New Product & Service DevelopmentFinal Project

October 30, 2010

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Screens and gates are a critical part of the NPD process

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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

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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?

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Ideation: Cast a broad net

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Accelerate promising ideas and weed out losers

• Funnel starts broad and narrows down quickly

Appeal

Find a Motivator Accelerate

Abandon or Rework Find a HookDif

fere

nti

atio

n

LOW HIGH

HIG

H

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Expansion and Surface Evaluation: Separate big ideas from small

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Prioritize

• Performance vs. competitive set– Purchase interest– Uniqueness– Liking– Value– Frequency and quantity of consumption

• High-level sales expectations

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Detailed Evaluation:Make big ideas bigger

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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

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Develop, test, deploy

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Launch: Presentation is essential

• Execute with excellence– Continuous launch tracking– Course-correct as necessary

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PLR: Don’t tell fish tales – get the story right

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PLR: Validate and learn

• Plan vs. execution

• Sales expectations vs. actual

• Lessons learned

• Total system accuracy

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Total system accuracy

Idea

Concept

Planned proposition & support Sales forecast

Actual salesActual proposition and support

Was Idea Screen predictive of concept performance?

Was Surface Evaluation predictive of later-stage performance?

Was the forecast accurate?

Was the launch executed with excellence?

Thank you!

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