Where does the phrase ‘new and improved’ appear the most? On common products that compete for sales in a mature market.
A mature market is one such as the ‘toothpaste market,’ where toothpaste is found in virtually every home and the total amount of toothpaste sold in a year can grow only as the population grows. This means that Toothpaste A can enjoy an increase in sales only at the expense of Toothpaste B.
Though products such as toothpaste cost only pennies, the fact that they are regularly used by almost everyone means that the total sales volumes are enormous. (Quick U.S. calculation: 250 million people x 12 tubes of toothpaste annually x $1 per tube = $3 billion.) Gaining even one additional percent the market thus represents $30 million - not at all shabby.
Though we all know there is little difference between these everyday household products, advertising research indicates that the phrase ‘new and improved’ in fact does increase sales. For a while. Then the ‘novelty’ wears off, a percentage of consumers switches to another product (now also with a ‘new and improved’ tagline) and the cycle continues.