Product Launch Practices

Practices in order to identify potential launch pitfalls and highlights of successful launches

1 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates • Now - Strategic Planning Consultant – DuPont Performance Polymers • Past Experience – 14 years – Global Leader for Product Launch at DuPont – Engineering, Operations, Marketing Consulting • Education – Carnegie Mellon University • B.S. Chemical Engineering & Engineering & Meena Shah Public Policy Meena.n.shah@.com – University of Maryland • MBA

• Interesting fact- I live in center city Philadelphia with my husband and two daughters

2 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates DuPont Has Evolved Over Two Centuries

INTEGRATED CHEMICALS SCIENCE

EXPLOSIVES

1999 – ACQUIRES 1966 – ® PIONEER HI-BRED 1967 – ® 1972 – ELECTRONICS 1949 – ENGINEERING EXPANSION 2003 – SOLAE JOINT POLYMERS 1935 – ® VENTURE 1936 – LUCITE® 1800 1850 1900 1950 2000 2050

1986 – CORIAN® 2011 – ACQUIRES 1802 – 1923 – CELLOPHANE® 2012 – ACQUIRES 100% OF E.I. DUPONT 1924 – RAYON® ® SOLAE 1924 – FILMS 1961 – TEDLAR 2000 – 1880 – ® 2013 – COMPLETES SALE OF 1805 – CORE VALUES FIRST BUSINESS BEGINS 1962 – LYCRA® BIO BASED PERFORMANCE COATINGS DYNAMITE ® 1804 – FIRST 1928 – CHEMICAL 1965 – POLYMER BUSINESS AND ANNOUNCES POWDER MILL EXPANSION PLANS TO SEPARATE PERFORMANCE CHEMICALS 1903 – EXPERIMENTAL STATI 1952 – MYLAR® ON 1915 – PLASTICS 1917 – MAKING DYES

The DuPont Oval Logo, DuPont™ and all products denoted with ® or ™ are registered trademarks or trademarks of E. I. du Pont de Nemours 3 and Company or its affiliates. Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denote d with ® or ™ are trademarks or registered trademarks ofCopyright E. I. du Pont de Nemours © 2015 and Company DuPont. or its affiliates All rights reserved 3 Science-Based Innovation Is Driven by Market Needs

Market Innovation Science Insights Investment Choices Insights

• Market Trends & Drivers • Transformational Innovation • Targeted World-Class • Unmet Customer Needs Competencies • Step-Change Innovation • Selected Emerging Sciences through • Portfolio Renewal and Growth • Technology Breakthroughs • Customer Intimacy • Global Innovation Centers • Value Chain Optimization

4 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denote d with ® or ™ are trademarks or registered trademarks ofCopyright E. I. du Pont de Nemours© 2015 and DuPont.Company or its Allaffiliates rights reserved 4 What is a Launch?

“A Launch is novel offering that provides measurable value to customers in a defined market segment

• Novel- If it’s something customers have seen before, it doesn’t require much of a launch effort to explain it. • Measurable value- The greater the measurable customer value, the greater the potential reward… and hence the launch budget. • Defined market segment- Suppliers sometimes develop a new product for a single customer, but this usually doesn’t require much launch effort.

Source: AIM, Dan Adams 5 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates Source: Winning Businesses in Product Development: Critical Success Factors Research- Technology Management - Jul-Aug 1996 Cooper & Kleinschmidt

"Less than 3% of new consumer packaged goods exceed first-year sales of $50 million — considered the benchmark of a highly successful launch," say Joan Schneider and Julie Hall, coauthors of "The New Launch Plan."

Discussion Question- Does this match with your experiences?

Source: http://www.businessinsider.com/biggest-product-failures-in-business-history-2014-7#ixzz3lGh5vqwX 6 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates Discussion- What went wrong?

Source: http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/ http://saleshq.monster.com/news/articles/2655-the-20-worst-product-failures http://www.businessinsider.com/biggest-product-failures-in-business-history-2014-7#ixzz3lGikPVk9 7 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates Key Launch Failure Modes • Shift in Competitive landscape or Market • Strength of Value Proposition • Value Capture/Position/Launch well aligned • Resources inconsistent with Project Desired Outcomes • Strength of IP Strategy and FTO • Consistency of Technology and CTQ's • Realistic/Non-Aggressive Project Plan • Capacity/Demand plans aligned • Strong Supply chain • Aligned Development partners

9 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates How do we overcome those Failure modes? • Developed tools and frameworks to help us assess and potentially avoid failure • Partnered with outside organization who specialize in Launch • Advanced Industrial Marketing for Launch Templates and support in training teams http://b2bproductlaunch.com/

10 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates Common Processes are Key to Alignment & Communication

Contracts JDAs / Alliances / Venture Investments Licensing Joint Ventures Marketing Partnerships

5. 2. 3. 4. 1. Launch & Prototype Customer Value Concept Candidate Validation Ideation & Testing Qualification Evaluation Development (Realization) (Design) (Verify) Creation Discovery (Measure) (Analyze)

(Define)

Lead Users Toll Manufacturers Suppliers Companies Universities Technology Licensing Start-ups Key Resources Government - Leader Contract Research - Cross functional Team DuPont BUs & Functions 11 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates 11 Differentially Execute within the pipeline – Choose a Strategy!

First Mover / Pioneer Fast Follower

Scope - # of launches Increased Number – wide Lower numbers- narrow in a given time

Diligence Move fast Get it right!

Commitment A 1/100 approach A 1/1 approach

More focused on Tends to be more Incentives experimentation vs. focused on completion Completion

Source: McKInsey- “Is Innovation Still worth the Investment”; HBR – “ When First Movers are Rewarded and When they’re Not. 12 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates Tools to identify pitfalls

Launch Diagnostic

Market Opportunity / Fit:

Customer Receptivity:

Competitive Response:

Making Money:

Technical Capability:

Pace of Play:

13 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates Supporting Budget and resources

Source: MAPI Product Launch Budgeting & Tactics- February 2012 14 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates Observations for success in new products launches • Critical early stage work includes many aspects of marketing

Customer Value Strategy Pricing Needs Proposition

• Appropriate resourcing – both budget and people

Launch Project Budgets Management

• Ensuring metrics for “post-launch” tracking – Use what makes sense for the business

15 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates A Glimpse into few recent launches • https://youtu.be/Q_0XGQ20R4g

16 Copyright © 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and all products denoted with ® or ™ are trademarks or registered trademarks of E. I. du Pont de Nemours and Company or its affiliates THANK YOU