New Product Kickoff

April 10, 2023 David J. Krysh ConsultingFor Premium Consumer Brand.

2010 New Product Kickoff“Coming up with a new product idea is easy, the hard part is the getting it through the process.”


Environment …The New Normal Resetting vs Recession

Unemployment projected at 9+% in 2010 Q4 and >5% beyond 2013

Consumer spending will remain low, savings rates rise

- And -Boomers move to

“retirement” in greater numbers

Gen X move into mid 40’sGen Y begin gain purchase

influence and start families


Environment …

Jimmy ChooDoes the Luxury Market need another Lifestyle Brand?

“Jimmy Choo announced plans to introduce a lifestyle brand … taking a business plan conceived during a luxury boom and executing it during a luxury drought.”

“… the boom times are over … luxury marketers today have to find new avenues to growth in the luxury drought they face today.”

Pam Danzinger, Unity MarketingAugust 1, 2009

Impact on Upscale Market

http://www.jimmychoo.com/pws/ProductDetails.ice?ProductID=83892


Environment …Creating sustainable new market

growth Show up where growth is going to happen

– Anticipate and respond to shifts in your current market Iacocca, Chrysler and the mini-van

Invade adjacent markets with new stuff– Can you create sustainable differentiation

“USP” – quality, value, style– Can you match (or beat) standards of

competitionApple and the IPod and IPhone, Sony and Playstation


Process …

The system for management transparency, checks and balance, and project management

The Phase/Gate NPD


Process …

WEIGHT: 30 25 20 10 15 100

Total 2010 2011 2010 2011Profit $ Impact

ResourcesSuccess Chances

Weighted Grand Total

2010 Weighted

Total

2011 Weighted

Total5 - $1million + 5 - $1million + 5 Incremental 5 Nearly Complete 5 Sure Thing

4 4 4 4 4

3 $250K+ 3 $250K+ 3 In profit plan 3 In process 3 50 - 50

2 2 2 2 2

1 - No contribution 1 - No contribution 1 - Loss 1 Resource required 1 - Need luck

Total 2010 2011 Project 2010 2011 Profit Resources Success Total All 2010 2011

1 2 3 Product 1 4 5 3 4 3 390 305 300

2 1 5 Product 2 5 3 3 3 3 360 315 255

3 3 4 Product 3 4 3 3 2 4 335 275 250

4 4 2 Product 4 2 4 4 4 3 325 270 320

5 5 1 Product 5 1 5 5 4 2 325 255 340

Revenue Impact

Rating

Project P lan Decision Grid

Priority Ranking

Decision Matrix to Select and PrioritizeMaking a quantitative decision from qualitative factors


Process … VOC – Voice Of the Consumer


Process …Rodgers Diffusion Curve

Creating a dialog with Early Adopters


Process …Design/Specification/PrototypingCritical to the process of consumer testing,

communicating product concepts and factory specification


Overseas Sourcing …

Constraints• Communication• Time and Planning• Specification clarity• Sample, Sample,

Sample• Hurrying is painful• Find the “right”

factory• Supply chain• Inventory/Cash



Myths• Counterfeiting• Labor “sweatshops”• Quality standards• Sub standard raw

mat’ls• Poor & backwards• Communist &

closed• ….



Time ScheduleAnticipate 18 - 22 weeks from product spec to finished goods

in warehouse(Add min. 4 - 8 weeks of product concept stage and you are at 6

months) FebDesign/Development Qualify Sources/QuotationsSample Development/refinementNegotiate/Place ordersProductionShipment/Reciept of goods

PR

1

Executive Sourcing Project Overview Updated: NewJun Jul AugSep Oct Nov Jan Apr MayDec Mar


Next …• Review brainstorm

concepts– Brand relevance– Adjacent markets or new

growth in existing market– Identify “product

platforms”– Voice of the Consumer and

other “environment” considerations

• Review process issues– Pipeline/Timing– Decision matrix criteria– Prototype design and

development

New Product Kickoff

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