Breaking out of the Linear Innovation Testing Process: How to Innovate Holistically
In consumer product goods (CPG) innovation, it’s inevitable that some products, even the well-thought-out ones, fail. In my work, I often see that disappointing results aren’t because the product idea is bad or that testing hasn’t been rigorous. Rather, it’s that various aspects of the product have been tested in isolation. A holistic approach, on the other hand, tests all aspects of a product together, ideally in a real-world setting.
CPG companies have traditionally executed a linear innovation development and testing process as internal decision making is seen as a series of stage-gates that each need approval. This leads to a slow build of the individual pieces of the new product “puzzle”. The various cross-functional members of the innovation team each works to refine their aspect of the product, from formulation to packaging design to pricing. Many times, the first time a new product is on the shelf in the full competitive context for consumers to purchase is at launch.
And too many times when that product gets to the shelf it does not perform as well as tested, despite all the meticulous work.
Unfortunately, this makes sense. Consumers don’t make decisions about whether to buy a product based on the perceived benefits, package, placement, or price in isolation. Testing those aspects separately often results in false reads on how consumers will perceive the final product.
For example, a new snacking product might get enthusiastic responses to the concept and printed images in a focus group, garner positive feedback in isolation in an in-home use/taste test (IHUT), and receive a “good to go” rating to pricing when asked in an on-line survey tied to a digital image, etc. But when those same people encounter the actual snack in a store, real-life factors—like dieting, budget constraints, competitive products, relative size on shelf, or being in a hurry—change their decision. The price or placement may be off relative to the many options available to substitute on the shelf, colors might not pop, fonts could be too small and hard to read making it hard for a shopper to know what the product is or how it fits in their lives, or the overall presentation may simply fall flat with consumers.
That’s why Mission Field recommends a holistic approach—testing all parts of a new product together, in a real-world setting. This provides the most accurate information about consumers’ perceptions and whether they will purchase that product or not. Holistic, in-store testing reveals nuances that help you iterate and refine a product to align with actual consumer behavior.
Case in point: I recently worked on a project where a product's packaging was designed perfectly for multipacks, but when the product was tested in-stores to be sold as singles, it looked like a poor value compared to competitors' smaller yet longer and skinnier bottles. The clients bottle actually had more ounces making it a better value, yet it was seen as smaller hence more expensive at a glance. That was a crucial insight for the innovation team and one that was easily corrected to adjust for competitive relevance head of launch.
Real-world testing in stores—throughout the innovation process—can reveal powerful insights, and ultimately help your team make better choices about every aspect of the new product.
Curious about how you can take a holistic approach to innovation? Reach out to us at hello@mission-field.com.