How important is the in-store environment for new brands?

New brand launches are notoriously risky, with high failure rates. Yet, most research focuses on the out-of-store factors inherent to their success/failure, overlooking strategies that can be employed in-store.


New brands are essential for business growth and serve multiple purposes, such as helping companies to appeal to variety seeking consumers and opening up new revenue streams (Kapferer, 2012; Trinh et al., 2016). However, they are notoriously risky endeavours. Victory et al. (2021) conducted an extensive study of over 80,000 stock keeping units introduced into the USA and found that 25% of new launches are no longer offered one year after launch, increasing to 40% after a second year. To date, most research has focused on how to improve the success rates of new brands through out-of-store factors, such...

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