We know that proper testing is a vital part of product innovation. But data and analysis can only go so far to help weed out poor products before they hit the shelves. In other words, our first two steps – better collaboration and production – will only work with a ‘fail fast’ approach to product testing. And that leads us to our final step to getting new product development (NPD) right every time: iteration.
To start with, huge labour and operational costs can be saved the earlier retailers and suppliers can make a decision about a product. By testing at the concept stage, both parties can be reassured that a product can be delivered at the best cost and answer a genuine need with customers. But it is this stage that needs more investment.
Investing more money into testing a product earlier-on can deliver much greater savings further down the line, helping to avoid many of the development mistakes covered in our last blog. Remember the manufacturer whose production line slowed to less than 50% in the pursuit of an “imperfect” looking cake?
Furthermore, as well as having the potential to severely restrict the production process, simple changes such as new packaging or adding a single ingredient often don’t add any value to the customer. And it is this approach that needs to change.
Overall, by putting the needs of the customer first and trialling products early-on to find any complexities, any creases can be ironed out – or better still, products that simply won’t work will be stopped.
That’s not to say that retailers and suppliers should limit the number of products they choose to look at from the outset. After all, both will need to ensure that enough ideas are in development so one or two will make it to the shelves and give customers a reason to get excited about their shop. But by failing fast and doing it quickly, unworkable concepts won’t even make it to the kitchen, let alone reach (and probably frustrate) customers.
Retailers and suppliers shouldn’t be concerned if only a small fraction of products end up in store. With a relationship built on trust, combined with an understanding of what consumers really want and a detailed analysis of a production process – only the real star product will make it to the end of the line. And that’s good for retailers, suppliers and ultimately – the customer.
Read our previous blogs on how retailers and suppliers can collaborate more closely and analyse the production process properly. Click here to download Newton’s report ‘Creating Passionate Shoppers: The Science of Product Development’.
This article originally featured on Linkedin
