NPD Still Strong Despite Struggling UK Economy

Bradford, West Yorkshire, United Kingdom, November 23, 2008 --(PR.com)-- The struggling UK economy and the much talked about credit crunch has had little impact on new product development (NPD) activity, a survey carried out by Sun Brand Technologies has found. In spite of the gloomy financial forecast, 50% of brand managers are planning to launch the same number, if not more products as in 2007 in a bid to keep consumers spending, putting paid to reports of marketing industry misery this year.

Gone are the days of relaxation during a recession, 85 per cent of those questioned felt there was constant pressure to introduce new brands with retailers and consumers each driving demand in equal measures. However this isn’t surprising with competition for shelf space riding at an all time high.

Products now have significantly less time to prove their popularity than ever before, so innovation is crucial. 42% of those questioned believed the on-shelf trial period has shortened considerably in the past five years with the majority of products having just a few months to succeed.

Regardless of this, more than half of respondents believed the high level of NPD was justified. And, if past trends are anything to go by, this pressure is only likely to increase over the next five years. As the retail powerhouse goes into overdrive, businesses will be challenged on a range of product issues from cost to speed-to-market to the environment and consumer demand – and only those with the resources to address these requirements are likely to succeed.

80 per cent of respondents believe cost will be the most important issue affecting NPD over the next five years. Consumer demand was rated highly, with over two thirds of brand managers considering the public a force to be reckoned with in the future of NPD.

###