new product development process
DESCRIPTION
New Product Development Process. March 2010. Vision – to be a leader in private label product offering to the marketplace. Mission – to successfully launch 10 new products yearly offering the best quality, price and reliability. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/1.jpg)
New Product Development Process
March 2010
![Page 2: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/2.jpg)
![Page 3: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/3.jpg)
![Page 4: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/4.jpg)
• Vision – to be a leader in private label product offering to the marketplace.
• Mission – to successfully launch 10 new products yearly offering the best quality, price and reliability.
• Goal – Enhance Premier’s business in Foot Care, First Aid and strategically related categories by developing and creating a “differentiated product that delivers unique benefits and superior value to the customer.”
• Strategy – create products that use Premier’s advantage in: - manufacturing process - affiliate partners and alliances- relationship with customers- marketing and sales resources
![Page 5: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/5.jpg)
Current New Product and Service Development Process
Discovery
Gate 1
Scoping
Ideation:CompetitorsCust suggestionSalesMarketing
Can we manufacture it?
Magnitude of opportunityInitial screenings
Gate 2
Gate 3
Development Testing/Validation
Gate 4
Production• No systematic process in place to collect ideas internally• No stage to Build Business case (in-depth research)• Decisions and steps are rushed or skipped• No Post-Launch Review
How can we refine this process?
Proto-typeIn-house testsLegal and patents
Decision to spend Go to testingExtensive testing and validation
Test results
![Page 6: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/6.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
The New Product and Services Phase-Gate Process
3-phases of Activity:
1. Ideation
2. Elimination
3. Development
Introducing…..
![Page 7: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/7.jpg)
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Ideation
How can we fill our Idea bank?
• Annual Sales Summit • Conferences, trade shows• Customer service department• Sales, marketing, management, buyers, and sales
brokers • Also collect from internal employees (manufacturing,
QA, regulations, planning and purchasing) – set up a reward system for product/improvements chosen and made.
• Triggers:Retail market studies/visits
![Page 8: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/8.jpg)
Ideation
Surface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Ideation screen
Ideation Screen
Must-meet criteria:
does the product fit into company’s product mix? is the product in-line with company’s strategic goals? generate US$100K or 50K unit volume? net profit margin @ 20%? is the product feasible with current resources? is there a need for this product in our market? can we sell this in our current market/distribution?
Gatekeepers: Sales, Company Management
![Page 9: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/9.jpg)
Ideation screen
Ideation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Surface Evaluation
Preliminary market assessment (Pro-active development)• internet search, store checks, Evaluation IRI data• How can the product be differentiated? (delivery,
ingredients used, design, packaging)
Preliminary technical assessment:• Do we have strategic production capabilities process
for this item?• will it expand business arena, product advantage
Preliminary legal assessment
Preliminary Financial assessment
ROI, how long will it take to recoup investments?
Surface Evaluation
“The greatest differences (between winner and loser) lie in the first few steps of the new product process ”-Robert G. Cooper
![Page 10: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/10.jpg)
Ideation
Ideation screenSurface Evaluation
Detailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
S.E. Screen
Market issues, barriers to entry? Technical issuesLegal issuesFinancial issues with payback period/margins
Gatekeepers:- Top Management- Manufacturing engineers- Legal counsel- Vendors
Surface Evaluation Screen
![Page 11: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/11.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screen
Detailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Detailed Evaluation
Detailed Evaluation
Building the Business Case
Product rationale
Competitive Analysis : rate of growth, market size, understand current market
Target market/ channel
Product benefits, Product strategy
*Manufacturability and Selection of vendors, logistics
Compile PD timeline with projected investment $ for each stage.
Forecast potential sales for year 1 and year 2
![Page 12: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/12.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed Evaluation
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
D.E. Screen
• Financial req’s with payback period/margins.• Invest in equipment if payback is less than 3
years.• Has there been a change in market conditions?• Legal issues are unworkable• Initial response from buyers weak/strong
Decision to spend money
Gatekeepers: Operations, outside Sales reps
Detailed Evaluation Screen
![Page 13: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/13.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Cross-Functional Development
• Physical Prototype initiation• Have all departments updated on development
progress & their roles
Marketing: Build concrete development timeline, market launch plans, sell-sheets, consumer feedback
Sales: collect customer feedback and forecasts QA: In-house testing Legal Dept: Resolve any legal hurdles Purchasing: finalize all sources, components and
vendors Accounting: review all sales #’s and margins
Cross Functional Development
![Page 14: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/14.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
CFD Gate
Cross Functional Development Gate
Satisfy customer timeline execution (POG)? Meet updated financial numbers? Consumer feedback positive? Quality assurance from QA?
Go to test
Gatekeepers: Operations, Buyers
![Page 15: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/15.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Testing
Testing and Validation
Sample production generatedCollect customer feedbackConduct consumer testing panelInitiate Industry product testing: STRInitiate Stability lab testing: accelerated 90-daysIn-house QA testing (drug fact panels, ship testing req’s, etc.)Develop technical specifications
Collect customer acceptance (conference mtgs: ECRM, PLMA)
![Page 16: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/16.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Testing Gate
Testing Gate
Evaluate quality of testing and validation
1. Consumer testing results positive?2. Industry product testing: STR = 10?3. Stability lab testing = stable after accelerated
90 days?4. Ship-test, passed?
Financial reviewDecision to go/kill
Gatekeeper: Marketing
![Page 17: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/17.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Deployment
Deployment
Is everything ready/ in-place?
Marketing materials sent
Logistics: Receive all components in-house
Finalize production schedule
![Page 18: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/18.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Launch Post Launch Review
Post Launch Review Gate
Deployment Gate
Deployment Gate
Test run production- equipment/machine functions properly- production rate at estimated average
![Page 19: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/19.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Post Launch Review Gate
Launch Post Launch Review
Launch / Post Launch Review
Launch = ProductionDelivery to DC’s
Post Launch Review Review final profits, costs vs. orig forecast.Did all departments deliver/perform?What were the projects strenghts/weakness?Regroup with team to discuss what was learnedMake improvements to NPD process
![Page 20: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/20.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
Post Launch Review Gate
Is everything running as planned?
Are we hitting all numbers?
All possible improvements made?
![Page 21: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/21.jpg)
Ideation
Ideation screenSurface Evaluation
Surface Eval. screenDetailed EvaluationDetailed Eval. Screen
Cross-Functional Development
CFD Gate
Testing
Testing Gate
Deployment
Deployment Gate
Launch Post Launch Review
Post Launch Review Gate
New Product and Services Phase-Gate Process
It Works!
![Page 22: New Product Development Process](https://reader036.vdocuments.us/reader036/viewer/2022062800/568142c4550346895daf1460/html5/thumbnails/22.jpg)