the critical role of sales throughout the new product development process

WHERE’S SALES

IN YOUR NPD

PRCESS?

CHANNELINSTINCTS.COM

The New Product

Development Process

from a Sales & Marketing

roles standpoint.

��Design

Milestone 1 Milestone 2 Milestone 3 Milestone 4 Milestone 5 Milestone 6

Ideation

��Concept Generation

��Implementation

��Audit��Production

Customer Needs

� Market Research

� Competitive Analysis

� Features / Benefits

� SKU Count

� Preliminary Timeline

� Models/rendering

� Focus Groups

� Concept Selection

� Supply Chain

� Quality Plan� Detailed Design

� Verification

� Patents

� Costing

� Project Schedule

� Packaging

� Mfg / QC Plan

� Tooling Estimates

� Communications

Checklist

� Supply Chain

� Machinery / Tool

� First Articles

� Customer Service

� Training

� Sample Books � Pilot Production

Run

� Production

Verification testing

� Sales

Communication

� Launch

� Financial Audit

� Customer Satisfaction

� NPD Process Audit

NEW PRODUCT DEVELOPMENT

PROCESS – MARKETING

Ideation

Identify Customer Needs

� Market Research� Competitive Analysis� Features / Benefits � SKU Count� Preliminary Timeline

� PDR Involvement− Reality Check / Sales Feedback− Retail Landscape

� Co-development Opportunities?� Account Needs

Sales / Account Management

��Marketing / R&D

��


PROCESS – IDEATION / GAP ANALYSIS

� PDR Involvement � Question: Innovative or Derivative Mod. / “Me Too” Product?

− Innovative: Hold over to Design Phase

− “Me Too”: Preliminary Meeting to gauge

interest

� More closely identify Account Needs and Priorities

� Help define merchandising plan


Concept Generation

� Models / Rendering� Focus Groups� Concept Selection� Supply Chain� Quality Plan

Marketing / R&D

��


PROCESS – CONCEPT GENERATION

��


� Detailed Design� Verification� Patents � Costing� Project Schedule

� Formal Meeting with Customer− Customer feedback on product

− Confirm customer interest & intentions (if pricing

can be confirmed, Formalize Commitment)

− Quantify size of opportunity / soft timing

− Potential risks to existing business / swap-outs

or buyback cost

− Pricing Range

� Refine Merchandising Concept� Demand Planning

Design

� Mfg/QC Plan� Tooling Estimates� Communications Checklist� Supply Chain� Packaging

Marketing / R&D

��


PROCESS – CONCEPT GENERATION

��


� Finalize Pricing and ensure Product Profitability

� Formal Commitments from Buyer and Merchandising Vice President / GMM on:

− Dates / Timing of Launch

− Quantities

− Launch Plan / Advertising & Merchandising Plan

− Customer Support if warranted

− Logistics / Operations Communication

� Machinery / Tooling � First Articles� Customer Service� Training� Sample Books

Implementation

��


PROCESS – IMPLEMENTATION

��

Marketing / R&D


� Final Sample to Customer� Reconfirm Commitments� Secure Orders� Field Communications / PK / Sell Sheets

� Pilot Production Run� Production Verification Testing� Sales Communication� Launch

Production

Marketing / R&D

��


PROCESS – PRODUCTION

��


� Flawless In-store Execution � Monitor POS� Communicate Results – both positive and

negative to Account and Division− Develop corrective action plan with marketing

if needed

� Creative Merchandising Ideas

� Financial Audit� Customer Satisfaction� NPD Process AuditAudit

��

Marketing / R&D


PROCESS – AUDIT

��

��

��Design

Ideation

��Concept

Generation

��Implementation

Audit��Production


PROCESS – ACCOUNT MANAGEMENT

� PDR Involvement

− Reality Check /

Sales

− Feedback

− Retail Landscape

� Co-development

Opportunities?

� Customer Needs

� PDR Involvement

� Question: Innovative

or Derivative Mod. /

“Me Too” Product?

− Innovative: Hold

over to Design

Phase

− “Me Too”:

Preliminary

Meeting to gauge

interest

� More closely identify

account need and

priorities

� Help define

merchandising plan

� Formal Meeting with

Customer

− Account feedback

on product

− Confirm Account

interest & intentions

(if pricing can be

confirmed, formalize

commitment)

− Quantify size of

opportunity / soft

timing

− Potential Risks to

existing business /

swap-out or

buyback costs

− Pricing Range

� Refine Merchandising

Concept

� Demand Planning

� Finalize Pricing &

ensure Product

Profitability

� Formal Commitments

from Buyer & MVP on:

− Dates / Timing of

Launch

− Quantities

− Launch Plan /

Advertising &

Merchandising Plan

− Account Support if

warranted

− Logistics/Operations

Communication

� Final Sample to

Customer

� Reconfirm

Commitments

� Secure Orders

� Field

Communications /

PK / Sell Sheets

� Flawless In-store

Execution

� Monitor POS

� Communicate Results

both positive and

negative to customer

and business

− Develop corrective

action plan with

marketing if

needed

� Creative

Merchandising Ideas

Milestone 1 Milestone 2 Milestone 3 Milestone 4 Milestone 5 Milestone 6

10

CHANNELINSTICTS[ Accelerating the path between ideas & actions ]

CHANNELINSTINCTS.COM

Greg Bonsib is a marketing expert and consultant who has worked with sales

and marketing teams at companies such as Newell Rubbermaid, Owens Corning, Zenith

Products, SentrySafe and others to successfully launch new products and programs that

grew both the top and bottom lines.

Greg’s thoughts and insights on marketing can be found at channelinstincts.com. He can

be reached at [email protected].