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Tag Archives: Staged Tollgate New Product Development Process

How To Make Sure You’re Working On The Right New Products

First published on 1/30/2013 on www.marketingprofs.com – a preminent resource on best practice marketing technigues for the benefit of the members. Their editorial team cuts through all of this marketing noise to  find the experts and in-the-trenches marketers who know what they are talking  about. Then we take their know-how and mix it with our marketing smarts to turn  it into practical advice that you can actually use through our newsletters,  conferences, seminars, podcast, articles, and webcasts. We must be doing it  right, because we’re a multi-million dollar company that serves a community of  more than 496,000 entrepreneurs, small-business owners, and professional  marketers at the world’s largest corporations. Read more: http://www.marketingprofs.com/about/#ixzz2IHCDaHq8

Product Portfolio Management

It happens all the time.  You learn your active new product programs are either falling behind or the scope of the project has radically changed.  Your teams are telling you they don’t have enough resources to do ALL programs.  Moreover, they seem to be working at cross purposes to one another and have different opinions on the probability of getting the idea to work.  You need to figure out a way to get everyone on the same page so you can keep your new product programs on track and get your ideas to market in a timely fashion.  In this article we will discuss ways to make sure you’re properly resourcing your new product portfolio and then develop tracking tools to make sure they launch on time.  In a prior article (Are your new product ideas attractive enough?), I discussed the major types of new products as well as their differing risk/reward profiles: Type 1:  Simple derivatives/new models of current product lines – easiest to do, lowest risk. Type 2:  Line extensions. Type 3:  New products/innovations in a company’s core category. Type 4:  New product platforms in a new category (to the company) – hardest to do, highest risk. I then recommended using an objective assessment tool to help rank alternative new concept attractiveness from high to low.  The goal is to prioritize your new product portfolio – just like your individual financial investments.  Once completed you then need to determine if your new product portfolio is “balanced” and can potentially deliver results vs. expectations.  There are three critical elements to consider to make sure your new product portfolio is “balanced”.

  • Are your new product ideas strategically aligned with business and innovation growth strategies
  • Is your new product portfolio balanced across product type, risk, time and resources
  • Can they deliver against new product revenue growth expectations – are they sufficient?

One tool than can help in this assessment is development of a new product road map.  A graphical hypothetical product road example is shown below:

New Product Portfolio Management - Product Road Status

 Click On Image To Enlarge

As you can see this graphical plot shows the type of new product, the size of the opportunity, where it is in the new product process as well as its estimated development timeline.  This tool can then be used to help allocate limited development resources to achieve the desired risk vs. reward balance requirements. 

Fortunately, this same tool can also help you track and manage your new product portfolio.  All one needs do is plot progress along the launch time line as well as its current status in the new product development process at different points in time (i.e. quarterly reviews) as shown in the example below:New Product Portfolio Management - Product Road Quarterly Update

 Click On Image To Enlarge

As you can see, these tools are straightforward, easy to understand and really helps to get everyone on the same page.  One minor caveat – in very large/global organizations there can be literally hundreds of new product initiatives making tracking more of a challenge.  Fortunately, there a number of available automated product portfolio management tools on the market.  Once such program is called “Clarity” owned by Computer Associates.  This type of automated tracking programs use a dashboard concept to assist in tracking a large number of new product programs.  See screen shot examples below show how this can be used in larger organizations.

Computer Associates Clarity Program Dashboard Example

 Click On Image To Enlarge

 Computer Associate Clarity Product Portfolio Dashboard Example

Click On Image To Enlarge

One final note.  It’s VERY important both senior and line managers be consistent in their new product resource management decision-making process.  What this means is line managers need to have “straight talk” with their senior leaders regarding realistic risk vs. reward opportunities.  Senior managers also need to realize their teams can’t do everything.  If priorities change too much this sends confusing messages to the organization which can easily cripple getting anything out the door.  Finally, the type of tracking tool that’s used is not as important as having A tool to help manage and track alternative new product concepts.  Product portfolio tracking roadmaps are considered “best practice” at many leading global companies like Proctor and Gamble, General Mills, Coca-Cola, Whirlpool, General Electric and Stanley Black & Decker, etc.  They consistently manage and track their portfolios to make sure they’re delivering the right mix of big and small ideas sufficient to meet the strategic growth objectives of their organizations.  It’s little wonder then that many of these companies are #1 or #2 in their respective product categories.  Can you say your company is on this list? 

Rick Steinbrenner
Chief Marketing Officer/Principal, Brand Marketing Advisors
www.globalbrandguy.com
The Global Brand Guy  

Are Your New Products Concepts Attractive Enough?

Post first published 1/16/13 in the “MENG Blend” on the Marketing Executives Networking Group website – www.mengonline.com.  The destination site for leading marketing executives looking to stay ahead of the curve.  We have more than 1800 of the leading marketing minds in the world eager to meet, communicate, help and share our expertise.

Assessing New Products Concepts Attractiveness

It’s a common dilemma for most companies.  You have multiple new product ideas, but how do you know which ones are the most attractive in terms of consumer/customer interest, market size and growth and where you and your customers can make the most money?  In addition, how long would it take to bring the idea(s) to market and does the company have the right design and build capabilities to make it happen?  The key is to figure out an objective way to assess the attractiveness of alternative new product concepts so you can prioritize those first.  In this article we will discuss the different types of new products and the process you should use to prioritize your new product portfolio.

Many reasons exist on why you need to prioritize your new product portfolio.  Some are:

  • Not all new product programs are the same.  There is a big difference in developing simple model derivatives vs. “disruptive” new product ideas.  You need to tailor your new product process to match the types of new products being developed. 
  • You can’t do everything.  You have limited time, people and development dollar resources.
  • While you might have a great new product idea, new functional technologies might not be developed enough yet to have it work.
  • ŸYou want to be “first to market” vs. competitors.  Studies have consistently shown leading the market with new products is more preferable than following.
  • ŸYou need to make sure your new product development portfolio is aligned with business strategy and goals as well as being sufficient to meet new revenue growth expectations.

The first thing you should do is assess the strategic and technical difficulties in developing your new product ideas.  There are four major new product types groups:

Type 1:  Derivatives/new models of current product lines.  They are just additional product features, color, flavor, scent or size products etc.  Easiest to do and low risk.  Examples include: 10 vs. 12 cup coffee-makers, diet sodas or different cake mix flavors.

Type 2:  Line extensions:  These are current product lines moving into an adjacent category based on the same branding or product platform(s).  Examples include:  Clorox disinfectant wipes, Velvetta’s cheese skillet dinners, or Kellogg’s pop-tarts.

Type 3:  New products in company’s core category:  These include new platforms or delivery systems offering new innovations in the company’s core business.  Examples include: Tide detergent pods, DeWalt cordless power tools and General Electric’s compact fluorescent light bulbs (cfl).

Type 4:  New platform in a new category (to the company):  These concepts have the highest risk, but have the most business impact – i.e. game changers and/or market category creators.  Examples include: Swiffer quick cleaners, iphones/tablets and Keurig K-cup single serve coffeemakers.

These new product types have very different risk vs. reward profiles as conceptualized below:

New Product Types - Risk vs. Reward

Click On Image To Enlarge

Thus, it’s important to know the new product type you’re considering so you can more accurately assess its attractiveness to the company.  Then you need an objective way to assess the attractiveness of alternative concepts since people, time and dollar resources aren’t unlimited.  Fortunately, this step doesn’t need to be 100% accurate or highly complex.  A consistent qualitative ranking assessment will do just fine at this stage.

There are at least five major attractiveness criteria measures you should consider:

  1. Consumer Interest:       Is the concept unique?  Can consumers easily see demonstrable results?
  2. Design & Build Capabilities:  How easy is it to design/build?  Is engineering/R&D familiar with the  technologies involved?  Should you make the product or source it elsewhere?
  3. Market Size/Growth & Competitive Offerings:  How big is the market?  Is it growing and sustainable?  How many major competitors are out there      already?
  4. Financial:  What is the net margin $ potential?  Does the concept require substantial development dollars?  Will it require substantial marketing      communication dollars beyond the launch?
  5. Risk:  Is your concept patentable?  How long will it take to develop?  Will either qualitative and/or quantitative market research be required to help reduce  business risk?

You should weight these measures and combine them into a new product ranking assessment tool similar to the one below.

Concept Attractiveness Scoring Template

Click on Image To Enlarge

Then you grade each one of your initiatives and rank them high to low based on these concept attractiveness scores.  While you could use the above example, you should design your own new product ranking assessment tool consistent with your overall business model since attractiveness criteria can vary from industry to industry.

In sum, it’s not enough just to have great new product ideas.  You need to know what type of product it is and then objectively assess its appeal relative to multiple ideas.  You then need to prioritize your ideas so you can make sure your product portfolio is diversified similar to any financial investment.  This tool can help you and your company manage the “fuzzy front end” vs. it managing you.

Rick Steinbrenner
Chief Marketing Officer/Principal, Brand Marketing Advisors
www.globalbrandguy.com
A Consumer Brand & Product Marketer 

Staged Tollgate NPD For Successful New Product Ideas

This presentation discusses the importance of BOTH product and branding as key drivers for commercial success in new product development.  It details a best practice staged tollgate new product development process along with an example of how it was used to successfully develop new product ideas from scratch.  Then successful development of effective branding and positioning are also presented along with three live examples of how they were successfully deployed in the marketplace.

(Note: this presentation includes three you tube videos which shows execution of the presented brands positioning.  In order to view the videos, you need to do three things.

1) Must have a live internet connection while viewing

2) Save & download the presentation.

3) Then view the presentation in slide show and enable the content when the security alert for macros and active X comes up – (this may or may not happen depending on your computers settings.)

Brand Marketing Advisors New Product Roadmap Successes

This details Rick Steinbrenner’s – the global brand guy – used new product roadmap (s) in developing successful new products .  It presents best practices using staged tollgate new product development processes and gives two examples on how it can be successfully used.