Stage Gate

Writing a New Product Concept (7)

(see chart) *Target Market *Consumer Need Insight Statement Description Benefit RTBs Price and Location *The blue elements will be included in your final concept statement. The orange elements should be defined up-front to give you greater focus

Charter - Supporting Rational (3)

1. Competitive Strategy: Why does it make sense with what we are seeing in the marketplace? 2. Brand Strategy: Does it align with the current brand positioning? (Or does it align with where we want the brand positioning to go?) 3. Fit to Mission/Values: Does this align with our strengths? (Or does it align with where we want to create strengths?)

Briefs - 2 types

1. Product (r&d, packaging r&d) 2. Creative (event, packaging design, advertising, website, pr, social, tradeshows) Briefs are the game plan, they help align people

Charter - Proposition (3)

1. Target Consumer/Customer: Who are you targeting? What are they using now? What motivates them? Get as specific as you can! 2. Point of Difference: How are you different vs what the target market is using now? 3. Unique Appeal to Customers: What is the core benefit you are offering? Is there an insight?

Making a better breif

1. be concise, make it interesting 2. define one single objective 3. avoid fuzzy logic 4. WIIFM - know key benefit to consumers 5. Too prescriptive

New Product Concept

A new product concept is a clear, concise statement that effectively communicates an idea to the target market.

1 - Scoping

A quick and inexpensive assessment of the technical merits of the project and its market prospects. Quick, inexpensive preliminary investigation. Largely desk research. Begins to give you an idea of the "size of the prize," consumer interest, internal capabilities prelim market assesment, prelim technical assesment, prelim financial and business assesment Product Concepts can be a large part of this step!

Discovery / Idea Generation

Activities designed to discover opportunities and to generate new product ideas.

Forecast sales for new products

And finally, by gathering a solid understanding of the desirabilty of our concept, we hope to gain greater confidence in the accuracy of our sales forecasts for the product once it launches. If we learn that only 1 in 50 women are interested in our blow dryer, this may temper our sales forecast expectations

Final Gate

Approval of Marketing Spend Approval of Positioning Approval of Media Plan

Gate 4 - Go to test

Approve Graphics Approve Latest P&L Continue to Approve CAPX Approve Timelines

Charter - Technical Feasability

Are they making/doing something similar now? If not, do you think they will have the capabilities? Do they need to hire a partner/co-manufacturer now? A new specialty team? Production Feasibility Supply Chain/Outreach Feasibility

Creative Brief Components Expanded

Business Objective Marketing Objective Target Market → Who are we targeting with marketing messaging? Key Benefit → How do we clearly communicate the benefit (short and sweet!)? Challenges → What hurdles do we see? Competition? Awareness? Current brand perception? RTBs Mandatory Elements → What should always be included in communications? Message Hierarchy → Rate the most important points: Brand, Sub-Brand, Benefits Timing/Schedule Budget

Components of a product brief (11)

Business Objective Marketing Objective Deliverable Marketing Insight Key Benefit RTBs Distribution Channel Mandatories Timing/Schedule Budget Target Cost

Creative Brief Components (10)

Business Objective Marketing Objective Target Market Key Benefit Challenges RTBs Mandatory Elements Message Hierarchy Timing/Schedule Budget

Product Brief Components Expanded

Business Objective → What is the company trying to do? (Objective) Marketing Objective → How is Marketing trying to address it? (Goal) Deliverable → Chartered Initiative Marketing Insight → What does the consumer want/need that we can solve? Benefit → What is our solution? RTBs → What will make it stand-out against competition? Distribution Channel → Where/How will it be sold? Mandatories/Scope → What does it have to do/be? What isn't it? Timing/Schedule → What is the timeline with key deliverables? Budget → How much can we spend on development? Target Cost → How will we make money?

Communication Optimization

By understanding the elements of the concept that communicate most-effectively to our consumers on paper, we can then translate these elements into effective communication tactics at launch. For example - when we learned that 35% faster drying claim was critical to believability, we prioritized this message on the side of our packaging and in television commercials.

Gate 1 - Idea Screen

Company Priorities Do we have people to put on this? Do we have money to put towards this? Does the implication make sense? Does the idea merit any work? Is this an opportunity for new sales or to defend current? Innovation or Base?

Concept Writing = Iterative

Continuous improvement and iteration are critical for concept success Most concepts are iterated upwards of 20 times before they are shown to consumers and 60+ times before considered final Use your resources - the more eyes the better!

Stage 0 - Discovery / Idea Generation

Define key issues and implications Find sources of opportunity Explore unmet consumer needs Ideate creative opportunities and solutions Concept development

Stage 2 - Business Case

Detailed financial analysis - give R&D strict guidelines Start early prototyping Gather significant customer/ consumer feedback Clearer timeline expectations Preliminary forecast and distribution considerations

Stage 2 - Detailed Investigation

Developing a business case and charter

Gate 2 - 2nd Screen (Screening and Verifying)

Does this idea have legs? Does it align with company strengths? If not, will it "fix" weaknesses? Do we need CAPX? Do we think we can make money? Does the timing make sense?

Starting Your Charter

Essentials like... - code name - desired 1st ship date - program summary - reminds leadership team upfront what objectives are

Charter - Outline Expenses

Expenses of... concept testing product development new graphics website update taste/sensory testing etc.

Stage 5 - Launch

Full commercialization Production Launch Go-to-Market Marketing -Launch -Website -Event Planning -PR -Sample/Demo Plans -Digital & TV Plan -Social Media Plan

Charter - Remaining Steps

Identify deliverables of next stage Assign Team Members Leadership Signs off Continue to Gather more information There is typically a "gate document" that lists what has changed/modified from the last gate

Charter - Scope Creep

In project management refers to changes, continuous or uncontrolled growth in a project's scope, at any point after the project begins. This can occur when the scope of a project is not properly defined, documented, or controlled.

Charter - Program Scope

In scope - what are the major steps you need to figure out (ex: product development, package development) & resources required - What resources do you need to accomplish them? (ex: rd scientist, legal, graphic designer)

Stage 1 - Scoping (screening and verify)

Largely desk research Early concept testing Meetings with cross-functionals to understand hurdles Technical feasibility High level financial assessment High level timeline Market viability - target market, category

Seek Differentiated, Superior Products

Many new product launches are "me too" Tendency to favor simple, inexpensive projects Hard for companies to shift from what has been successful for them or where the expertise in their current structure lies Freelance workers?

How do we use new product concepts? (4)

Prioritize Refine Communication Forecast

Prioritize

Prioritize concepts in our new product pipeline - test concepts versus internal benchmarks or competitive products to help us understand to which of our new product concepts should we dedicate resources.

Charter - outline expected outcome

Product/service description anticipated number of skus its okay to not know - identifying what you need to know is half the battle

Refine

Refining concepts is an important goal in new product concept testing. When we expose consumers to new product concepts, we'll often uncover areas of the concept that are unclear, or undesirable. Concept testing and then refinement help us to make our concepts as strong as possible before entering the marketplace.

Charter-Risk Assessment

Risks, likelihood, impact, mitigation plan

Charter - Financial

Sales, budget, pricing unit sales, gross sales

Charter - Key Milestones

Set dates of stagegates ex: packaging complete, 1st ship

What is a charter?

Single document that tries to encompass a company initiative: - Timing - Resources Needed - Scope/Out of Scope - Early Financials Document should never be public, but can be shared internally for any business group to read. Official "start" to the Stage Gate Process Typically acts as a "contract" where the leadership team has a chance to weigh-in and make changes, but ultimately signs to move the initiative forward.

Multiple Pieces to the Charter

Summary Description Supporting Rationale Customer Proposition Technical Feasibility Program Scope with Resources Needed Pricing Structure Early Financials Risks Milestones Upcoming Deliverables List of Team Members Sign-Offs Be specific and thoughtful!

Stage 3 - Development

Technical Development Work Product Briefs Actual detailed design and development of product Design/Packaging Continual refinement of COGs & P&L Transportation/ Delivery Plans Potential capital expenses/installation for new manufacturing processes, etc In-house Product Testing Rapid Prototypes

Gate 5 - Go to Launch

Test Results Meet Criteria Manufacturing Test Runs Were Successful

Stage 4 - Testing

Usage Testing Line Testing Test Markets Instruction Creation For some companies, sell-in to customers could be "testing"

Gate 3 - Decision to Develop/Go to Development

What are the arenas we'll play in? What are the vehicles? What is the differentiators? What is the staging? What is the economic logic? Are we sure we have a strategy?

Best Practices of new product concept

no industry jargon focused benefits phrased in the target markets voice you cant put everything! consistent tone of voice speak to your target market

Charter - thinking about launch dates

seasonal - what time makes sense to launch? health and wellness season, beer season, promotional timing, camping season, etc.

Charter - Non Financial

volume, point of difference consumer acceptance, sensory approval, Awareness goals, perception changes, consumer complaints, sales ratings,

Charter - Out of Scope

what deliverables, work, and resources are excluded from this program (ex: co-branding, retailer exclusives, non-organic)