2. Innovation’s Objectives
• Support our common goal to “Be the Best Consumer
Products company in the Automotive Aftermarket “
– Identify new products, packages, or service opportunities that
are driven by customer & consumer needs and will generate
incremental revenue and profit for the company.
– Develop, design, test and make ready for commercialization
new products or services that will address those opportunities.
– Be actively involved in the strategic direction of industry
specifications in order to maintain margins of current/new
products while sustaining competitive advantage.
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3. New Product Development Process
Ideation Evaluation Development Commercialization Launch
Screen New Finalize Labels/Cases
Screen Concepts Assign Team Develop Launch
Technologies
Plan
Identify Consumer Test Concepts Develop Timeline Arrange Logistics
Needs w/Target Full-Scale
Finalize Formulation Consumer/Market Production
Develop Platforms Testing
Assess Market
Ideate Potential Validate Attributes Sell-In
Develop Marketing [Lubricants]
Develop Product Strategy
Assess Technical Finalize Packaging
Claims
Feasibility Execute
Determine Formulation Testing Finalize Financial
Projections Marketing
Consumer Targets Estimate COGS Strategy
Recommend Financial Projection
Branding Preliminary
Pricing
Develop Concepts
Sell-In
[Chemicals]
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4. Keys to Success
• Team oriented individuals who possess strong strategic,
distilling, problem identification/solution and project
management attributes who also have a tolerance for
ambiguity
• Freedom to explore all types of ideas no matter how far off
base they may seem
• Unadulterated access to consumers
• Access to the trade
• Support from other functional groups, (Product Management,
SGS, Brands, Supply Chain, etc.)
• Clearly defined, measurable scorecards
• Permission to fail…within reason
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5. Types of “New” Products
New-to-the-Brand/Line Extensions
e.g. PZL Used Oil-Sucking Bugs, QS New Vehicle Oil, Black Magic Car Care
Industry-Mandated Upgrades
INNOVATIONS e.g. GF 3, GF-4 (Motor Oil Only)
Focus ocus
T MGMT
BRAND
Product Claims-Driven Reformulation
Influence QS Hi-Rev, PZL Ultimate, QS Conventional, Slick 50 Pour and Drive
e.g.
Product Repositioning/
Cost-Driven Product Improvements
e.g. QS HME Reformulation, Outlaw Repackaging
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6. Key Factors in New Product Profitability
Superior product
– Quality, value, meeting needs
Quality marketing actions Insights’ Role:
– Market assessments, customer tests, launch
Solid up-front homework
– Idea screening, business case, market research • Infuse a consumer
Attractive markets centric culture
Sharp and early product definition
Properly planned and resourced launch • Identify key
Synergy with other products market
Low-risk for customers opportunities
Dedicated, cross-functional team approach
Familiar, known areas
– Markets, technologies, processes • Make smart
High quality of technical execution decisions; increase
Non-product advantages success % rate
– Sales force, customer service
Innovativeness of product concept
Source: APQC
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8. Concept Screening
Objectives
• Integrate consumer insights into the concept
development process
Metrics
• Prioritize product ideas Purchase Intent
• Consistent metrics across categories
• ‘Richness’ – Not just an up/down score Value
Methodology Likeability
• Online interviewing from National Panel
Uniqueness
• Quasi-monadic design
• All concepts branded and priced Believability
• Concept visuals and statements
• Creating internal database Quantity (trial)
– Screen existing and competitive product for
benchmarks Frequency
• Ability to deep-dive for target consumers Need Fulfillment
To Date
• Continual refinement and learning
• 162 products in data base
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9. Product Selection Process
What are the unmet consumer Consumer Insight to drive Platform
needs? Development & Product Ideation
How do these products align with Brand Strategy
the core brand strategies?
Did consumers like the products? Consumer Feedback
Are these products profitable? Financial/Product
Can we make them? Viability
Launch
Execute the best ideas on the table!
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10. Thinking Outside the Box
• Pursue paradigm shifting innovations
– Go where consumers are…develop new channels
– Create customer value and consumer loyalty
– Change the selling paradigm
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