The Use of Intuition in New Product Development and How it Helped An Aussie Company Become a World Leader.

CLIENT INDUSTRY: Consumer Goods

I suggested the client launch Product X. 

The client was initially a little reluctant because keyword and market research didn’t indicate that there would be huge demand. There was also some question as to whether sales of existing product would be cannabilised.

I mentioned that I didn’t believe that would occur. In fact, I believed that it would dramatically increase market penetration and market share plus increase the conversion rate on existing products.

The client agreed to launch the new product.

When they did,  sales of the original product didn’t’ get cannibalised. They actually increased plus the new product was a smash hit and increased overall revenue in that category by something like 40%  (I don’t know the exact numbers).

They then used this strategy again and again across many, many segments. They increased their range by 6 or so products using this kind of ‘cookie cutter’ approach. Revenue went through the roof.

Just as importantly, the company became more attractive to potential buyers and retail chains too because they now had a fair stable of products across multiple market segments.

(Based on an FMCG client . Details are vague to protect client confidentiality.)

THE LESSONS

1. BE OPEN TO ADVICE

Even though the client had decades of technical expertise and based on that expertise she figured she knew what the market wanted BUT even so, she knew that she didn’t know everything and was open to listening to experts.

2. USE RESEARCH and INTUITION COMBINED

She knew that intuitively I had always been ‘on the money’ with previous advice I’ve given her plus I also had the statistical research data to back it up.

3. BOOT STRAP AND MITIGATE RISK

Then – to mitigate risk, she created a system for soft launching new products so even if the product didn’t work, there was very little product development outlay.

Unlike many companies in her industry she didn’t need to spend millions and years in R&D before launching which is common in the industry.

4. BE MINDFUL OF YOUR EXIT STRATEGY

When developing and launching new products, each potential product had to pass through a series of ‘GATES’.

One of those early gates was that the product needed to be in alignment with the founder’s exit strategy for the business. It also needed to meet a number of different non-negotiable logistical criteria before the product became a YES.

5. YOUR EXIT STRATEGY

When developing and launching new products, each potential product had to pass through a series of ‘GATES’.

One of those early gates was that the product needed to be in alignment with the founder’s exit strategy for the business. It also needed to meet a number of different non-negotiable logistical criteria before the product became a YES.

The same can apply for a coaching business too.

• What are your product selection criteria?
• Is it aligned with your core business model?
• Does it add value to your core offer or is it a distraction?