MANILA, PHILIPPINES, 23 JUNE 2015 – Filipinos are among consumers worldwide who are showing strong affinity for brands which are investing in new product development and are among the most likely to try new product offerings, according the a new report released today by global performance management company, Nielsen.
The Nielsen Global New Product Innovation Survey polled 30,000 online respondents in 60 countries to understand consumer attitudes and sentiments about the drivers behind new product purchase intent.
Close to 7 in 10 Filipino consumers (68%) say they purchased a new product during their last grocery-shopping trip – 11 percentage points higher than the global average of 57%. A further 78% of Filipino consumers reveal that they prefer to buy new products from familiar brands while 77% like it when manufacturers offer new product options (compared to 62% globally).
“A brand name provides an assurance of quality and lends credibility to its effectiveness. Line extensions create confidence in a new product’s ability to deliver against promises,” shares Stuart Jamieson, managing director of Nielsen in the Philippines. “However, for new products that are launched without the advantage of a strong brand name, extra care is needed to provide a strong promise which underscores that the product provides good value for money.”
When it comes to obtaining information on new products, television advertising plays a key role with 21% of Filipino consumers ranking television as their number one source of new product inform. Recommendations from family and friends rank second with 14%. The internet wields its influence on new product trials, with 10% ranking social media posting, 9% active internet searching, 6% internet ads (tied with recommendations from a professional or expert), and 4% internet forum/message board as key influencers. (See Chart 1).
“As we see the changes in the media landscape, the sources of information of consumers likewise evolve. We are now seeing a rising reliance on earned media such as social media postings, active internet searching and internet forum alongside with recommendations coming from family and friends, and experts.
The Nielsen report revealed affordability as the key driver of new product purchase for Filipino consumers, followed by convenience and personal recommendation. (See Chart 2).
“Getting the price right and providing convenience to consumers who are now mostly time-strapped reverberate well. Savvy marketers who are able to inject these in their product development can count on the satisfied Filipino consumers to be their ambassadors among their family and friends offline or online,” emphasizes Jamieson.
When asked for their wish list for new products or emerging product demand, Filipino consumers indicated products which centered on affordability, health and sustainability, and convenience as important considerations. (See Chart 3).
“The findings of this new report highlight the demand on health and sustainability among consumers,” emphasises Jamieson. “As consumers seek out healthier and eco-friendly choices, it becomes increasingly important to consider this demand in the new product development process. There must be a balance between ecological and effectiveness claims, testing and optimizing claims and packaging before going to market,” Jamieson advises.
CHART 1: TOP 5 SOURCES OF INFORMATION ON NEW PRODUCTS, PHILIPPINES
CHART 2: TOP FIVE DRIVERS OF NEW PRODUCT PURCHASES, PHILIPPINES
CHART 3: EMERGING NEW PRODUCT DEMAND, TOP FIVE, PHILIPPINES
