7 Musts for Profitable New Products

1. Delight your target consumer
DO focus on creating items that truly solve your target consumer’s needs and points-of-pain
DO meet and exceed their needs
DO create fans, not just customers
DON’T focus on internal issues

√ Can you precisely define your target market and what motivates them?

√ Does 50% of your target audience say they definitely or probably would buy your product?

2. Make sure it’s profitable early
DO screen ideas for profit potential at the idea stage
DO rework ideas early to address any profitability issues
DON’T pursue a flawed business model

√ Does my item yield a lucrative P&L on a total and per unit basis?

√ Do I have a viable business in Year 1 and “Year 3”?

3. Select and perfect ideas
DO choose the best among several ideas
DO challenge and refine good ideas to make great ideas
DO seek feedback from your target consumer and development resources
DO strive to exceed expectations, be different, be better
DON’T jump to one answer
√ 
Is this among our best 1 in 3 or 1 in 5 ideas?

√  “What could make this even better?”

4. Position and clarify the product idea
DO ensure you clearly articulate what it is, what it does and how it benefits your consumer
DO take full responsibility that your customers (trade and consumer) understand its benefits
DO be different and superior
DON’T overlook any opportunity to precisely tell your story (e.g. every touch point)

√ Can you explain your concept in 5 words or less? Do customers (trade and consumer) understand and respond to your
idea?

√ Are you different and/or superior?

√ Do you have a compelling profit story for the trade?

5. Keep your marketing frugal, focused and factual
DO identify your business goals before you spend anything
DO compare and choose among alternatives (suppliers, programs, methods)
DO quantify the productivity and efficiency of your programs
DON’T “just do it”
DON’T overlook low-cost and no-cost public relations opportunities

√ Does this plan/program meet my business objective?

√ What is the return-on-investment? Is there a more efficient option?

√ Is this program fully leveraged and consistent?

6. Perfect your business model
DO maintain, measure and continuously improve a test market
DO test and refine product mix, pricing, and sales and marketing tactics
DO track and improve profit performance
DON’T measure progress only by total sales growth
√ 
Have you identified a small market in which you can monitor your business model?

√ What is your P&L performance in this small market?

√ Are you continuously testing and improving performance?
√ Can you expand your best business model?

7. Outmaneuver the big guys
DO monitor and react to consumer feedback
DO identify and own your niche
DO develop new products faster
DON’T compete directly with them where they are strongest
√
Do/can you own your niche?
√
Can you serve market needs and gaps that big guys consider ‘too small’?
√ 
Can you incorporate feedback for more, superior new products?

MiO brand liquid water enhancers – Killer Concept, but Terrible Trial

Kraft’s new MiO brand liquid water enhancers are a fantastic idea, but sadly, so disappointing in reality.   Kraft is touting it as their first major brand launch since DiGiorno in 1995, to capitalize on the  $10 billion bottled water market.   Unfortunately,  it’s a great example of how even the best innovations will languish, if you overlook some execution basics.

The innovation concept itself is so promising. Leveraging their flavored beverage brilliance (Kool-Aid and Crystal Light), Kraft positioned MiO as a revolutionary, more contemporary portable water additive. The name is great – connoting personalization and a clever play on H2O. The launch plan was spectacular, heavy traditional and social media support creating cult awareness before the product even reached stores. Teenagers were begging their parents to get some; it doesn’t get much better than that in marketing.   MiO had stellar packaging and product displays – unique, eye-catching, and shaped like a water drop.

The television advertising campaign is exceptional too – clearly positioned the product as revolutionary, consumer-customizable, and thirst quenching.   Brilliant use of music (“That’s the way I like it”) reinforcing the customization benefit, and solid media plan to ensure the target market was aware of this
new product.

A nearly flawless product launch…. uh…. except…..

1) Distribution was spotty.     In many major metro markets, where the traditional and social media campaigns had successfully built demand, the consumer couldn’t find it in their stores.    It wasn’t there yet.   Millions of dollars wasted…
2) Consumers can’t find it when it IS in the store.     Consumers don’t know where ‘liquid water enhancers’ are located within stores, nor do they want to invest time hunting for it.
3) It tastes bad.    Game over.    Particularly disappointing taste experience compared to the compelling promises in the advertising.
4) Niche flavors.    Berry Pomegranate, Mango Peach, Peach Tea, Fruit Punch, Strawberry Watermelon, and Sweet Tea.  While an interesting line-up, which of these are drink daily/high volume flavors?

Oh MiO, we’re disappointed… and know you will be too.

Lessons Learned:
1)   A great idea is only as good as it is executed.    Make sure you have a great concept and great delivery of that concept to consumers, to succeed at innovation.
2)  Every product category has one or two major expectations that are deal-breakers.    In food and beverage… duh… it better taste good.
3)  Make sure your product is available before you waste a dime building demand.    Why would you pay to disappoint a new customer?
4)  Make sure your consumers can, and will, easily locate your product.   Tell them where to find it, if necessary.
5)  Cover the predictably high volume sku’s in your product assortment.    Small twists and variations on staples are often big winners.  Don’t just offer several ‘unique’ but low-volume items.

The Ted Williams Phenomenon: Big Marketing Winners… so far

The world is temporarily fascinated with the Ted Williams homeless to celebrity voice internet star phenomenon.    At its core, it’s a heartwarming and inspiring story of second chance – and a little bit of refreshing, upbeat  news.      Of course, I’m fascinated with how  talent and instant celebrity translates to effective  brand marketing.    Here are the big winners, so far…

1.   Ted Williams, the man -  Clearly he has great talent and appears to know how to use it.    On his  handwritten sign at the side of the freeway, he positioned himself as “ex-radio announcer.”  Hopefully he will continue to prosper, long after his 15 seconds incredible fame, with food, clothing, shelter, and personal fulfillment…. and avoid his prior missteps.

2.  The Ted Williams brand -  Given the media craze, this brand has achieved double-digit brand awareness worldwide.     Like it or not, his exposure this week is similar to that of the world’s largest advertising supported brands.      Ted Williams brand has incredible momentum, awareness, relevance and image .    Time will tell how the momentum and image evolve.

3.   Kraft Macaroni & Cheese -   Kraft,  and their agency, Crispin Porter + Bogusky, were absolutely brilliant to hire as the spokesperson for the Kraft Macaroni & Cheese brand – quickly.     They got tens of millions of dollars worth of advertising and public relations for this sound decision.    Further, they were incredibly nimble to seize the opportunity so quickly – no small feat for a huge corporation.    Williams is the voice-over talent you’ll hear as Kraft debut’s a new television spot on Sunday’s Kraft Fight Hunger Bowl.  

Again, Kraft recognized and seized the opportunity to bring more relevance and visibility to their sports sponsorship and  Huddle to Fight Hunger campaign – in which they’ve donated over 20 million meals to Feeding America, the nation’s leading hunger relief organization.     This is marketing at its best.

4.    Cleveland Cavaliers  – Similarly, the Cavaliers were swift to offer him an attractive job and give him a home.      It will beat a great coup if the Cav’s get a famous ‘voice of the Cavaliers’ announcer.      A great boost for the Cav’s spirits and image after the LeBron James fallout.

5.  Adidas -  Williams was prominently sporting Adidas clothing from head to toe on Thursday night’s Jimmy Fallon show, just hours after wearing regular duds in the morning on the Today show.      Whether Ted just selected the clothes himself, Adidas donated some apparel, or there is a potential deal in the works,  that’s a three-minute national product placement.

6.     WNCI‘s Dave & Jimmy Show -  These Columbus, Ohio radio hosts first heard about Ted Williams via a video story in the Columbus Dispatch.    They gave the guy a chance and invited him in.     This created tremendous unexpected visibility for their show, including an interview with the BBC.    When asked if they considered themselves “a kingmaker.”  they modestly answered that all they did was given him a forum and a chance.    Very classy.

Lessons Learned:

1.  Seize the moment: PR opportunities come when you least expect it.    Keep your head above water (scan your larger universe)  to look for opportunities (as Kraft and the Cleveland Cavaliers did), recognize or develop the mutually beneficial tie to your brand, and act quicker than competition.     Be, or get, capable of mobilizing on your opportunities.

2.  Position Yourself: Be clear on who your brand is and what benefit it provides to your target customer.

3.  Talent is Everywhere: I’m as, if not more, guilty as the next person of underestimating or labeling a homeless person.    It’s a vivid reminder that every person in your company, and life, is rich with unique talent that can, and should be, unleashed.

10 Obscenely Easy Ways to do Better Marketing

Brand marketing and strategy can be very complicated, analysis driven, or even intimidating.    But much of the time, it just isn’t.     Here are 10 obscenely easy ways to do better marketing.    And this isn’t about one particular company, rather, all too many.

1.     Focus -  If you haven’t already, figure out what business you really are in (it’s not what you make, it’s whose problems you solve), what drives your business model, and what you need to attack first.    Less is always more, and more profitable.
2.     Develop your Business Strategy – This needn’t be the all-consuming five-year plan that is both painful and rarely used.    Just figure out what direction you want to head, make sure you know why you want to head that way (versus other alternatives), and make sure that direction is financially sound.      This is CEO and Board stuff, and it’s critical.    But it’s all too frequently not done.

5 Ways to Ignite Brand Innovation

Only 10 percent of new products launched in the United States are successful, according to Ernst & Young. This 90 percent failure rate for new products is tragic and avoidable. Leading innovators could consistently and successfully launch new products, simply through better planning and execution. The failure rate of new products doesn’t have to be so high, and the number of people and companies launching successful new products can be greater. Here are five Best Practices for innovation and launch of new products:

1. Set priorities and expectations: Innovation is more successful when it is established as a corporate priority. Senior management must set and broadly communicate clear and consistent innovation goals within the corporate strategy. Goals must be measurable and have clear accountability: Sales, profit and payback goals for the entire innovation effort (all products and services), typically for a one-year or five-year timeframe. Both marketing and research and development have interdependent accountability to deliver these goals. This step alone can address the paralyzing chasm between most marketing and R&D teams.

Super Bowl 2010 Ads: Rankings and Rants

Overall, an uninspiring collection of Super Bowl commercials last night.    Few disasters, few fabulous, a lot of just okay.    In most cases, each :30 ad was a $3 million investment ($2.5 million for air time, $500,000 ish for production) – so mediocre won’t exactly drive a return-on-investment.     Today’s Super Bowl ad chatter is mostly about entertainment, humor, and likability – and lots of fun.   Entertainment is swell, but advertising effectiveness – persuasion (making consumers feel differently about your brand) and incremental sales –  is what really matters.

Here are the winners from four marketing mavens – USAToday‘s AdMeter (popularity), Ad Age’s Bob Garfield (ad quality), Squawq (brands’ Twitter buzz), and me (effectiveness).

USA Today                               
Best:
1.   Snickers
2.   Doritos (dog collar)
3.   Bud Light (beer can house)
4.   Anheuser-Busch (Clydesdale friend)
5.   Coca-Cola (sleepwalker)

Brand Authenticity: Tiger’s Tailspin

Brands must be authentic.    Great brands, like people, create positive enduring relationships based on their credibility and consistency.      While brands have always needed to continuously earn their esteem, social media now makes brand authenticity a mandate.     All eyes are watching your brand, and missteps are reported globally in an instant.    Keep it simple.    Make your brand authentic.

Lack of authenticity is what’s driving the unprecedented demise of the Tiger Woods brand.   His ‘brand truth’ is dramatically different from the carefully honed aspirational brand image.    And it was that faux brand image and esteem that made brand Tiger so ideal for corporate sponsorships.     Incessant media coverage and its exponential visibility in the blogosphere unearthed the size of brand Tiger’s lack of authenticity.     Post-media frenzy, his champion credentials will remain, but the ‘wonderful man’ imagery has been unveiled as a sham.      Brand Tiger’s demise is an extreme, but illustrative example, of the danger of lack of brand authenticity.     Last week, AT&T joined the growing list of multi-million dollar sponsors who really had no choice but to stop aligning their brand with Tiger Woods.    The financial value of the Tiger Woods brand is a fraction of what it was just a month ago.    

Off! brand: Innovation by Nailing Nuisances

Off! brand solved one of consumers’ biggest problems with their category… and their new product is flying off the shelf. Here’s a great example of a company that sufficiently understands its category and consumers and use that knowledge to drive breakthrough innovation. They solved one of consumers’ biggest concerns about insect repellents – the inconvenience and fear of applying it to your skin – with the Off! Clip-On and early sales results are exceptional. According to Ad Age, the Off fan has exceeded S.C. Johnson‘s initial sales expectations by 400%, sold $4.2 million in its first month, and retailers’ sole problem with the item is keeping it in stock. And at a premium price of over $10!

Swine Flu: CDC’s Brand Coup?!

As we all wash our hands for the 89th time today, you have to admire the Center for Disease Control‘s effective branding and positioning of the Swine Flu. Really, would the threat of an obscure H1N1 virus sufficiently capture our attention or become a media darling? ‘Swine flu brand’ has gained exceptionally high consumer awareness in a short time, reinforced awareness with frequent and relevant messages, generated buzz and driven preventive activity. Amazing, given that medical professionals are still sorting through the validity of this flu’s unique severity.

Target Triumphs with Consistent Communication

A staggering 96% of Americans recognize Target Corporation‘s bullseye, putting the brand in the brand awareness stratosphere with the likes of Nike and Coca-Cola.

This exceptional brand awareness is a direct result of their consistent communication. While most chief marketers continue to cite Integrated Marketing Communication as their biggest challenge, according to the Association of National Advertisers, Target masters it.