Introduction
Effective innovation is difficult to come by, but it is the key to sustained competitive advantage in the consumer packaged goods industry. Lessons can be learned from both successes and failures. This case study looks at how New Covent Garden Soup Co has failed to recognize the potential harm to its reputation from running a competition in which there was a strong chance nobody would win.
Features and benefits
- Access comprehensive analysis of global successes and failures in the consumer packaged goods industry to drive ideation and inspiration.
- Obtain country-specific consumer insight to understand the consumer attitudes and needs that underpinned innovation success/failure.
- Avoid costly investments by learning important lessons from companies and brands that have failed or under-delivered.
- Obtain a broader appreciation of the CPG industry by gaining insights from both within and outside of your category.
Highlights
Around 80% of new product innovation fails – highlighting the challenge that industry players face in innovating in today’s competitive market landscape. Failed innovation can severely undermine profits and brand reputations. Conversely, the rewards for successful innovation are substantial.
Datamonitor is constantly monitoring the big winners and losers in the CPG industry. Each case contains background information, describes how developments unfolded, and is contextualized by Datamonitor’s own research and analysis.
This case looks at the example of New Covent Garden Soup Co. By running a highly publicized competition offering a £500,000 prize which was not guaranteed to generate a winner, the company failed to recognise the potential consequences this could cause to the brand’s reputation.
Your key questions answered
- Why is New Covent Garden Soup Co considered an interesting case of failure?
- How does Datamonitor judge the failure of New Covent Garden Soup Co?
- What consumer insight has underpinned this?
- What can I learn from the failure of New Covent Garden Soup Co?