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PMPA TECHNICAL CONFERENCE:

MANAGING A NEW PRODUCT LAUNCH
Product Innovation Pyramid


§  Most value added activity
Successful New Product Launch


1.    Know your customer’s behaviors better than they do
2.    Establish best product positioning
3.    Simplify
4.    Be Nimble
5.    Communicate Customer Centric Bene ts
Expand Your Thinking

§  A product is a part of a process


                        BUYER




         BENEFICIARY                   USER
A WOW Product Launch


§  What Goes Well
   1.  The product meets or exceeds needs of the buyer, user
       and bene ciary
   2.  The bene t is well communicated
   3.  Conversion & adoption is smooth and swift
A Weak Product Launch


§  What Goes Wrong
   1.  Needs are not well addressed
   2.  The bene t is not clear
   3.  Resistance & slow adoption
Step 1: Customer’s Behaviors
Customer’s Behaviors

§    Solves a problem previously accepted as normal
§    Eliminates or condenses a step
§    Simpli es ownership
§    Improves performance



              Establish New Standard
Customer Behaviors

§  The buying experience
   §  Order automation/customization
   §  Lead time/ exibility
§  The handling experience
   §  Packaging/labeling
   §  Shipping/delivery
   §  Warehousing solutions
§  Customer Service
   §  Warranty/service/solutions
Blue Focus
Step 2: Product Positioning



       Innovation

    Value Add

Commodity
Product Positioning


§  Commodities
   §  Many providers of like items
   §  Little or no differentiating bene ts
   §  Price centered purchasing behavior


§  Commodities rarely establish sustainable relationships
Product Positioning


§  Value Add
   §  Competing providers of like items
   §  Differentiating bene ts others can easily copy
   §  Cost/bene t purchasing behavior



§  Relationships based on ability to continue to add value
Product Positioning


§  Innovation
   §    New way to solve a problem
   §    Unique supplier
   §    Dif cult to duplicate
   §    Purchasing behavior based on dependency



§  Solutions cement relationships
Take Charge


§  Break out of the victim mindset
   §  You have more ability to in uence a customer than you
       think
      §  Add value
      §  Solve problems
      §  Demonstrate an understanding of the entire
          process
      §  Demonstrate and understanding of your
          customer’s business
Innovation Products


Elite Service                Set a New Standard
Step 3: Simplify
Simplify


§  Case Study: 3M Easel Pad
   §  Well known brand
   §  Industry standard
Simplify


§  Observation
   §  What happens before product is used?
      §  Display area is needed
   §  What happens after the product is used?
      §  Paper is posted, requiring tape or tacks
      §  Tape or tacks damage walls
Simplify


§  Opportunity
   §  Eliminate the need for a stand
   §  Eliminate the need for tape or tacks
Simplify


§  Case Study: 3M Easel Pad
   §  Solution
       §  Product board includes a stand
       §  Post-it paper for af xing to walls
Simplify


§  Case Study: 3M Easel Pad
   §  3x price of standard easel paper
Step 4: Rapidly adjust
Adjust with the Courage to stay
               BOLD
§  Review assumptions
§  Listen to feedback
§  Don’t over-react to initial negatively
   §  Low lead-user rates
§  Focus on entire solution, not only technical aspect
Step 5: Communicate Customer Centric
Benefits
Step 5: Communicate Customer Centric
      Benefits
§     Details of Grapefruit Diets
§     Anyone under a grapefruit diet plan would not hesitate to term it a great fruit diet
       plan for the virtues. A grapefruit diet menu lets you the freedom of eating as much as
       you like to while silently helping to burn fat. So, here are the directions to grapefruit
       diet.
§     Drink 8 glasses of water every day. And how much do you consider a glass would
       contain? A glass should contain 8 oz and by 8 glasses a dietician means that you
       need to drink 64 oz or 2 liters.
§     Eat till you are full without leaving or eliminating anything
§     Don't change the quantity of grapefruit or its juice intake for anything as it is the
       thing that kindles the burning of fat.
§     Cut up on coffee intake and give up eating white vegetables and potatoes. So also
       desserts.
§     Foods fried in butter are okay and you can use that butter too. There is no restriction
       on meat too.
§     Repeat the course in stretches of 12 days with a 2 days break thrown in.
§     Remember to stick to the grapefruit diet plan for at least 2 ½ months for it to show
       credible results.
Step 5: Communicate Customer Centric
Benefits
Your Wow Launch


§  Your product solved the customer’s problems
§  The bene t was communicated in the customer’s
    language
§  Conversion issues were addressed in advance
§  Adoption is swift
Finding time to Innovate & Take Charge

§  Run – Improve – Growtm
   §  Leadership’s most value added
   §  Solve problems your customers don’t believe are
       problems

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PMPA Presentation, Product Innovation

  • 1. PMPA TECHNICAL CONFERENCE: MANAGING A NEW PRODUCT LAUNCH
  • 2.
  • 3. Product Innovation Pyramid §  Most value added activity
  • 4. Successful New Product Launch 1.  Know your customer’s behaviors better than they do 2.  Establish best product positioning 3.  Simplify 4.  Be Nimble 5.  Communicate Customer Centric Bene ts
  • 5. Expand Your Thinking §  A product is a part of a process BUYER BENEFICIARY USER
  • 6. A WOW Product Launch §  What Goes Well 1.  The product meets or exceeds needs of the buyer, user and bene ciary 2.  The bene t is well communicated 3.  Conversion & adoption is smooth and swift
  • 7. A Weak Product Launch §  What Goes Wrong 1.  Needs are not well addressed 2.  The bene t is not clear 3.  Resistance & slow adoption
  • 9. Customer’s Behaviors §  Solves a problem previously accepted as normal §  Eliminates or condenses a step §  Simpli es ownership §  Improves performance Establish New Standard
  • 10. Customer Behaviors §  The buying experience §  Order automation/customization §  Lead time/ exibility §  The handling experience §  Packaging/labeling §  Shipping/delivery §  Warehousing solutions §  Customer Service §  Warranty/service/solutions
  • 12. Step 2: Product Positioning Innovation Value Add Commodity
  • 13. Product Positioning §  Commodities §  Many providers of like items §  Little or no differentiating bene ts §  Price centered purchasing behavior §  Commodities rarely establish sustainable relationships
  • 14. Product Positioning §  Value Add §  Competing providers of like items §  Differentiating bene ts others can easily copy §  Cost/bene t purchasing behavior §  Relationships based on ability to continue to add value
  • 15. Product Positioning §  Innovation §  New way to solve a problem §  Unique supplier §  Dif cult to duplicate §  Purchasing behavior based on dependency §  Solutions cement relationships
  • 16. Take Charge §  Break out of the victim mindset §  You have more ability to in uence a customer than you think §  Add value §  Solve problems §  Demonstrate an understanding of the entire process §  Demonstrate and understanding of your customer’s business
  • 17. Innovation Products Elite Service Set a New Standard
  • 19. Simplify §  Case Study: 3M Easel Pad §  Well known brand §  Industry standard
  • 20. Simplify §  Observation §  What happens before product is used? §  Display area is needed §  What happens after the product is used? §  Paper is posted, requiring tape or tacks §  Tape or tacks damage walls
  • 21. Simplify §  Opportunity §  Eliminate the need for a stand §  Eliminate the need for tape or tacks
  • 22. Simplify §  Case Study: 3M Easel Pad §  Solution §  Product board includes a stand §  Post-it paper for af xing to walls
  • 23. Simplify §  Case Study: 3M Easel Pad §  3x price of standard easel paper
  • 24. Step 4: Rapidly adjust
  • 25. Adjust with the Courage to stay BOLD §  Review assumptions §  Listen to feedback §  Don’t over-react to initial negatively §  Low lead-user rates §  Focus on entire solution, not only technical aspect
  • 26. Step 5: Communicate Customer Centric Benefits
  • 27. Step 5: Communicate Customer Centric Benefits §  Details of Grapefruit Diets §  Anyone under a grapefruit diet plan would not hesitate to term it a great fruit diet plan for the virtues. A grapefruit diet menu lets you the freedom of eating as much as you like to while silently helping to burn fat. So, here are the directions to grapefruit diet. §  Drink 8 glasses of water every day. And how much do you consider a glass would contain? A glass should contain 8 oz and by 8 glasses a dietician means that you need to drink 64 oz or 2 liters. §  Eat till you are full without leaving or eliminating anything §  Don't change the quantity of grapefruit or its juice intake for anything as it is the thing that kindles the burning of fat. §  Cut up on coffee intake and give up eating white vegetables and potatoes. So also desserts. §  Foods fried in butter are okay and you can use that butter too. There is no restriction on meat too. §  Repeat the course in stretches of 12 days with a 2 days break thrown in. §  Remember to stick to the grapefruit diet plan for at least 2 ½ months for it to show credible results.
  • 28. Step 5: Communicate Customer Centric Benefits
  • 29. Your Wow Launch §  Your product solved the customer’s problems §  The bene t was communicated in the customer’s language §  Conversion issues were addressed in advance §  Adoption is swift
  • 30. Finding time to Innovate & Take Charge §  Run – Improve – Growtm §  Leadership’s most value added §  Solve problems your customers don’t believe are problems