Transcript New Product & Service Development Final Project October 30, 2010 Screens and gates are a critical part of the NPD process.

New Product & Service Development
Final Project
October 30, 2010
Screens and gates are a critical part of the NPD
process
2
Gate-keepers need information they can rely on
• Unbiased
– from someone not at risk of falling in love with idea
• Comprehensive
– total market view vs. comparing to self
• Consistent
– guarantee criteria are not “adjusted” from gate to gate
3
Some of the inputs for applying gate criteria are
difficult to obtain from internal sources
• Performance vs. internal criteria
– Strategic fit
• Performance vs. competition
– Will the proposition succeed at differentiating itself in market?
– Will it be seen as having an advantage over similar products?
• Performance vs. volumetric objectives
– Will the initiative generate enough volume to sustain distribution?
– Will it recoup the investment?
– Will it generate incremental sales?
4
Ideation: Cast a broad net
5
Accelerate promising ideas and weed out losers
Differentiation
HIGH
• Funnel starts broad and narrows down quickly
LOW
Find a Motivator
Accelerate
Abandon or Rework
Find a Hook
Appeal
HIGH
6
Expansion and Surface Evaluation:
Separate big ideas from small
7
Prioritize
• Performance vs. competitive set
–
–
–
–
–
Purchase interest
Uniqueness
Liking
Value
Frequency and quantity of consumption
+
• High-level sales expectations
8
Detailed Evaluation:
Make big ideas bigger
9
Improve the ideas that already have potential to
win
• Optimize
– Consumer adoption process:
•
•
•
•
Stand out among competition
Clearly communicate the message
Drive interest by addressing a need or want better than other products do
Avoid barriers at the point of purchase
• Delight – exceed expectations
• Assess concept-product fit early in the NPD process
• Set appropriate volumetric expectations
10
Develop, test, deploy
11
Launch: Presentation is essential
• Execute with excellence
– Continuous launch tracking
– Course-correct as necessary
12
PLR: Don’t tell fish tales – get
the story right
13
PLR: Validate and learn
• Plan vs. execution
• Sales expectations vs. actual
• Lessons learned
• Total system accuracy
14
Total system accuracy
Idea
Was Idea Screen predictive of
concept performance?
Concept
Was Surface Evaluation
predictive of later-stage
performance?
Planned proposition & support
Was the launch executed with
excellence?
Actual proposition and support
Sales forecast
Was the forecast
accurate?
Actual sales
15
Thank you!
Comments?