Every year, brands launch hundreds of thousands of new products. Many of them are a spectacular success. However, not every such launch brings the expected effect for the investor. Sometimes, the costs of entering the market even eat up all the profits from sales.
In his book Buyology, Martin Lindstrom writes that the mortality rate among new brands is an average of 83% worldwide. In the United States, it is 80%, and in Europe, the mortality rate is around 60-80%. The Asian market is said to be the hardest, specifically in Japan, where the mortality rate is as high as 97%.
Source: Mortality among new brands, based on: Lindstrom, M., Zakupologia
How long does it take for these new brands to reach their business demise? Just three months. Only 90 days on average are needed to determine whether a concept has caught on.
We can therefore assume that the job position of a brand manager in the case of a new brand launch is an extremely short experience.
Does every brand have to be accepted on the market?
In 2019, we had the opportunity to work on cambodia telegram data a very ambitious project to introduce a startup to the Polish market that addresses its value proposition to seniors (55+). To be precise, our clients found an untapped gap in the Polish eco-commerce.
During the work, we collected material on potential competition for our client’s startup. With access to Kantar Media, we were able to determine what marketing budgets (approximately) were managed by market rivals who were already operating in close segments and who could quickly expand their businesses to an additional target group.
Based on the research conducted . It turned out that these are tens of millions of zlotys per year.
We completed the project and received thanks from the client.
However, after counting the . Sabres . The trainings master classes seminars client put his plans on the shelf. He did not dare to start the implementation. According to the investors, the marketing outlays would have to be too high, and knowing the statistical chances of success of the new venture, they would have to put all their resources on one card. In the end . They did not dare to do that.
A brand manager brought in from an international corporation to coordinate the implementation of a marketing strategy was fired while for the client was still being developed .
By the way, in light of the current knowledge about the eco-commerce effects of the pandemic, the decision to suspend the implementation of the agb directory project may be a huge reason for them to regret today due to FOMO . Which may undoubtedly haunt them now.