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@dupont.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 – TYVEK® PIONEER HI-BRED 1967 – NOMEX® 1972 – ELECTRONICS 1949 – ENGINEERING EXPANSION 2003 – SOLAE JOINT POLYMERS 1935 – NYLON® VENTURE 1936 – LUCITE® 1800 1850 1900 1950 2000 2050
1986 – CORIAN® 2011 – ACQUIRES DANISCO 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® SORONA BIO BASED PERFORMANCE COATINGS DYNAMITE ® 1804 – FIRST 1928 – CHEMICAL 1965 – KEVLAR 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