Hollis - Gatekeeping lecture 2

Hollis - Gatekeeping lecture 2 - Product Development...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
The U & I Group Product Development Process Product Development Process
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The U & I Group 2 New Products are THE Key Business Challenge Number one focus for CEO’s and Wall Street New products account for 50+% of sales and 40+% of revenues. (vs 33%, 22% 10 years ago) Expected rate of new product introduction increase 21% over next 5 years Innovativeness drives companies investment value Companies that are doing well today invariable have an enviable stable of new products Companies must be able to consistently create new products year after year
Background image of page 2
The U & I Group 3 Who is Driving New Products? Large companies are driving new products even though the industry has been consolidating. Kraft and General Mills did well. Tyson did not. Kellogg was basically flat.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The U & I Group 4 Are They Delivering? 2002 total number of products introduced up 3.2% from 2001 (top 20) Total number of new food product introductions down 0.5% (all companies) Top 20 companies Late 1990s – approx. 12% 2001 17.4% 2002 18.1% . Highest seen since the late 1980s.
Background image of page 4
The U & I Group 5 What are the Issues? Over half of all new products fail Food: IRI Study of 608 introductions 52% fail 48% success All Industries: New products 46% fail 54% success Source: IRI New product trends 2000. Robert Cooper 2003 Both major and minor intros launched between 10/96 and 10/98 (looking at 2 years post introduction) in 20 categories. Major: New brand or extension into new segment. Minor: form/ flavor extension (not size change).
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The U & I Group 6 General Reasons for New Product Failure % Citing Reasons for Failure 45% Marketing Analysis 30% Product Problems or Defects 25% Marketing Efforts not Enough 18% Higher Costs than Expected 17% Competitive Strength or Reaction 15% Poor Timing of Introduction 11% Technical or Production Problems 22% All Other Source: Robert Cooper 2003
Background image of page 6
The U & I Group 7 What Drives Success? #1 Unique and Superior Product Differentiated Product Delivers unique Benefits Delivers Superior value to the Consumer Type of Product % Succeed Market Share Profit Rating Me Too 18.4% 11.6% 2.6/10 Moderate Advantage 58.0% 32.4% 5.8/10 Superior 98.0% 53.5% 8.4/10 Source: Robert Cooper 2003
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What Drives Success? # 2 Strong Market Orientation. Market driven and consumer focused. --- Good Market research 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Intital Screening Market Assessment Technical Assessment Market Studies Business Analysis Product Development In House Testing Consumer Testing Test Market/ Trial Production Start Up Market Launch Failure Success Source: Robert Cooper 2003
Background image of page 8
The U & I Group 9 What Drives Success? # 3 International Orientation Global vs Glocal # 4 Pre Development Homework Pre Development Homework % Succeed Market Share Profit Rating Poor 31.3% 20.8% 3.7/10 Moderate 68.1% 35.6% 6.2/10 Superb 75.0% 45.7% 7.2/10 Source: Robert Cooper 2003
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The U & I Group 10 What Drives Success?
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 56

Hollis - Gatekeeping lecture 2 - Product Development...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online