T. Schultz T. Schultz Polishing Nuggets into Gemstones, or Focused Innovation Application Methodologies for Consumer Goods Successes Thomas Schultz, Ph.D. Vice President, Product Strategy HCI Direct, Inc. 215-494-2900 ext 202 [email protected]3 Case Studies of Successful Competition in the FMCG world
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T. SchultzT. Schultz
Polishing Nuggets into Gemstones, or Focused Innovation Application Methodologies for
► Know the customer: Why do they buy what they do? Why buy mine?
Use of Consumer Hedonics= consumer buys my product.
Unless it is a radically new & unknown product idea, your iteration must outperform.
+
-Product Physical & Emotional Attributes
= Target
= To Win!
►What are the winning metrics: Cost of technology entry. Product Power. Product sibling lifetimes.
$
time
Cost of Entry
Product Power =New Sales $
# New Products
Product Siblings = Products in Portfolio with high Consumer Hedonic values
2% NOS
T. Schultz
Case Study 1: reflect.com, Mass Customization
Consumer Need: People want to personalize their Personal Care Products.
Solution: Let the consumer define their emotional and physical wants and provide a product that “hits” on these Hedonic attributes.
Innovation?: 1. Use web-based interface to allow the selection inputs
2. Develop a supply chain that will make customized products with 2500 variations.
Done: Decision trees, Deep psychographic models on buying needs (~10 US Patents): Company total: 25 employees; partners: 75.
Done: Small batch, short-term fill cycles, proprietary product formulation & processing technologies (~ 15 US patents); partnership with external sub-contractor
Metrics: $ Sales were miserable; notoriety in the web-world and the innovation sectors were great!
Solution: Went back to the consumer and asked, Why no purchase?
Answer: Emotional triggers were high, but could not sample
T. Schultz
Case Study 1: reflect.com, Mass Customization
What did we learn?
• High emotional products need to be sampled
Put a store in place on Union Square (SF) Sales $$$$$
• Making the decisions takes too much physical time as opposed to mental time.
Reduced the # questions, placed Model against another product line where the consumer base would benefit
Cost of entry > > 2% NOS
Product Power < 0.1
Product Siblings were infinite, and hence did not look like a family
T. Schultz
Case Study 2: DuPont- Repurposing technologies to higher value streams
T. Schultz
Consumer Need: DuPont wanted to move into Personal Care Products.
Solution: Match technologies to address consumer needs
Innovation?: 1. Use Consumer Hedonic toolset to identify needs (i.e. performance attributes
2. Implement FMCG product development methods
Done: Need for a skin car solution: materials identified
Done: Use of subcontractor model, brought team far upstream to consumer insights unmet product needs performance attribute maps useage.