IMBEDDING THE VOICE OF THE CUSTOMER IN NEW PRODUCT DEVELOPMENT. Hal Carper Tyson Foods June 21, 2006
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1 IMBEDDING THE VOICE OF THE CUSTOMER IN NEW PRODUCT DEVELOPMENT Hal Carper Tyson Foods June 21, 2006
2 World Class Development Processes Are Disciplined, Yet Flexible, With Clearly Defined Stages and Gates Idea Generation Stages Feasibility Analysis Plan & Design Develop & Test Launch & Produce End of Life Type A Ideas Continuous Ideation Type B Type C Manage Product Lifecycle n=100 Idea Filter n=30 n=15 n=10 n=8 n=? Approve Feasibility Approve Project Gates Approve Launch End of Life Stage Definition: Cross functional teams executing actions to meet pre defined deliverables within a specified timeframe to allow the gatekeepers to make informed go/no go decisions during gate meetings. Gate Definition: Pre scheduled meetings designed to review progress of any new product development project. The primary purpose of gate meetings is to gain the commitment, alignment and active support from cross functional senior leadership. Commitment to a go/no go decision is based on a summary of the deliverables defined in the preceding stage. Source: Deloitte Consulting Group
3 Key Cross Functional Deliverables Should Be Clearly Defined From Idea Generation to Product Obsolescence and May Be Updated Through the Project Lifecycle Executive Process Owner Project Management Teams Strategy Idea Generation Type A Type B Type C Feasibility Analysis Plan & Design Develop & Test Launch & Produce Post Launch Analyses End of Life Idea Filter Approve Feasibility Approve Project Approve Launch End of Life Key Deliverables Key Deliverables Key Deliverables Key Deliverables Key Deliverables Key Deliverables Consumer Analysis Competitive Analysis Brand/Strategy Analysis Idea Submission Forms Idea Proposals Idea Scorecards Source: Deloitte Consulting Group Product Definition Pricing and Target COGS Analysis Formula, Package and Legal Feasibility Preliminary Forecast Preliminary Business Plan Project Plan Creative Brief Concept Test Results Package Design Formula and Package Development Plan Customer Design Review Manufacturing Design Review Updated Business and Project Plan Talent, Media and Advertising Plan Approved Formula and Package Claims and Consumer Testing Results Updated Competitive and Market Analysis Promotional Plan Discontinuance Plan Final Business Case Product Launch Communication Ad Campaign Final Package and Formula Specs Sales Plan Cost Containment Assessment Product Quality Review Complaint Review Project Evaluation Risk Analysis Final Discontinuance Plan Customer Notification Ramp Down Plan Obsolete Inventory Disposition Plan
4 The Gated Process: A Means, Not An End
5 Consumer/Customer Research Activities Vary by Business Structure and the Target Customer: Traditional Retail Warehouse Clubs Foodservice Chains Foodservice Independents Co Packing
6 Seven Stages of New Product Development 1. Idea Generation 2. Prototype Creation 3. Market Testing and Strategy Validation 4. Further Product Development 5. Consumer Validation 6. Production Scale Up 7. Market Introduction
7 Success Across Multiple Opportunities: A Flexible, Scalable Process Match Rigor With the Risk Level and Situation of the Project
8 Across All Tyson Business Units a Common Theme The historical approach to product development is changing We re moving from filling the new product prescription. To developing the cure for a new product need Consumer insights, not the opinion of a few influential business leaders will help lead the way
9 More Sophisticated Consumers with Greater Expectations More consumers define trendy as the use of exotic ingredients, provocative cooking techniques, regional trends, locally produced food and agricultural varieties Cooking shows and cooking featured in film Cooking and dining as entertainment There is an unprecedented emphasis on visual presentation in an effort to make foods look their freshest and healthiest
10 Solid Market Research Provides Consumer Insights Frustrations Needs Unarticulated Needs
11 Where Is Your New Product Idea in its Life Cycle? Fad Trend Commodity
12 Concept Testing: Concept Selection Concept Decision
13 You ve Selected The Concept, NOW WHAT?
14 Do You have Alignment With the Business Strategy?
15 You ve Selected the Concept, Now What? Through appropriate consumer research determine the best combination of Ingredients Determine the Manufacturing Process
16 Tyson Retail NPD In Stage 1, we screen new ideas and identify which ones to explore further In Stage 2, we assess the ideas via consumer input on needs / frustrations leading to concept statements to be tested Subjected to quantitative consumer testing to project the size of the idea Preliminary financial models developed
17 Tyson Retail NPD Stage 3 : Consumer Testing Gauge how well the product performs against the written concept Prototype Evaluation Qualitative Consumer Research Quantitative Consumer Research Product Refinement Rapid Prototyping
18 How did Powered By Tyson Start? Consumer Insights leading to Tyson s POWERING Message and NPD Anthropologists placed in people s homes How do they relate to food in general? Meat and Protein in particular?
19 Consumer Groups Seven clear groups emerged with a focus on four Labor of Love: Food = Caring Pragmatists: Food = Fuel Fun Loving Foodies = Cooking with Friends All About Me = Indulgence
20 Voice of the Customer research in Foodservice Open ended interviews with target customer segment Customers rate requirements Responses are consolidated and prioritized NPD direction to the R&D Team
21 Voice of the Customer Benefits Can identify underlying drivers of customer satisfaction Clearer direction Narrowing project scope Meaningful deliverables
22 Voice of the Customer Risks Improperly scoped VOC customers and interview questions Concept / Features and Benefits not clear Misguided analysis Product Implications that miss the mark Does not identify unarticulated needs
23 How to overcome some of the inherent risks in Voice Of the Customer research? Research and learn beyond first receiver customers Strengthen the link between customer needs and R&D resources through direct VOC interaction Have R&D participate front side in VOC activities Gain R&D Relevant market insight
24 A consistent dedication to Voice of the Customer will lead to better understanding and more effective New Product Development Stated need Unarticulated need Frustration
25 Our Customers don t buy our products
26 Our Customers don t buy our products They buy what our products will do for them!
27 What Does Success Look Like? Consumer Insights Turned into a creative reality (A Product!) That can be manufactured efficiently Sold at an acceptable profit Managed effectively through the Product Lifecycle through consumer guidance with cost optimization and line extensions
28 Embedding the Voice of the Consumer in NPD It ain t what you don t know that worries me
29 Embedding the Voice of the Consumer in NPD It ain t what you don t know that worries me It s what you know that ain t so Mark Twain
30 Don t Forget to Use : Informed Intuition!
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