new product development process

22
New Product Development Process March 2010

Upload: carsyn

Post on 10-Jan-2016

40 views

Category:

Documents


1 download

DESCRIPTION

New Product Development Process. March 2010. Vision – to be a leader in private label product offering to the marketplace. Mission – to successfully launch 10 new products yearly offering the best quality, price and reliability. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: New Product  Development Process

New Product Development Process

March 2010

Page 2: New Product  Development Process
Page 3: New Product  Development Process
Page 4: New Product  Development Process

• Vision – to be a leader in private label product offering to the marketplace.

• Mission – to successfully launch 10 new products yearly offering the best quality, price and reliability.

• Goal – Enhance Premier’s business in Foot Care, First Aid and strategically related categories by developing and creating a “differentiated product that delivers unique benefits and superior value to the customer.”

• Strategy – create products that use Premier’s advantage in: - manufacturing process - affiliate partners and alliances- relationship with customers- marketing and sales resources

Page 5: New Product  Development Process

Current New Product and Service Development Process

Discovery

Gate 1

Scoping

Ideation:CompetitorsCust suggestionSalesMarketing

Can we manufacture it?

Magnitude of opportunityInitial screenings

Gate 2

Gate 3

Development Testing/Validation

Gate 4

Production• No systematic process in place to collect ideas internally• No stage to Build Business case (in-depth research)• Decisions and steps are rushed or skipped• No Post-Launch Review

How can we refine this process?

Proto-typeIn-house testsLegal and patents

Decision to spend Go to testingExtensive testing and validation

Test results

Page 6: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

The New Product and Services Phase-Gate Process

3-phases of Activity:

1. Ideation

2. Elimination

3. Development

Introducing…..

Page 7: New Product  Development Process

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Ideation

How can we fill our Idea bank?

• Annual Sales Summit • Conferences, trade shows• Customer service department• Sales, marketing, management, buyers, and sales

brokers • Also collect from internal employees (manufacturing,

QA, regulations, planning and purchasing) – set up a reward system for product/improvements chosen and made.

• Triggers:Retail market studies/visits

Page 8: New Product  Development Process

Ideation

Surface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Ideation screen

Ideation Screen

Must-meet criteria:

does the product fit into company’s product mix? is the product in-line with company’s strategic goals? generate US$100K or 50K unit volume? net profit margin @ 20%? is the product feasible with current resources? is there a need for this product in our market? can we sell this in our current market/distribution?

Gatekeepers: Sales, Company Management

Page 9: New Product  Development Process

Ideation screen

Ideation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Surface Evaluation

Preliminary market assessment (Pro-active development)• internet search, store checks, Evaluation IRI data• How can the product be differentiated? (delivery,

ingredients used, design, packaging)

Preliminary technical assessment:• Do we have strategic production capabilities process

for this item?• will it expand business arena, product advantage

Preliminary legal assessment

Preliminary Financial assessment

ROI, how long will it take to recoup investments?

Surface Evaluation

“The greatest differences (between winner and loser) lie in the first few steps of the new product process ”-Robert G. Cooper

Page 10: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Detailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

S.E. Screen

Market issues, barriers to entry? Technical issuesLegal issuesFinancial issues with payback period/margins

Gatekeepers:- Top Management- Manufacturing engineers- Legal counsel- Vendors

Surface Evaluation Screen

Page 11: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screen

Detailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Detailed Evaluation

Detailed Evaluation

Building the Business Case

Product rationale

Competitive Analysis : rate of growth, market size, understand current market

Target market/ channel

Product benefits, Product strategy

*Manufacturability and Selection of vendors, logistics

Compile PD timeline with projected investment $ for each stage.

Forecast potential sales for year 1 and year 2

Page 12: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed Evaluation

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

D.E. Screen

• Financial req’s with payback period/margins.• Invest in equipment if payback is less than 3

years.• Has there been a change in market conditions?• Legal issues are unworkable• Initial response from buyers weak/strong

Decision to spend money

Gatekeepers: Operations, outside Sales reps

Detailed Evaluation Screen

Page 13: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Cross-Functional Development

• Physical Prototype initiation• Have all departments updated on development

progress & their roles

Marketing: Build concrete development timeline, market launch plans, sell-sheets, consumer feedback

Sales: collect customer feedback and forecasts QA: In-house testing Legal Dept: Resolve any legal hurdles Purchasing: finalize all sources, components and

vendors Accounting: review all sales #’s and margins

Cross Functional Development

Page 14: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

CFD Gate

Cross Functional Development Gate

Satisfy customer timeline execution (POG)? Meet updated financial numbers? Consumer feedback positive? Quality assurance from QA?

Go to test

Gatekeepers: Operations, Buyers

Page 15: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Testing

Testing and Validation

Sample production generatedCollect customer feedbackConduct consumer testing panelInitiate Industry product testing: STRInitiate Stability lab testing: accelerated 90-daysIn-house QA testing (drug fact panels, ship testing req’s, etc.)Develop technical specifications

Collect customer acceptance (conference mtgs: ECRM, PLMA)

Page 16: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Testing Gate

Testing Gate

Evaluate quality of testing and validation

1. Consumer testing results positive?2. Industry product testing: STR = 10?3. Stability lab testing = stable after accelerated

90 days?4. Ship-test, passed?

Financial reviewDecision to go/kill

Gatekeeper: Marketing

Page 17: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Deployment

Deployment

Is everything ready/ in-place?

Marketing materials sent

Logistics: Receive all components in-house

Finalize production schedule

Page 18: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Launch Post Launch Review

Post Launch Review Gate

Deployment Gate

Deployment Gate

Test run production- equipment/machine functions properly- production rate at estimated average

Page 19: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Post Launch Review Gate

Launch Post Launch Review

Launch / Post Launch Review

Launch = ProductionDelivery to DC’s

Post Launch Review Review final profits, costs vs. orig forecast.Did all departments deliver/perform?What were the projects strenghts/weakness?Regroup with team to discuss what was learnedMake improvements to NPD process

Page 20: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

Post Launch Review Gate

Is everything running as planned?

Are we hitting all numbers?

All possible improvements made?

Page 21: New Product  Development Process

Ideation

Ideation screenSurface Evaluation

Surface Eval. screenDetailed EvaluationDetailed Eval. Screen

Cross-Functional Development

CFD Gate

Testing

Testing Gate

Deployment

Deployment Gate

Launch Post Launch Review

Post Launch Review Gate

New Product and Services Phase-Gate Process

It Works!

Page 22: New Product  Development Process