Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Staged Tollgate New Product Process Best Practices - The Global Brand Guy

4,493 views

Published on

This details Rick Steinbrenner's - The Global Brand Guy - expertise in new product development. It discusses best practices using staged tollgate new product development processes and gives two examples on how it can be used.

Rick Steinbrenner - The Global Brand Guy

Published in: Business, Design
  • Be the first to comment

Staged Tollgate New Product Process Best Practices - The Global Brand Guy

  1. 1. Staged Tollgate New Product Development Process Best Practices 1 2060 Queensbury Drive Acworth, GA 30102 770-514-9363 rick@globalbrandguy.com Consumer Package Goods Consumer Durables Brand Equity-Building Experience With Leading Global Consumer Brands
  2. 2. 2 Rick Steinbrenner: New Product Development Skills & Experience By Phase Phase I: Opportunity Identification  Competitor marketplace/product review & analyses  New product concept brainstorming – both internal and external  Qualitative consumer research - from informal interviews to focus groups  Quantitative consumer research – from simple concept screens to global conjoint analysis & discrete choice modeling  Syndicated consumer research analyses – Nielsen, IRI, NPD and IMR among others  Functional technology brainstorming experience with engineering and/or research and development functions  Intellectual property reviews and management – both trademarks, patents and licensing agreements  Development of new product design guides and specifications  Critical path timeline development and management  Business proposition development prior to funding requests – including volume/pricing/profitability projections Phase II: Design/Development  Make vs. buy production source evaluations and planning  Capital authorization request development for Sr. management approval  Off-shore production sourcing expertise (Europe, Mexico, Canada, Japan, China and Australia to name a few)  Target product cost development to meet profitability requirements  Advanced manufacturing plant layout/design interface – including production tooling input  Industrial design planning and management  Intellectual property legal filings and development agreements  Consumer in-home use testing verification of product vs. specifications  All facets of marketing planning including but not limited to:  Packaging structure plan  Communications plans - including broadcast TV, direct response TV, print, and online  Channel management strategy and distribution planning  Pricing/discount structures/profitability plans & budgets  Marketing agency interface and management Phase III: Commercialization/Launch  Customer and field sales presentation development  Production planning – to meet customer volume requirements  Customer service briefings – including pricing management  Implementation of marketing plans including but not limited to:  Media placement  Press releases/events  Packaging graphics  Trade marketing collateral from brochures/sell sheets to trade show/industrial video development
  3. 3. “Best Practice” New Product Development Process Overview Phase 1 BusinessTeamReview/Decision Phase 2 BusinessTeamReview/Decision Phase 3 Opportunity Identification Design/Development Commercialization/Launch Major Activities:  Identify new product concepts (sources):  Customer ideas  New functional technologies  Consumer research  Competitive product reviews Brainstorm/develop new concepts Refine & screen new concepts:  Informal customer reviews  Qualitative research (focus groups)  Quantitative concept screen ranking Business Proposition Development:  New product design guide  Technical/engineering feasibility  Develop rough prototype  Pricing/volume/profitability analysis  Intellectual property reviews  Launch timeline - first pass Major Activities: Develop capital authorization request:  Production sourcing plan  Production tooling plan  Finalize launch timeline  Profitability/capital financial plan Pre-production/pilot builds/protection:  Off-tool prototype confirmation  Advanced manufacturing design/scale-up  Intellectual property legal filings Consumer/In -home use testing  Changes to product/positioning as needed Develop marketing plan/budgets:  Packaging structure plan  Communications plans (TV/Print/Online)  Distribution strategy  Pricing/profitability plans & budgets  Final launch timeline – start ship Major Activities: Final sales/customer presentations:  Customer planogram approvals  Confirm year one volumes Production start/warehouse builds:  First piece inspections Year one production requirements Implement pricing – customer service Implement communication plans:  Media placement  Press releases/events  Packaging grapics  Trade marketing collateral Tollgates Note: This process is designed for brand new concepts or risky functional technologies not previously commercialized by a company. Other simpler less “risky” concepts might require less activities or time as shown above. 3
  4. 4. 4 New Product Case: ProFinish Premium Irons Business Situation/Problem:  Current premium product was losing sales and distribution  Product 20+ years old – design/performance lapped by competition  Historical iron consumer purchase and usage behavior not well understood  Company failed on four other occasions to develop a more competitive product Phase I: Opportunity Identification Major Milestones  Redefined consumer behavior segmentation strategy – total iron market  Identified premium ironing purchase/usage behaviors – appearance driven ironers  Completed product design and specifications – including product feature offerings  Developed industrial designs & product line offering by geographic region  Determined business proposition volume/pricing/profitability and timing Phase II: Design/Development Major Milestones  Capital authorization request ($3MM) approved by B&D board  Built off-tool prototype – consumer in home use test verified performance  Confirmed product design for cost effective manufacturing – cost targets met  Set final pricing and discount structures – retail and customer  Developed marketing communications plans and budgets Phase III: Commercialization/Launch Major Milestones  Secured customer planogram approvals and volume commitments  Built up warehouse inventory to meet volume requirements prior to launch  Confirmed product met original design specifications  Launch materials available on time to sales force and media agencies Program Results:  First premium iron to launch comfort grips feature – addressing unmet user need  21 utility and design patents  Voted a Consumer Digest “Best Buy” in 1998  Achieved 100% distribution at mass merchants and specialty retailers  Became a $30MM business from zero – paid out capital investment Maximum Steam Performance:Maximum Steam Performance: No other premium iron steams more Superior Non-Stick Glide:Superior Non-Stick Glide: New space age Soleplate Coatings Comfortably Designed:Comfortably Designed: Comfort Grips & Unique Control Design (New Category Feature)
  5. 5. 5 New Product Case: DuPont Car Care Products Business Situation/Problem:  Tenneco: $6B+ OEM/Aftermarket parts supplier – B2B business model  Current served markets: shocks & struts and emission control - #1 share rank  However, served markets declining due to low service maintenance replacement rates  Core business sales/profitability declining; brand equity poor (e.g. Monroe shocks)  No consistent product development program or process existed prior to 2003 Phase I: Opportunity Identification Major Milestones  DuPont looking for a licensee to re-enter car care market to bolster auto paint line  Tenneco identified new car care “best in class” formulations in a water based format  Identified key heavy user purchase/usage behaviors – appearance driven innovators  Discovered appearance innovator need – “car’s appearance is never how I want it”  Uncovered new Wear Shield friction modifier technologies for performance products  Developed product line design and specifications  Determined business proposition volume/pricing/profitability and timing Phase II: Design/Development Major Milestones  Identified contract manufacturing production sources  Built prototypes – consumer in home use test verified performance vs. competition  Confirmed product design for cost effectiveness manufacturing – cost targets met  Set final pricing and discount structures – retail and consumer  Developed marketing communications plans and budgets Phase III: Commercialization/Launch Major Milestones  Secured customer planogram approvals and volume commitments  Built up warehouse inventory to meet volume requirements prior to launch  Confirmed product met original design specifications  Launch materials available on time to sales force and media agencies Program Results:  Secured distribution in mass merchants, home centers & auto stores (15,000+ outlets)  Introduced Tenneco to Wal-Mart, Lowe’s, Target & Auto Zone as new customers  Introduced 17 new products generating over $5.0MM in sales  Spray Wax, Tire Shine and Wheel Cleaner were top 10 best sellers in NPD rankings Marketing programs included access to DuPont Motorsports with 4 time NASCAR Cup winner – Jeff Gordon
  6. 6. 5 New Product Case: DuPont Car Care Products Business Situation/Problem:  Tenneco: $6B+ OEM/Aftermarket parts supplier – B2B business model  Current served markets: shocks & struts and emission control - #1 share rank  However, served markets declining due to low service maintenance replacement rates  Core business sales/profitability declining; brand equity poor (e.g. Monroe shocks)  No consistent product development program or process existed prior to 2003 Phase I: Opportunity Identification Major Milestones  DuPont looking for a licensee to re-enter car care market to bolster auto paint line  Tenneco identified new car care “best in class” formulations in a water based format  Identified key heavy user purchase/usage behaviors – appearance driven innovators  Discovered appearance innovator need – “car’s appearance is never how I want it”  Uncovered new Wear Shield friction modifier technologies for performance products  Developed product line design and specifications  Determined business proposition volume/pricing/profitability and timing Phase II: Design/Development Major Milestones  Identified contract manufacturing production sources  Built prototypes – consumer in home use test verified performance vs. competition  Confirmed product design for cost effectiveness manufacturing – cost targets met  Set final pricing and discount structures – retail and consumer  Developed marketing communications plans and budgets Phase III: Commercialization/Launch Major Milestones  Secured customer planogram approvals and volume commitments  Built up warehouse inventory to meet volume requirements prior to launch  Confirmed product met original design specifications  Launch materials available on time to sales force and media agencies Program Results:  Secured distribution in mass merchants, home centers & auto stores (15,000+ outlets)  Introduced Tenneco to Wal-Mart, Lowe’s, Target & Auto Zone as new customers  Introduced 17 new products generating over $5.0MM in sales  Spray Wax, Tire Shine and Wheel Cleaner were top 10 best sellers in NPD rankings Marketing programs included access to DuPont Motorsports with 4 time NASCAR Cup winner – Jeff Gordon

×