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coverage on NPD waste conference presentation
Another issue is the failure rate of new products, which management consultant Jonathan Smith calls ‘NPD madness’. Suppliers’ margins are being squeezed and we have millions of pounds going down the pan in product launches, he says. New product failure rates are still being estimated at eight out of 10, which Smith believes could be much less.
“If you can move the failure figure to five or six out of 10, that would be great” he says, blaming a lack of rigorous practices from idea to packaging to ideation as the reason for
the failure.
Many mid range businesses are not performing well in NPD because there are too many products going through at one time. Each time a product fails, a business is incurring tens of thousand of pounds of loss, he adds, yet tackling the problem isn’t rocket science. “It’s not about stifling creativity, but a return to common sense,” he says.
He believes no NPD project should be passed unless it’s thought through completely, saying no to projects that cannot be done effectively. “Weed the garden and focus on the creativity, with nothing new coming into the system until the focus is on specific priorities.”
“Saying no nicely” means proactively putting ideas forward until all parties have agreed with the project. If you are trying to persuade retailers the ideas are not as good as they are coming up with, bring in the consumers and use them to win your argument, he says. “Most failures are due to some flaw in consumer appeal. It might be a good idea but it was the wrong colour or pack size and didn’t cut any ice with them. A lot of NPD isn’t even seen by consumers. Once the product has been launched, stop, learn and reflect.”
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