Today’s FMCGeNews leads with articles which show that consumers are tightening their belts and turning to traditional staples for good, honest and nutritious food. Given this, with most NPD taking 1-2 years to get to market, what focus should your current NPD programme be taking?

With sales of Baked Beans rising by 22%, and other traditional staples such as tinned Soup on the rise, the impact of recession on the UK consumer is similar to that of the 1970’s, 1980’s and the early 1990’s, with consumers eating in-home more often, and trimming their budgets through considered shopping.

The temptation in NPD is to think short-term, focusing on extracting value from current products, and reducing the amount of time spent in the development of new ideas. However, what are the lessons of previous recessions and what should NPD programmes be focused on today?

Launch Date

From research to launch, many products take over 12 months to get to market. At the start of any NPD programme, a realistic launch date needs to be considered, along with a projection of the economy landscape, and how the market will evaluate new products. It could be the case that in 18 months to 2 years, with the economy starting to grow again, that the trends of the last five years will be back in growth. Focusing on today’s needs can therefore be a costly mistake.

Going Green

The ‘green’ agenda has been high in much NPD for the past 3-4 years. Many different ideas have capitalised on offering consumers a more ethical choice, and have carved a sizable niche in the market. This trend is receding a little with consumers less able to afford to consider ‘green’ products. Having gathered so much strength and appreciation by consumers, this trend is unlikely to be held back for long, and coming out of recession, the environment is likely to be high. NPD needs to continue to examine how the ‘green’ agenda can be capitalised on.

Convenience

A major trend over the past 40 years since the launch of the M&S Ready Meal in the 1970’s, this trend will always motivate consumers. However, paying for extra convenience can hold back some NPD, particularly in tighter times.

With consumers continuously looking for added convenience, this trend will re-emerge to be a strong driver of growth.

Variety

Variety is critical to consumers. It drives penetration and repeat, and builds loyalty to products. In times of recession, providing variety is even more critical to consumers. Consider your ranges and whether more interesting and differentiated flavours could be introduced to build further loyalty to your brand.

Overall

Today’s NPD should take a balanced view, providing consumers with options for today’s economic climate, but with developments in place to deliver new and exciting products for the next 2-3 years.

It is right that where opportunities are available to reduce costs and provide a better value product offer to consumers, these should be taken. But, longer term, the growth trends of the past few years will return to be a major influence in how consumers shop, and what they decide to buy.

Chris Sinclair, Managing Director, The Oxford Research Agency –