TNS NIPO webinar 7 en 12 maart: Is research killing your best new product ideas?

Innovation & Product Development Is research killing your best new product ideas…

Is research killing your best new product ideas without you even knowing it?


Focussed innovation is vital for growth

Today’s business

More

cust

om

ers

More money from each customer

3


Deliver growth

Minimise risk of failure

Reduce time from ideation to market

The innovator’s challenge

Develop radical innovation

4


But the way most people screen new product concepts is seriously flawed

6

Product A Product B Product C Product D Product A Product B Product C Product D

Sales six months after launch (€m)

Cannibalisation Incremental volume


7

We at TNS

In 40% of cases, companies would have taken different screening decisions if they had focused on incremental growth potential instead of pure volume.


8

We must take incremental growth potential into account % Incremental

Low

High

Low High

Trial potential

Prioritisation based on incremental trial potential


Understanding incremental growth potential means better advice

9

Progress

Stop

Rework


Understanding incremental growth potential means better advice

10

Incremental winners

Investigate

De-prioritise

Winning cannibals?


A correct choice upfront does save a lot of money

11

29%

Prelim market assess

Idea screening

Prelim tech assess

Market study

Financial analysis

Product development

In-house prod test

Customer prod test

Test market

Pilot production

Business analysis

Production

Market launch

Average % of innovation spend

Source: Cooper & Kleinschmidt

Point of no return


13

We identify the concepts with strong trial potential

Top 25% benchmark

Bottom 50% 50 – 25% Top 25%

Trial Bottom 50% benchmark

Snack bar Crisps of the world

Dressed to krill

Spicy variant

Pizza pieces

Chilli variant

Trial

10 39 28 16 9 47 0

23

32

60


14

Together with an understanding of incremental potential

Top 25% benchmark

Bottom 50% 50 – 25% Top 25%

Incremental trial Cannibalisation Bottom 50% benchmark

Snack bar Crisps of the world

Dressed to krill

Spicy variant

Pizza pieces

Chilli variant

Tri

al

4 11 24 4 9 37 0

60

16

22

Winning cannibal?

Incremental winner

Incremental winner

De-prioritise De-prioritise De-prioritise


15

Growth Development guide

Product expectations: High quality Long-lasting flavour

Price point: € 1.49 perceived as good

Target

Potential incremental buyers currently buy brands X and Y

Watch out

Slight weakness in clarity of message

To provide precise development plans

7

4 13

15

19

24

Based on Total Category Buyers

Incremental growth Brand cannibalization Portfolio cannibalization Bottom 50% benchmark Top 25% benchmark Bottom 50%

50 - 25% Top 25%

Strengths

64

Relevance

59

Clarity

Weaknesses

63

Price Value

40

Excitement

55

Early Adopter trial

28

Uniqueness

21

Appeal

17

Credibility


We use these principles in all steps in the roadmap to growth

17

Corporate goals & capabilities

Ideation Market opportunities Concept prioritisation Concept /product development and

refinement

Volume estimation/launch


Where to search for growth opportunities?

18

Matrix Need for growth

Commercial development

Market launch

Idea or strategy generation

Concept screening

Sized, prioritised, and profiled product opportunities


Fuelling growth with a broad range of initiatives

19

Renovation

Clear guidance on how to improve

existing products

Assess potential for products imported

from other countries

International portfolio roll-out

Success requirements to guide new product development

Innovation

Portfolio optimisation

Maximise portfolio efficiency


Stick with the plan: idea to execution

20


21

And take value into account

(from the Oxford English Dictionary)

Value [noun]

2) how much something is worth compared with its price

1) how much something is worth

3) the quality of being useful or important [synonym: benefit]

to value [verb]

2) to decide that something is worth a particular amount of money

1) to think that something is important


22

TNS NIPO webinar 7 en 12 maart: Is research killing your best new product ideas?

Documents

Transcript of TNS NIPO webinar 7 en 12 maart: Is research killing your best new product ideas?