New product procurement behavior of us supermarket chains: Implications for food and agribusiness suppliers

Abstract

The introduction of new products to US supermarket chains represents a strategic area of business conduct with significant economic implications for agribusiness companies, food manufacturers and retailers, and consumers. Development of new products by manufacturers and their subsequent evaluation by retailers absorbs enormous resources in the grocery distribution system. This research examined new product buying practices in the top 200 US supermarket chains. Typical findings show the reasons that nearly 70% of all newly introduced products are rejected by buyers and never make it to store shelves and approximately one-half of newly accepted products are removed from stores within 1 year. This study demonstrates that a food or agribusiness firm must first understand the standard procedures, wants and needs, of the key “gatekeeper” buyer before focusing on the final consumer. ©1994 by John Wiley & Sons, Inc.