Why Consumer Goods Companies Struggle with Innovation

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New research from CGT and Sopheon looks at challenges impacting the innovation performance of today’s CG manufacturers. Benchmark your innovation practices and results against industry peers.
Quick facts:
- Only 1 in 5 new CG products is considered “highly innovative”
- Typical planning horizon for CG companies is 3 years or less
- 25% of revenue for the average CG company comes from products introduced in the last 3 years
- On average, only 50% of new CG products meet their profit objectives.

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Why Consumer Goods Companies Struggle with Innovation

  1. 1. Why Consumer Goods CompaniesStruggle with Innovation<br />New Research Sheds Light on Gap<br />Between Goals and Performance<br />
  2. 2. The Survey<br />Conducted jointly by CGT magazine and Sopheon<br />Distributed globally<br />Respondents from cross-section of CG markets<br />Majority with revenues of $300M+<br />
  3. 3. Sample Findings<br />Top three reasons new consumer products fail to achieve profit objectives<br /><ul><li>Products not differentiated (59%)
  4. 4. Ineffective promotion (53%)
  5. 5. Inadequate market analysis (51%)</li></ul>Biggest challenge to ideation: good ideas get “stuck” and don’t move forward<br />Only 1 in 5 new CG products is considered “highly innovative:”<br />Characterization of New Product Releases in Past 12 Months<br />
  6. 6. Sample Findings<br />Most common information gaps when considering potential new product investments<br /><ul><li>Product’s future financial value (45%)
  7. 7. Validation of market need (41%)
  8. 8. Project feasibility / risk (33%)</li></ul>Eighty-two percent of respondents use gated product development processes; 50% say their processes are regularly adhered to<br />Typical planning horizons are three years or less:<br />Time Horizon for Strategic Planning<br />
  9. 9. Why Consumer Goods CompaniesStruggle with Innovation<br />For complimentary access to all the <br />survey’s findings go to:<br />http://budurl.com/CGTresearch<br />

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