Do you have a formal documented strategy for your new product development (NPD)? I often ask this question of senior management at the food businesses in which I consult. There is surprisingly often little affirmation in response irrespective of how large or successful the business might be. Ask these same businesses what their mission statement or corporate values are and they seem to be able to reel them off with greater ease.
It's a classic oversight: becoming so entrenched in the day-to-day churning of recipe redevelopment of current lines that often the bigger picture is overlooked. At the very least, this results in a lack of focus and clarity by the teams implementing the concept-to-launch process with typically a much heavier reliance upon reactive rather than active development.
A further consequence is that without clear strategy, there is little to demonstrate to the rest of the business and customers alike that NPD truly is the lifeblood of that business. The lack of a clearly communicated vision will increasingly become apparent over the longer term through a loss of connection with the target consumer as the competition launches ever more closely targeted products.
So what makes a good strategy? It should be designed to offer direction on the scope of the NPD business activities over the long term. It should aim to achieve an advantage through the allocation of resources and competencies with the ultimate goal being to fulfil the company's commercial expectations.
A thorough understanding of the industry sector, the market within which the business operates and the competition is crucial to success. Make time to map out your NPD strategy and in turn reap the rewards of a more highly motivated team with clear long-term direction.
Angela Mitton is creative product developer at NPD consultancy