July 21, 2014

Branded New Products do Better than Lesser Known Names

NEW YORK — Kosher consumers do not hesitate to try new products, but are more likely to do so with familiar brands. That was the consesnsus of retailers who also argued that many new products simply duplicate products that are already on the market, a fact that seemed to disturb them. But they also agreed that new products under unfamiliar brands are far less likely to succeed than those from familiar brands. “A good new product from Lieber’s or Gefen will do better than an unknown brand, especially if it is not supported by advertising or marketing that tells consumers the benefits of the product,” said one retailer in response to Kosher Today.

Manufacturers recognize the importance of adding new SKU’s to their product mix as a way to maintain their brand’s leadership role and frankly to increase profitability. Many retailers say that they often realize better margins on new products that have little competition than older products that have stiff competition. One common complaint by retailers was the overlap of new products, which at least several used the common example of “we don’t need yet another brand of kosher mayonnaise.” Others said that manufacturers often “dump” new products without proper merchandising or advertising.