CPG Innovation: The need for repeatable innovation processes
While developing and bringing new products to market will remain the lifeblood of any CPG company, unfortunately, leading players in this industry report the majority of their time and resources are spent on developing incremental changes to existing offerings, rather than on delivering the truly innovative products which may encourage consumers to part with their money. According to an IBM survey1, respondents from the CPG industry reported 56% of their efforts entailed improvements to current products and services, such as flavor or packaging changes and line extensions, while only a staggering 13% of their efforts were dedicated to fundamentally new offerings.
In an industry faced with hyper-competition for mind, wallet (with price of an item now ranking as the most important buying criteria for 87% of consumers), and shelf space to due to technology advancements, deregulation, and globalization, shorter product life cycles due to rapidly changing customer demands, and increased pressure from investors for both top- and bottom-line growth, the need for a structured, repeatable, and sustainable innovation process across the CPG industry is stronger than ever. In fact, a recent Nielsen study notes that CPG companies with rigid innovation average 130% more new product revenue than companies with loose or ad-hoc innovation processes.
In response to these increasing challenges, leading CPG companies are leveraging and investing in the innovation tools that help speed innovation and fuel product pipelines with competitively differentiated products. These customers benefit from:
- Better response to consumer trends and untapped market needs
- Improved design of existing products for optimal performance and cost
- Increased recognition of opportunities for disruptive innovation
- The ability to evaluate strength of competitive advantage and intellectual property
- Lower product development costs
- Finding replacements for ingredients, materials, or components
- Reduced costly errors and late-in-process changes
Learn how leading consumer products manufacturers, including 3M, Charbroil, Hershey, Legett & Platt, Nestle, Unilver, Whirlpool and more, are leveraging Invention Machine Goldfire to bring repeatability and sustainability to their innovation process, designing better products that foster people, planet and profit in this brief 2-page Goldfire for Consumer Goods Data Sheet.
1 – IBM, Enabling Multifaceted Innovation