David Jago, Director GNPD Consulting Services 05 2005

1. What makes a sustainable winning product? David Jago, Director GNPD Consulting Services05 2005

2. Winning products - introductory comment For every 11 “serious” new concepts, 3 enter the development stage, 1.3 are launched, 1 succeeds “It takes up to two years to tell whether a product will be a long-term success” (allowing time for expected fall-off in sales after the novelty has worn off) - VP Innovation, PepsiCo North America

3. The new product universe

4. What do we mean by new products?

5. Ground rules for winning products • Does it do a better job than what’s currently available? • Is it less expensive than existing products? • Does it provide greater benefits? • Is it easy to use? • Is it readily available?

6. Ground rules for winning products • But rules are there to be broken… • Products that are more expensive can be very successful • Benefits can be perceived rather than actual • Ease of use is not critical to many ready-to-eat foods/RTDs • Distribution is critical, but not every product needs the reach of Coke

7. Before you start... • Have you looked at what’s been tried before, and what you can learn from it? • Need for thorough concept screening Walkers Shots, UK (2003); Sunshine Biscuits’ Cheez-It Gripz and Keebler Chips Deluxe Gripz, USA (2005)

8. Before you start... • Does the product fit the company? • If not, what can you do about it? Seeds of Change and Cocoa Via (Masterfoods); Ensemble (Kellogg)

9. Differentiation • Does it have perceived or actual benefits greater than its competitors? Wrigley’s Extra Thin Ice; Pringles Dippers; Muller Fruit Corner Snack Size (launched as Minis)

10. Key claims/properties • Are the key claims/properties in tune with what consumers need or understand? • And does the package communicate the benefits?

11. In tune with what consumers understand Kellogg’s Rice Krispies Muddles (UK) and MultiGrain (Scandinavia)

12. In tune with consumer needs and desire for “natural” Danone’s Danacol; McNeil’s Benecol

13. In tune with contemporary lifestyles Weetabix Alpen Cereal Bar

14. Geared to the (appropriate) target market Muller Corner Squeezers (2002) and Yogz Squeezems (2004)

15. Is it memorable? • Does it have personality? • Consumers have to understand it and identify with it

16. Personality Innocent Smoothies for Kids

17. Helping consumers identify with it Nestle Rowntree Little Notions low calorie snacks; Magnum 7 Deadly Sins ice creams

18. Where will it go next? • How might it react to changing trends? • How might it be extended to appeal to new groups of consumers (with a consistent message)?

19. Reacting to changing trends Good Humor-Breyers’ CarbSmart, SugarSmart, and HeartSmart ice creams (Unilever), USA

20. Appealing to new groups of consumers Wrigley’s Extra Thin Ice, Extra Mints, Extra Ice gum

21. Does it taste good?

22. Finally, don’t make it just because you can! Yogurt for dogs (Germany), high fibre beer (Japan), banana-flavoured mayonnaise (South Korea)

23. “We must continue to excite and delight consumers, or they’ll move on…”(Chris Lowe, Coca-Cola North America) Winning products

24. www.gnpd.com