New Product Introduction for Private Label Products Compared to Branded by Product Category

Abstract

This research reveals the success rate of new private label products by food category. It also compares the PL results to branded new product. Private label products have a much higher success rate than it has been traditionally estimated in the literature. However, it is slightly lower than that of branded. The data is based on the Global New Product database from Mintel. New product success is defined as if a product is still on sale 2 years after introduction. 28,160 food items were downloaded, and from that list, a sample of the new product introductions from 2010 to 2012 for various food groups was drawn. We randomly selected 10% from each of the food categories using Excel’s random number generator, making it 2816 new products which were sampled from 17 food categories. Overall 43% of new Private Label products were successful, far greater than the 15–20% for all new products. It was however lower than the success rate for branded at 71%, much higher than previous estimates.