What’s the big idea?
That’s the question we always ask our customers, be they well-known brands or emerging brands, at the outset of each ideation workshop we host, be it for a new product or new business model they want to launch (or both). And the good news is – the brands almost always have big ideas! There is no shortage of big ideas! The problem is, as in everything in life and business, execution.
In fact, according to Harvard Business School professor Clayton Christensen, each year more than 30,000 new consumer products are launched and 80% of them fail. Alas, it’s not that high in every category. A study by the Product Development and Management Association (PDMA) found failure rates varied among industries, and we saw failures in health care down around 35% and 49% for consumer packaged goods. But still, there is room for improvement, and there’s little doubt – launching a new product is pretty hard and, in many cases, slower than generally desired.
Reasons for failure vary dramatically by industry and by product. One simple reason that gets in everyone’s way can be chalked up to routine. We, humans, are all creatures of habit. The consultant Jack Trout has found in consumer studies, that American families, on average, repeatedly buy the same 150 items month after month, which constitutes as much as 85% of their household needs. But, the reasons for failure can also be much more complicated than routine. Here are other reasons product introductions fail:
- Market research is skewed by the wrong questions or rendered useless by failure to view results objectively.
- The product is revolutionary, but there’s no market for it.
- The product defines a new category and requires substantial consumer education—but doesn’t get it.
- The consumer can’t quickly grasp the benefits of and how to use a product.
- The product is priced too high (to warrant the purchase) or too low (to be perceived as valuable).
- … and the list goes on.
So why even try? According to a Nielsen study called “The Why Behind the Try,” 63% of those polled said they like when manufacturers offer new products. And, in our business, where we build value-added packaging for the world’s biggest brands, we find that innovation is constantly right at the top of the corporate priority list. So it’s no wonder. But, what’s the trick to coming out on the success side of a product launch? We believe starting with the right partners with the right formula for innovation is the secret recipe.
Radius Innovation & Development and sister company Jabil Packaging Solutions offer an integrated “insight to commercialization” model that digitally links the ideation, research, strategy development, design, quick turn prototyping with world-class, global manufacturing. Using our combined know-how, data and scale-up ability we help customers transform traditional packaging models into new user fulfillment systems, giving our customers the power to move with speed and thrive in a rapidly changing landscape, delivering new and accretive business models for the benefit of shareholders/stakeholders.
In market segments including Food & Beverage, Consumer Packaged Goods, Consumer Health and Industrial markets, innovation is table stakes. The competition is doing it… and if brands expect to stay on top, they need to do it too. The “Learn, Select, Transport, Use” buying model is shifting from the grocery store shelf to the online web page and from the brick and mortar store to the mobile phone. Aligning to dynamic trends and market shifts – and truly understanding how and why those shifts are impacting consumer buying choices and purchasing patterns — is as important as throwing millions at advertising. Some (like us) might argue – it’s infinitely more important. After all, no amount of money will hide a fatal design flaw or a usability issue – especially given the power of social media to share the bad news.
This Radius & Jabil Packaging Solutions is unique in its ability to offer world-class innovation and product development consulting as part of its end-to-end packaging solution. Design right from inception ensures not only diminished cost and market speed, it dramatically increases the prospect of market acceptance and ROIC.
What’s the big idea? Yours! But, only when it’s executed FAST and right from the start.