body Wash: Sourced Hardest Working Collection ¶Vegetarian Food: Yves Veggie Body Wash Dirt Destroyer Cuisine Appetizers – Falafel Steel Courage Balls and Kale & Quinoa Bites ¶Men’s Deodorant/ Antiperspirant: Old Spice HOUSEHOLD Hardest Working Collection Invisible Solid Odor Blocker ¶Dish Soap: Palmolive Ultra Lasting Legend Fusion Clean ¶Mascara/Primer: L’Oréal Paris ¶Fabric Care: Snuggle PLUS Voluminous Primer SuperFresh – Fabric Softener ¶Women’s Deodorant/ ¶In-Wash Scent Booster or Antiperspirant: Fresh Laundry Scent Booster: Antiperspirant and Deodorant Fresh Protect with Invisible Solid, Cool Waterlily Odor Defense – April Fresh FOOD & BEVERAGE ¶Liquid Laundry Detergent: Purex plus Clorox2 Stain ¶Bread: ALDI Specially Selected Fighting Enzymes Liquid Brioche Buns Laundry Detergent ¶Coconut Water: ALDI Nature’s ¶Single Dose Laundry Nectar Coconut Water Detergent: PODS Plus ¶Cooking Oil/Spray: Thrive Febreze Odor Defense Culinary Algae Oil ¶Eggs: ALDI SimplyNature KIDS Organic Cage Free Brown Eggs ¶Baby Food: ALDI Little Journey ¶Flavored Sparkling Water: Baby Purees La Croix Sparkling Water ¶Baby Wash/Shampoo: Tangerine Johnson’s Head-to-Toe Extra ¶Frozen Treat: Breyers Moisturizing Baby Wash Chocolate Hazelnut Gelato ¶Baby Wipes: Johnson’s Head- Indulgences to-Toe Baby Cleansing Cloths ¶Mexican Sauce/Seasoning: ¶Diapers/Training Pants: Ortega Skillet Sauces Easy Ups ¶Rice: ALDI SimplyNature ¶Kids Snacks: ALDI Little Organic Rice Journey Yogurt Bites

www.groceryheadquarters.com October 2017 41 TRIED AND TRUSTED HOUSEHOLD & PETS PRODUCTS 2017 WINNING BRANDS While a retailer’s ability to keep influx of exciting new products is important, today’s shoppers also expect to find their tried and true brands on grocery shelves. ¶Air Freshener: Glade For the fourth consecutive year, American shoppers stepped up and determined the ¶Battery: Duracell Most Trusted Brand winners in the following categories: Food & Beverage; Health & ¶Cat Food: Purina Beauty; Household & Pets; and Kids & Babies. ¶Cat Litter: Purina According to BrandSpark, Americans increasingly trust brands they perceive as ¶Dish Soap: more values-based or fair and ethical. These values can include accessible prices and ¶Dishwasher Detergent: honest support of social causes. Levy urges one of the most valuable instances of cause- Cascade marketing occurs when a brand takes a position that entails some risk, which like- ¶Dog Food: Purina minded consumers tend to view as a mark of authenticity. ¶Dog Treats: Milk Bone Another important way for brands to gain trust is to respond to problems that may ¶Eco-Friendly Cleaning arise quickly and transparently. Seventy-percent of shoppers say brands that “respond Products: Seventh Generation quickly to serious product issues” greatly increase their trust, more than any other ¶Fabric Softener: Downy brand action. Levy affirms that while major product issues can be downfalls, Americans ¶Flea & Tick Control: Frontline are often willing to give brands a second chance if the company address the problem ¶Floor Cleaner: Mr. Clean / responsibly and reminds shoppers of the trust they have gained with them over the years. Pine-Sol (tie) Here are the winners that have gained a rapport with American shoppers and come ¶Household Cleaning: Clorox / out on top in BrandSpark’s Most Trusted Product research: Lysol (tie) ¶Laundry Detergent: Tide ¶Laundry Stain Remover: HEALTH & BEAUTY PRODUCTS ¶Hair Color: L’ O r é a l ¶Topical Pain Relief: Icy Hot Shout 2017 WINNING BRANDS ¶Hair Removal: Nair ¶Weight Loss Program: Weight ¶Paper Towels: ¶Hand Soap: Dial Watchers ¶Adult Incontinence: Poise ¶Headache Pain Relief: Tylenol ¶Women’s Deodorant/ KIDS & BABIES PRODUCTS ¶Adult Sunscreen: ¶Lip Balm: Chapstick Antiperspirant: Secret 2017 WINNING BRAND Coppertone ¶Lip Color: Revlon ¶Women’s Hair Styling: Pantene ¶Adult Tooth Pain Relief: ¶Mascara: Maybelline / TRESemmé (tie) ¶Baby Food: Gerber Orajel ¶Men’s Body Wash: Dove ¶Women’s Shaving: ¶Baby Formula: Enfamil ¶Adult Vitamin: Centrum ¶Men’s Deodorant/ ¶Baby Wash/Shampoo: ¶Allergy Relief: Benadryl Antiperspirant: Old Spice FOOD & BEVERAGE PRODUCTS Johnson & Johnson ¶Antacid: Tums ¶Men’s Hair Styling: Axe 2017 WINNING BRANDS ¶Baby Wipes: Huggies ¶Arthritis Pain Relief: Tylenol ¶Men’s Shaving: Gillette ¶Children’s Allergy Medication: ¶Body Moisturizer: Aveeno ¶Mouthwash: Listerine ¶Beer: Budweiser Benadryl / Claritin (tie) ¶Body Wash: Dove ¶Sensitive Toothpaste: ¶Butter: Land O’ Lakes ¶Children’s Sunscreen: ¶Condom: Trojan Sensodyne ¶Candy: Hershey’s Coppertone ¶Contact Lens Solution: ¶Shampoo & Conditioner ¶Chocolate: Hershey’s ¶Children’s Toothpaste: Bausch & Lomb (Men): Head & Shoulders ¶Coffee: Folgers ¶Children’s Toy: Fisher Price ¶Cough & Cold Remedy: ¶Shampoo & Conditioner ¶Eggs: Eggland’s Best ¶Children’s Vitamin: Flintstones (Women): Pantene ¶Energy Drink: Red Bull ¶Diapers: Pampers ¶Facial Cleanser: ¶Smoke Cessation: Nicorette ¶Ice Cream: Breyers ¶Infant/Children’s Pain & Fever ¶Feminine Sanitary Products: ¶Teeth Whitening: Crest ¶Pasta: Barilla Medication: Tylenol ¶Toothbrush: Colgate ¶Vodka: Smirnoff ¶Infant/Children’s Tooth Pain ¶Foundation: CoverGirl ¶Toothpaste: Crest ¶Yogurt: Yoplait Relief: Orajel

42 October 2017 www.groceryheadquarters.com THE KEY TO NEW PRODUCTS SUCCESS? CONSUMERS MUST WANT TO BUY IT AGAIN To gain a deeper understanding of what today’s shoppers are looking for and how retailers can capitalize on the Best New Products and Most Trusted Brands, GHQ spoke with BrandSpark International President/ CEO Robert Levy.

Grocery Headquarters: What’s the significance of your program? What motivated BrandSpark to launch the Best New Products awards and what does it mean for the winners? Robert Levy: Through our experience assisting brands with new products develop- ment, we were aware of how difficult it is even for great new products to stand out in store: meaningful and noticeable incremental ben- and convenience are the primary categories even a year after a national launch only one in efit compared to other options available to the for product innovation that resonates with three category shoppers are aware of the aver- consumer; must be communicated such that American shoppers. age new product. the consumer benefit is properly understood; Meanwhile, consumers would tell us that and be delivered at a fair price. A successful GHQ: Beyond the obvious trends it’s hard to keep up with all the new products new product needs to truly deliver the unique such as better-for-you, what do you on store shelves, even as eight in 10 agree that experience that it promises and be perceived anticipate will be important factors for they like trying them. With these issues in as great value. Consumers must want to buy the next generation of new products? mind, we conceived of the Best New Product the product again. That is why the Best New Levy: American shoppers appreciate eco- Awards as a way to help marketers ensure Product Awards focuses on the products that friendly and sustainable products, though their brand’s best new products standout, and real purchasers are most likely to plan to buy most do not want to pay more. These benefits to guide consumers toward innovations that again with their own money. create positive brand associations and prepare are truly worth spending their money on. More specifically, we can look to our brands for the continuing shift to healthier BrandSpark launched the Best New Product Critical Shopper Factors wheel (see Page ingredients. In household care, consumers are Awards 15 years ago in Canada and 10 years 46), which was informed by the success- increasingly looking to avoid harsh ingredi- ago in the United States. ful innovations we’ve tracked in the Best ents and continue to prioritize convenient for- New Product Awards: the foundation of any mats and extreme efficacy. In personal care GHQ: Given the high rate of product product purchase is value perception and and beauty, consumers want products to be failures, what in your opinion has the brand trust, against which the specific ben- effective but gentle on skin. Natural products makings of built-to-last new product. efits are weighed: superior performance, and new ‘natural’ ingredients are resonating Levy: An innovation must provide a enjoyment factors like taste, health benefits for beauty products.

www.groceryheadquarters.com October 2017 45 In food and beverage, Americans want GHQ: Given that new products are the consumers and innovate to keep up with their products that are more natural but offer rich lifeblood of food retailing, do you feel needs. As shoppers migrate to the low-cost taste, and innovations that offer convenience that they will continue to retain their discount channels for basic products, and without sacrificing quality do well. Food clout in grocery and will it spill into start to sign up to subscribe and save models horizons are also getting broader as more and e-commerce? for household staples or make voice-assis- more Americans are welcoming new flavors. Levy: The breadth of products that can be tant aided re-orders via devices like Amazon Shoppers are increasingly looking for food found online, including many not even avail- Alexa and Google Home, innovation will products that are free of preservatives, free of able on store shelves, should serve to acceler- remain important to stand out and disrupt artificial sweeteners, GMO-free and antibi- ate innovation even more. The ability of small shoppers default buying habits. otic free. On the side of positive ingredients, and medium sized brands to innovate and Americans are valuing protein content more reach a market online will pressure the major GHQ: What are the most telling than ever. producers to continue to listen to American characteristics of retailers that

46 October 2017 www.groceryheadquarters.com demonstrate superiority with new products? Levy: Those retailers with a large selection of strong brands are the ones that are most rec- ognized for new products. They make space at shelf and are willing to work with brands to offer them opportunities to promote their new products in-store. On the other side are retailers that rely heavily on private label, and we’ve seen these stores as well put an empha- sis on new products and innovation. An example is Aldi, which is promoting innova- tion within its store brand offering as another lever to drive overall value as a retailer. multiple products, and products regularly as well as their favorite occasional ‘impulse’ GHQ: In this era of SKU/category offered at what the consumer views as a fair buys. Strong promotions on consumers’ rationalization, what does a new price. Innovation to keep up with emerg- favorite brands will drive trips for retailers, product need to stand out? ing consumer trends, especially in health, and these promotions can increase shoppers’ Levy: Brands need to convince the retailer builds loyalty for food brands. The great- satisfaction with their trip. Shoppers continue that there is a real consumer demand for the est moments of truth for these brands is how to read the print circulars most weeks to spot product. Innovation should continue to start they respond when quality issues do arise: these high value promotions on a leading at consumer needs. A thorough process of responding directly to consumer issues, being brand. Retailers can also help by pointing out consumer research and product refinement, transparent and taking responsibility allow the new products that meet specific consumer helps ensure that the right concepts are devel- brands to bounce back from problems faster. needs. This can reinforce the retailer as place oped and go-to-market products are posi- The most common way to lose trust is to react for new products and the best innovation, as tioned to succeed. The consumer validation too slowly to remove or replace ingredients well as help highlight seasonal or other special is also key to making the case to retailers that that have made their way on a majority of initiatives and drive incremental purchases. the product belongs on shelf. American ‘watch-out’ lists. A strong launch strategy is also necessary Emotional factors can also be important, GHQ: If consumers had the choice to show success quickly. Strategies including especially family history using the brand – between an award-winning product/ heavy price promotion, prominent placement Olay is a particular example that resonates product with strong brand loyalty or a in-store and support from consumer endorse- across generations. More practically, regular product which a much cheaper price, ments are among those that will drive con- use is also important to developing trust and which item would they be more likely to sumer trial. As shoppers turn to e-commerce the habit of purchase that combine into real reach for? to research and purchase in addition to brick brand loyalty. A competitive price, promo- Levy: While it depends on the category, over- and mortar, brands also need to monitor pres- tions, and encouraging stocking-up are all all just 15 percent of American shoppers say ence online and ensure that their products ways to ensure a greater share of fridge or they look for the absolute lowest price. The are properly supported on each retailer’s’ web- pantry space from the consumer and a way rest want a good price on a great product. In site with ratings and reviews, and look to the them to grab a greater share of mind. the Best New Product Awards, we’ve seen that products with the strongest consumer feed- brand loyalty is the No. 1 driver of real in- back as candidates for promotion. GHQ: How can retailers boost brand market new product trial. Consumer endorse- loyalty or capitalize on brands that ment also resonates and can even trump GHQ: During your time in consumer already have a strong following? brand loyalty: one in two online shoppers told research, what have you learned about Levy: Foremost, the average American shop- us that they would switch from their regular factors that drive brand loyalty? per wants great prices and convenient shop- brand if another product has better reviews, Levy: Brand loyalty is driven by a consis- ping, that means a store they can visit without and eight in 10 American shoppers said they tent strong product experience, often across hassle to get the majority of items on their last have trust in consumer-voted awards.

48 October 2017 www.groceryheadquarters.com