Overcoming barriers, embracing technology and prioritising innovation in CPG product development

Consumer packaged goods (CPG) companies navigating the ever-changing landscape of product development face multifaceted challenges, from market dynamics to technological advancements. In this article, we delve into the key barriers hindering new CPG product launches, the impactful technologies shaping success, evolving metrics of success and the critical role of consumers in the development process.

 

Overcoming barriers in CPG product development: a global perspective

 

One of the foremost challenges in new CPG product development lies in the scarcity of access to comprehensive product development investment data combined with post-launch insights. Without this crucial information, companies struggle to make informed decisions during the early stages of development. The lack of a global understanding of the development and launch roadmap further complicates matters, especially for companies dealing with numerous products across various markets.

 

Consumer buying habits, continually evolving towards healthy choices and sustainability, pose additional challenges. The time and financial investments required for developing and launching a new product make sudden shifts in consumer preferences a cause for concern. Newer CPG companies, operating with agility, gain a competitive edge over traditional players, adapting more readily to changing market demands.

 

Navigating international trade regulations is yet another hurdle. Not all regions follow the same supply chain models, impacting the global success of a new product. Emerging cap-and-trade and carbon credit regulations now play a pivotal role, influencing decisions if a product’s environmental impact aligns with an organisation’s emissions goals.

 

Technological innovations reshaping CPG product launches

 

In the realm of technology, integrated solutions that streamline the entire product development cycle are proving instrumental for successful launches. Having all relevant data in one accessible platform minimises data governance efforts and facilitates real-time decision-making. Advanced AI-born search capabilities offer visibility into product performance, helping organisations select projects with higher chances of success.

 

For CPG executives, mobile and insightful decision-making tools are becoming indispensable. With speed being paramount in decision-making, tools that allow on-the-go executives to assess critical data are crucial. The shorter the time to market, the quicker the impact on top-line revenue.

 

Evolving metrics of success in the CPG sector

 

Traditionally, market share has been the go-to metric for measuring success in the CPG sector. However, as consumer preferences shift towards healthier and sustainable options, new considerations come into play. Cannibalisation of existing product lines becomes a concern, especially with retailers having limited shelf space for new products.

 

Success is no longer solely defined by incremental revenue or market share increase; it extends to risk reduction, cost efficiency and optimal resource utilisation. Organisations leveraging integrated project portfolio management (PPM) solutions report launching a remarkable 18 per cent more projects annually with the same resources.

 

Placing the consumer at the heart of development

 

In the evolving landscape of CPG product development, the consumer’s role is more pivotal than ever. Transforming an idea into a commercially successful product demands placing the consumer at the forefront. Continuous analysis of consumer buying trends and behaviours is crucial in the digital age, where innovation disruption is the norm.

Interviewing customers about their desired outcomes becomes imperative in the innovation development process. Focusing on outcomes is essential for research and development (R&D) groups as they strive to develop long-term products that align with both customer needs and market trends.

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Unlock the future of CPG innovation! Download our infographic on overcoming barriers and embracing consumer-centric product development

 

By Stephan Wiesner, Sales Director EMEA, Planisware