Food and drinks manufacturers must be equipped to quickly respond to market change.
Consumer product markets are characterized by constant market change, and the food and drinks sector is no different. Manufacturers are turning to new and improved products to help them grow market share, and these products frequently come out of a changing market demand and consumer preference. However only a small number of new consumer products succeed in the market; failure rates are sometimes upward of 85%1.
To stay relevant and be successful – and in some cases to survive – companies must be equipped to quickly create and shift products and product portfolios. It is not uncommon to see the failure of an iconic brand opening up a new innovation opportunity for other companies—at least, for those that can innovate quickly—to take their place.
Innovation Strategy Must Adapt to Address Changing Markets
Companies looking to drive growth through innovation must understand and effectively manage all stages of the innovation lifecycle – innovation planning, idea and concept development, product development, and optimization of the portfolio of products. Doing so will empower them to focus resources on the highest-value brand innovations and meet new customer needs, identify the right products to bring to market and bring them to market at an optimal pace.
Essential to supporting adaptive and fast-paced innovation are collaboration and visibility. Manufacturers must have a system that can facilitate collaboration on innovation goals and strategies, while allowing executive management and innovation leaders the visibility to analyze the impact planned projects will have on revenues, market share, and resources – enabling quick, powerful decision-making. By translating annual strategy into “living” innovation plans, consumer goods firms can make and communicate updates as market or business changes happen, and quickly adapt innovation. The result is more agile plans that mirror current market conditions, enabling companies to pursue their long-term growth objectives with greater confidence.