1. New Product & Service Development Final Project October 30, 2010

2. 2 Screens and gates are a critical part of the NPD process

3. 3 Gate-keepers need information they can rely on Unbiased –from someone not at risk of falling in love with idea Comprehensive –total market view vs. comparing to self Consistent –guarantee criteria are not “adjusted” from gate to gate

4. 4 Some of the inputs for applying gate criteria are difficult to obtain from internal sources Performance vs. internal criteria –Strategic fit Performance vs. competition –Will the proposition succeed at differentiating itself in market? –Will it be seen as having an advantage over similar products? Performance vs. volumetric objectives –Will the initiative generate enough volume to sustain distribution? –Will it recoup the investment? –Will it generate incremental sales?

5. 5 Ideation: Cast a broad net

6. 6 Accelerate promising ideas and weed out losers Funnel starts broad and narrows down quickly Appeal Find a MotivatorAccelerate Abandon or Rework Find a Hook Differentiation LOW HIGH

7. 7 Expansion and Surface Evaluation: Separate big ideas from small

8. 8 Prioritize Performance vs. competitive set –Purchase interest –Uniqueness –Liking –Value –Frequency and quantity of consumption High-level sales expectations +

9. 9 Detailed Evaluation: Make big ideas bigger

10. 10 Improve the ideas that already have potential to win Optimize –Consumer adoption process: Stand out among competition Clearly communicate the message Drive interest by addressing a need or want better than other products do Avoid barriers at the point of purchase Delight – exceed expectations Assess concept-product fit early in the NPD process Set appropriate volumetric expectations

11. 11 Develop, test, deploy

12. 12 Launch: Presentation is essential Execute with excellence –Continuous launch tracking –Course-correct as necessary

13. 13 PLR: Don’t tell fish tales – get the story right

14. 14 PLR: Validate and learn Plan vs. execution Sales expectations vs. actual Lessons learned Total system accuracy

15. 15 Total system accuracy Idea Concept Planned proposition & supportSales forecast Actual salesActual proposition and support Was Idea Screen predictive of concept performance? Was Surface Evaluation predictive of later-stage performance? Was the forecast accurate? Was the launch executed with excellence?

16. Thank you! Comments?