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New decade a minefield for brands

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New decade a minefield for brands

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Asia-Pacific consumer brands will succeed in the recovering economic markets but only if lessons are learnt from the GFC years, according to new research released by business analysis company Datamonitor.

The study has revealed the difficulties brands face in capturing the attention of consumers, with 67% of Australians saying they simply don’t even notice new alcoholic drinks on the shelves.

Figures showed that manufacturers bombarded the FMCG market with over 1,600 product innovations launched globally between 2007 and 2009, creating an environment where it is easy for new products to become lost.

However, the report indicated that one of the key drivers of product innovation success has been consumer demand for ‘value driven’ branding.

This has contributed to the success of ethical brands such as Australian carbon neutral beer brand Barefoot Radler, owned by Lion Nathan, and environmentally friendly US-based Clorox Green Works.

Vicky McCrorie, consumer analyst at Datamonitor and author of the study, gave Barefoot Radler as an example of a brand that achieved success by reaching out to non-beer drinkers with a unique brand positioning.

“Customers approved of its sustainable business practices which gave it competitive advantage,” said McCrorie.

Even if a brand manages to cut through, the report indicated that failing to maintain innovation can lead to a loss of market share, citing O-Box (one of the first juice drinks launched in China) a key example of this – a number of competitors quickly jumped on the bandwagon and O-Box has not been able to defend its position.

“The success of new product launches is not formulaic. Brands need to combine innovation along with an understanding of how to truly capture consumers imagination and deliver what they want,” McCrorie concluded.

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