Bring Innovative Products to Market with Speed and Success with Consumer Goods Innovation
Consumer goods organizations understand how critical innovation is to realizing sustainable growth, profitability and competitive differentiation yet, even the leaders struggle with effectively delivering on innovation and new product development (NPD) initiatives. A recent analysis in the IRI New Product Pacesetters report points out some startling trends in Consumer Goods innovation success and growth:
- Successful product launches are a key success indicator yet a large majority of products fail to earn even $7.5 million in their first year – with less than 3% exceeding the highly-successful benchmark of $50 million.
- Only 50% of new products meet profit objectives.
- Average year-one sales of new consumer goods brands have been on a steady decline for several years.
Consumer goods companies often struggle to launch truly innovative products that move beyond line extensions – a key necessity for building competitive differentiation. In a study conducted together with Consumer Goods Technology (CGT), Sopheon looked at the major challenges to product launch success and found that only 18% of new products are considered highly innovative, with nearly 60% of CG executives pinpointing this as the leading contributor to product launch failure. In a similar report, “CPG Innovation & Growth", an astounding 71% of respondents said that the largest cause of new product failures can be attributed to consumers finding no new or unique value proposition.
Executives are increasingly turning to innovation performance to invest in the right portfolio of products that will meet changing consumer needs, build perceived value for consumers and grow brands across the organization. However, innovation comes with a number of challenges that are commonly echoed across consumer goods firms:
- “We have a low success rate of new products that meet our defined profit objectives.”
- “We lack enough high-value projects in our pipeline; we’re chasing the elusive ‘fewer, bigger, better’.”
- “We struggle to move beyond line extensions; we have very few truly innovative products which results in a low level of competitive differentiation.”
- “We find it difficult to determine the optimal portfolio of products that we need to invest in to help us keep strategy and initiatives aligned and better meet strategic business goals”
Sopheon’s Accolade solution supports the entire innovation management and new product development lifecycle for consumer goods firms – from strategic planning and ideation through execution and portfolio optimization.
Sopheon’s deep industry knowledge is supporting many consumer goods companies in improving their innovation performance by helping them to bring products to market with speed and success. For seven years in a row, CGT readers have named Sopheon among the top 10 technology companies providing solutions for new product development and introduction, and half of the ‘Top 10 Non-Food Brands’ on the 2012 IRI Pacesetter list are Sopheon customers.
Leading innovative consumer goods companies like P&G, Electrolux, Philips, PepsiCo, and Gold N’ Plump rely on Sopheon’s Accolade solution to:
- Optimize the portfolio of products to improve innovation investment decision-making and focus on moving the highest-value projects through development to maximize profitability.
- Accelerate time-to-market and improve the ability to meet key product launch dates.
- Simplify and automate gated processes for new product development support.
- Increase the value of the innovation pipeline by focusing on bigger, better ideas.
- Enable effective collaboration across cross-functional innovation teams.
- Improve visibility on the front end of innovation to leverage key learnings and consumer research, reducing duplication of effort.
What Customers Say
“One of Philips’ central business strategies is to drive profitable growth through meaningful innovation… Accolade’s new features have given us the ability to model projects in a very dynamic manner and alter them quickly in response to shifts in market opportunities and needs…. We believe that these capabilities will help shorten our Idea to Market processes.”