Views from the Hills by R. E. Stevens, GENESIS II (The Second Beginning) E-Mail views@aol.com

If I know where I want to go, before figuring out how to get there, I must know where I am.

(Planning a trip and entering the market require the same preparation.)

It sounds so logical but how often do we find companies that want to enter a market category with a new idea, at least new from their perspective, without building their foundation of knowledge as it relates to the category? The scenario usually starts with R&D coming up with a new technology or category benefit in a product category that is new to the company.

My first response is usually, "What right do you have to be in this market? What do you bring to the table from a user's perspective?" After some adjustment to the shock of the question, we settle into the knowledge mode. What do we really know about the market, competition, consumers' perspectives, habits and practices, customers' needs, and corporate fit?

Basically we need a road map of the terrain. Before moving blindly forward, there is considerable groundwork necessary to determine if we should even invest in the development of the product. We should know the market. Who are the key players? What are the strengths and weaknesses of each potential competitor? What are the consumers' habits and practices? What are the basic consumer needs of the category and what are the added benefits among competition? What are the consumers' accepted beliefs about the category? The line of questions continue.

From the consumer perspective, what will it take to get our product on the store shelves? Is the cost worth the potential return on investment?

Perhaps a couple of examples can better reflect my thoughts. I have written before about a case at Procter & Gamble where a team had been working on a new idea for an institutional product that would ultimately lead to a consumer product. The team had been developing their idea for three years. Now they wanted to do some user evaluations. After an initial discussion with the team leader about the idea, we set up a visit to a facility that would use this type of product. In less than 10 minutes in the facility, the team leader was aware that the new idea was about five years late. There were three companies that had basically the same idea already on the market. Before developing the idea, the team should have explored the market.

In another product development program, we had spent a number of years not only developing the product but conducting the required consumer testing. We had a much preferred product to the current market options. But as we were about to move to market introduction, we encountered a roadblock. The product distribution required a refrigerated distribution system. Oops! We didn't have one. The financial analysis indicated that the cost of manufacturing and a new distribution system would result in a less than acceptable return on the investment.

A little planning up front can save a lot later. 


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