www.gnpd.com david jago, director gnpd consulting services 05 2005 what makes a sustainable winning...
TRANSCRIPT
www.gnpd.com
David Jago, Director GNPD Consulting Services
05 2005
What makes a sustainable winning product?
www.gnpd.com
Winning products - introductory comment
For every 11 “serious” new concepts, 3 enter the development stage, 1.3 are launched, 1 succeeds
“It takes up to two years to tell whether a product will be a long-term success”
(allowing time for expected fall-off in sales after the novelty has worn off)
- VP Innovation, PepsiCo North America
www.gnpd.com
Total introductions of food and drink products, UK and USA
Country 2002 2003 2004 Total% change 2002-2004
UK 3,520 3,229 2,977 9,726 -15%USA 10,853 12,683 15,412 38,948 42%Source: Mintel's Global New Products Database
0 5,000 10,000 15,000 20,000
2002
2003
2004
USA
UK
The new product universe
www.gnpd.com
0 1,000 2,000 3,000 4,000
New Product
New Variety/Range Extension
Total
2004
2003
2002
Introductions of food & drink products, UKLaunch TypeNew Product 2,259 64% 2,102 65% 2,014 68% 6,376 66%New Variety/Range Extension 1,261 36% 1,127 35% 963 32% 3,352 34%Total 3,520 100% 3,229 100% 2,977 100% 9,728 100%Source: Mintel's Global New Products Database
2002 2003 2004 Total
0 1,000 2,000 3,000 4,000
New Product
NewVariety/Range
Extension
Total
2004
2003
2002
What do we mean by new products?
www.gnpd.com
Ground rules for winning products
• Does it do a better job than what’s currently available?
• Is it less expensive than existing products?
• Does it provide greater benefits?
• Is it easy to use?
• Is it readily available?
www.gnpd.com
Ground rules for winning products
• But rules are there to be broken…
• Products that are more expensive can be very successful
• Benefits can be perceived rather than actual
• Ease of use is not critical to many ready-to-eat foods/RTDs
• Distribution is critical, but not every product needs the reach of Coke
www.gnpd.com
Before you start...
• Have you looked at what’s been tried before, and what you can learn from it?
• Need for thorough concept screening
Walkers Shots, UK (2003); Sunshine Biscuits’ Cheez-It Gripz and Keebler Chips Deluxe Gripz, USA (2005)
www.gnpd.com
Before you start...
• Does the product fit the company?
• If not, what can you do about it?
Seeds of Change and Cocoa Via (Masterfoods);Ensemble (Kellogg)
www.gnpd.com
Differentiation
• Does it have perceived or actual benefits greater than its competitors?
Wrigley’s Extra Thin Ice; Pringles Dippers; Muller Fruit Corner Snack Size (launched as Minis)
www.gnpd.com
Key claims/properties
• Are the key claims/properties in tune with what consumers need or understand?
• And does the package communicate the benefits?
www.gnpd.com
In tune with what consumers understand
Kellogg’s Rice Krispies Muddles (UK) and MultiGrain (Scandinavia)
www.gnpd.com
In tune with consumer needs and desire for “natural”
Danone’s Danacol; McNeil’s Benecol
www.gnpd.com
In tune with contemporary lifestyles
Weetabix Alpen Cereal Bar
www.gnpd.com
Geared to the (appropriate) target market
Muller Corner Squeezers (2002) and Yogz Squeezems (2004)
www.gnpd.com
Is it memorable?
• Does it have personality?
• Consumers have to understand it and identify with it
www.gnpd.com
Personality
Innocent Smoothies for Kids
www.gnpd.com
Helping consumers identify with it
Nestle Rowntree Little Notions low calorie snacks; Magnum 7 Deadly Sins ice creams
www.gnpd.com
Where will it go next?
• How might it react to changing trends?
• How might it be extended to appeal to new groups of consumers (with a consistent message)?
www.gnpd.com
Good Humor-Breyers’ CarbSmart, SugarSmart, and HeartSmart ice creams (Unilever), USA
Reacting to changing trends
www.gnpd.com
Wrigley’s Extra Thin Ice, Extra Mints, Extra Ice gum
Appealing to new groups of consumers
www.gnpd.com
Does it taste good?
www.gnpd.com
Finally, don’t make it just because you can!
Yogurt for dogs (Germany), high fibre beer (Japan), banana-flavoured mayonnaise (South Korea)
www.gnpd.com
“We must continue to excite and delight consumers, or they’ll move on…”
(Chris Lowe, Coca-Cola North America)
Winning products
www.gnpd.com
www.gnpd.com