Successful new product launches are those that listen to consumer needs and develop an in-depth understanding of what drives consumer preferences. Whatever brand strategy is chosen for a new product, the business must be prepared to invest a significant amount of money over the long-term to support the product. Often new product launches fall down as the media investment is much lower than required, and solely focus on short-term gains.
New product development (NPD) is the process of bringing a new product to market. This includes conceptualising ideas, designing, developing and eventually launching a new product or service in the market.
1. Successful NPD is consumer-led
Brewing giant Anheuser-Busch InBev has rethought its approach to innovation in order to become more responsive to consumer needs. Following poor innovation success rates before, AB InBev is transforming itself to innovate much faster. It employs separate teams working to bring new products to life in less than 100 days, with an emphasis on better insight from data-analytics and social media, and a test and learn approach to kill bad ideas fast. Among the consumer-driven successes are Michelob ULTRA Pure Gold Organic Beer, Budweiser Copper Lager - a partnership with Jim Beam bourbon to create a beer aged in bourbon barrels – and Drinkworks – a partnership with Keurig Dr Pepper creating capsules for a range of 24 different cocktails made by a bartop machine that mimics the technology of Keurig coffee and espresso makers.