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David Jago, Director GNPD Consulting Services
05 2005
What makes a sustainable winning product?
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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
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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
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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?
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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?
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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
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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)
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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)
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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)
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Key claims/properties
• Are the key claims/properties in tune with what consumers need or understand?
• And does the package communicate the benefits?
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In tune with what consumers understand
Kellogg’s Rice Krispies Muddles (UK) and MultiGrain (Scandinavia)
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In tune with consumer needs and desire for “natural”
Danone’s Danacol; McNeil’s Benecol
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Geared to the (appropriate) target market
Muller Corner Squeezers (2002) and Yogz Squeezems (2004)
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Is it memorable?
• Does it have personality?
• Consumers have to understand it and identify with it
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Helping consumers identify with it
Nestle Rowntree Little Notions low calorie snacks; Magnum 7 Deadly Sins ice creams
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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)?
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Good Humor-Breyers’ CarbSmart, SugarSmart, and HeartSmart ice creams (Unilever), USA
Reacting to changing trends
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Wrigley’s Extra Thin Ice, Extra Mints, Extra Ice gum
Appealing to new groups of consumers
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Finally, don’t make it just because you can!
Yogurt for dogs (Germany), high fibre beer (Japan), banana-flavoured mayonnaise (South Korea)
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“We must continue to excite and delight consumers, or they’ll move on…”
(Chris Lowe, Coca-Cola North America)
Winning products
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