Winning At New Products 1111
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Four Steps to Product Innovation Patrick T. Howley The Howley Group
description
4 Steps For Developing Business Building New Products
Transcript of Winning At New Products 1111
Four Steps to
Product Innovation
Patrick T. Howley
The Howley Group
The Howley Group, LLC
Four Steps
1. What is your brand?
2. Who is your target?
3. What is your target’s current state?
4. How can you better the life of your target?
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Olay: Skin Beauty
“Love the skin you’re in”
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Starbucks – The Third Place
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Nike – Improve the performance
of serious athletes
Football
Skateboard
Cycling
Hockey Golf
Track & Field Yoga
Cross-Training
Soccer
Running
Baseball
Tennis
Who is your target?
CurrentUser
Non-User, Category
User
Non-Category User
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Size of
Opportunity
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Current Users Increase Consumption
New Occasions
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Current Users Increase Consumption
New Occasions
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Competitor’s UsersColgate wanted Crest Tartar Control users!!!
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Non-Users - McDonalds
Current Users
• Kids – Happy Meals
• Fast Food Adults – Burgers & Fries
Non-Users
• Health Conscious Adults
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Non-users - McDonalds
Early 2003 introduce salads
Lose money on salads!!!
0
20
40
60
2003 2009
Stock Price
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Line Extensions that didn’t work
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Line Extensions that didn’t work
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Line Extensions that didn’t work
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3. What is your target’s current
state?
• Walk in their shoes.
• Question the paradigms.
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Walk in their shoes – 3M
Masking tape was invented when a
3M lab technician (Charles Drew)
observed an auto-body shop
worker struggling.
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Walk in their shoes - Intuit
Intuit noticed that small business
were using their personal financial
software for their business.
QuickBooks has 85% of the
market.
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Walk In Their Shoes – Dutch Boy
Dutch Boy Twist and Pour increased paint sales by 35%.
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Question the Paradigm
Oral Care Customer
Cosmetic Therapeutic
---------------------------------------------Whitening Cavity Protection
Breath Freshening Tartar Control
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Question the Paradigm
Oral Care Customer
Less Involved More Involved
---------------------------------------------Less-----------------------------------------------------------------More Whitening
Less---------------------------------------------------------More Breath Freshening
Less----------------------------------------------------------More Cavity Protection
Less-------------------------------------------------------------More Tartar Control
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4. How can you better the life of
your target?
“People don’t want to buy a quarter-
inch drill. They want a quarter
inch hole.”
Theodore Levitt
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Generating Ideas
1. Visit New Markets
2. Brainstorming with Experts
3. Look Around at Niche Segments
or Other Categories
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Visit New Markets - Listerine
• Listerine Oral
Care Strips in
Asia 10 years
before introduced
into the US
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Visit New Markets - Starbucks
• Starbucks started in
1971.
• “The third place” idea
based on a trip to
Milan in 1983.
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Visit New Markets – Procter &
Gamble
• Product found in Japanese
convenience store in Jan.
2001.
• Introduced in US in 2003.
• Attitude change from
Not-Invented-Here to
Proudly-Found-Elsewhere.
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Brainstorming with Experts
Don’t ask the average consumer to
tell you what they want in the
future.
“If I had asked my customers what they wanted, they
would have said a faster horse” Henry Ford
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Look Around
• Apple Crumb• Strawberry• Key Lime• Lemon Meringue• Banana Cream• Chocolate Cream• Pecan
Godiva looks to dessert categories to gain
inspiration for pie-flavored chocolates:
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Look Around
In 2000, a Disney executive went to check out a
“Disney on Ice” show and found himself
surrounded by little girls in princess costumes.
Princess costumes that were
– horrors!- homemade.
Princess Products 2009 sales: $4 billion.
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Look Around
• Avon Sheer Sangria nail polish
• Malin + Goetz rum and mojito candles
• Victoria Secret Appletini Beauty Rush
Lip Gloss
• Demeter White Russian perfume
Products using cocktail hour as inspiration:
Niche Segments – Gluten Free
• 1999 – 1 in 10,000 in the US had celiac
disease. (medical textbook)
• Gluten-free products $6.3 Billion (Spins) and
up 33% since 2009 (Nielsen).
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Niche Segments – Soyfoods
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Niche Segments – Gluten Free
• 1999 – 1 in 10,000 in the US had celiac
disease. (medical textbook)
• Gluten-free products $6.3 Billion (Spins) and
up 33% since 2009 (Nielsen).
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Four Steps to Product Innovation
1. Define your brand.
2. Define your target.
3. Know your target’s current state.
4. Look to better the life of your
target.
