This details Rick Steinbrenner's - The Global Brand Guy - expertise in new product development. It discusses best practices using staged tollgate new product development processes and gives two examples on how it can be used. Rick Steinbrenner - The Global Brand Guy

1. Staged Tollgate New Product Development Process
Best Practices
1
2060 Queensbury Drive
Acworth, GA 30102
770-514-9363
rick@globalbrandguy.com
Consumer Package Goods Consumer Durables
Brand Equity-Building Experience With Leading Global Consumer Brands

2. 2
Rick Steinbrenner:
New Product Development Skills & Experience By Phase
Phase I: Opportunity Identification
 Competitor marketplace/product review & analyses
 New product concept brainstorming – both internal and external
 Qualitative consumer research - from informal interviews to focus groups
 Quantitative consumer research – from simple concept screens to global conjoint analysis & discrete choice modeling
 Syndicated consumer research analyses – Nielsen, IRI, NPD and IMR among others
 Functional technology brainstorming experience with engineering and/or research and development functions
 Intellectual property reviews and management – both trademarks, patents and licensing agreements
 Development of new product design guides and specifications
 Critical path timeline development and management
 Business proposition development prior to funding requests – including volume/pricing/profitability projections
Phase II: Design/Development
 Make vs. buy production source evaluations and planning
 Capital authorization request development for Sr. management approval
 Off-shore production sourcing expertise (Europe, Mexico, Canada, Japan, China and Australia to name a few)
 Target product cost development to meet profitability requirements
 Advanced manufacturing plant layout/design interface – including production tooling input
 Industrial design planning and management
 Intellectual property legal filings and development agreements
 Consumer in-home use testing verification of product vs. specifications
 All facets of marketing planning including but not limited to:
 Packaging structure plan
 Communications plans - including broadcast TV, direct response TV, print, and online
 Channel management strategy and distribution planning
 Pricing/discount structures/profitability plans & budgets
 Marketing agency interface and management
Phase III: Commercialization/Launch
 Customer and field sales presentation development
 Production planning – to meet customer volume requirements
 Customer service briefings – including pricing management
 Implementation of marketing plans including but not limited to:
 Media placement
 Press releases/events
 Packaging graphics
 Trade marketing collateral from brochures/sell sheets to trade show/industrial video development

3. “Best Practice” New Product Development Process Overview
Phase 1
BusinessTeamReview/Decision
Phase 2
BusinessTeamReview/Decision
Phase 3
Opportunity Identification Design/Development Commercialization/Launch
Major Activities:
 Identify new product concepts
(sources):
 Customer ideas
 New functional technologies
 Consumer research
 Competitive product reviews
Brainstorm/develop new concepts
Refine & screen new concepts:
 Informal customer reviews
 Qualitative research (focus groups)
 Quantitative concept screen ranking
Business Proposition Development:
 New product design guide
 Technical/engineering feasibility
 Develop rough prototype
 Pricing/volume/profitability analysis
 Intellectual property reviews
 Launch timeline - first pass
Major Activities:
Develop capital authorization request:
 Production sourcing plan
 Production tooling plan
 Finalize launch timeline
 Profitability/capital financial plan
Pre-production/pilot builds/protection:
 Off-tool prototype confirmation
 Advanced manufacturing design/scale-up
 Intellectual property legal filings
Consumer/In -home use testing
 Changes to product/positioning as needed
Develop marketing plan/budgets:
 Packaging structure plan
 Communications plans (TV/Print/Online)
 Distribution strategy
 Pricing/profitability plans & budgets
 Final launch timeline – start ship
Major Activities:
Final sales/customer presentations:
 Customer planogram approvals
 Confirm year one volumes
Production start/warehouse builds:
 First piece inspections
Year one production requirements
Implement pricing – customer service
Implement communication plans:
 Media placement
 Press releases/events
 Packaging grapics
 Trade marketing collateral
Tollgates
Note: This process is designed for brand new concepts or risky functional technologies not previously commercialized by a company.
Other simpler less “risky” concepts might require less activities or time as shown above.
3

4. 4
New Product Case: ProFinish Premium Irons
Business Situation/Problem:
 Current premium product was losing sales and distribution
 Product 20+ years old – design/performance lapped by competition
 Historical iron consumer purchase and usage behavior not well understood
 Company failed on four other occasions to develop a more competitive product
Phase I: Opportunity Identification
Major Milestones
 Redefined consumer behavior segmentation strategy – total iron market
 Identified premium ironing purchase/usage behaviors – appearance driven ironers
 Completed product design and specifications – including product feature offerings
 Developed industrial designs & product line offering by geographic region
 Determined business proposition volume/pricing/profitability and timing
Phase II: Design/Development
Major Milestones
 Capital authorization request ($3MM) approved by B&D board
 Built off-tool prototype – consumer in home use test verified performance
 Confirmed product design for cost effective manufacturing – cost targets met
 Set final pricing and discount structures – retail and customer
 Developed marketing communications plans and budgets
Phase III: Commercialization/Launch
Major Milestones
 Secured customer planogram approvals and volume commitments
 Built up warehouse inventory to meet volume requirements prior to launch
 Confirmed product met original design specifications
 Launch materials available on time to sales force and media agencies
Program Results:
 First premium iron to launch comfort grips feature – addressing unmet user need
 21 utility and design patents
 Voted a Consumer Digest “Best Buy” in 1998
 Achieved 100% distribution at mass merchants and specialty retailers
 Became a $30MM business from zero – paid out capital investment
Maximum Steam Performance:Maximum Steam Performance:
No other premium iron steams more
Superior Non-Stick Glide:Superior Non-Stick Glide:
New space age Soleplate Coatings
Comfortably Designed:Comfortably Designed:
Comfort Grips & Unique Control Design
(New Category Feature)

5. 5
New Product Case: DuPont Car Care Products
Business Situation/Problem:
 Tenneco: $6B+ OEM/Aftermarket parts supplier – B2B business model
 Current served markets: shocks & struts and emission control - #1 share rank
 However, served markets declining due to low service maintenance replacement rates
 Core business sales/profitability declining; brand equity poor (e.g. Monroe shocks)
 No consistent product development program or process existed prior to 2003
Phase I: Opportunity Identification
Major Milestones
 DuPont looking for a licensee to re-enter car care market to bolster auto paint line
 Tenneco identified new car care “best in class” formulations in a water based format
 Identified key heavy user purchase/usage behaviors – appearance driven innovators
 Discovered appearance innovator need – “car’s appearance is never how I want it”
 Uncovered new Wear Shield friction modifier technologies for performance products
 Developed product line design and specifications
 Determined business proposition volume/pricing/profitability and timing
Phase II: Design/Development
Major Milestones
 Identified contract manufacturing production sources
 Built prototypes – consumer in home use test verified performance vs. competition
 Confirmed product design for cost effectiveness manufacturing – cost targets met
 Set final pricing and discount structures – retail and consumer
 Developed marketing communications plans and budgets
Phase III: Commercialization/Launch
Major Milestones
 Secured customer planogram approvals and volume commitments
 Built up warehouse inventory to meet volume requirements prior to launch
 Confirmed product met original design specifications
 Launch materials available on time to sales force and media agencies
Program Results:
 Secured distribution in mass merchants, home centers & auto stores (15,000+ outlets)
 Introduced Tenneco to Wal-Mart, Lowe’s, Target & Auto Zone as new customers
 Introduced 17 new products generating over $5.0MM in sales
 Spray Wax, Tire Shine and Wheel Cleaner were top 10 best sellers in NPD rankings
Marketing programs included access to DuPont Motorsports
with 4 time NASCAR Cup winner – Jeff Gordon

6. 5
New Product Case: DuPont Car Care Products
Business Situation/Problem:
 Tenneco: $6B+ OEM/Aftermarket parts supplier – B2B business model
 Current served markets: shocks & struts and emission control - #1 share rank
 However, served markets declining due to low service maintenance replacement rates
 Core business sales/profitability declining; brand equity poor (e.g. Monroe shocks)
 No consistent product development program or process existed prior to 2003
Phase I: Opportunity Identification
Major Milestones
 DuPont looking for a licensee to re-enter car care market to bolster auto paint line
 Tenneco identified new car care “best in class” formulations in a water based format
 Identified key heavy user purchase/usage behaviors – appearance driven innovators
 Discovered appearance innovator need – “car’s appearance is never how I want it”
 Uncovered new Wear Shield friction modifier technologies for performance products
 Developed product line design and specifications
 Determined business proposition volume/pricing/profitability and timing
Phase II: Design/Development
Major Milestones
 Identified contract manufacturing production sources
 Built prototypes – consumer in home use test verified performance vs. competition
 Confirmed product design for cost effectiveness manufacturing – cost targets met
 Set final pricing and discount structures – retail and consumer
 Developed marketing communications plans and budgets
Phase III: Commercialization/Launch
Major Milestones
 Secured customer planogram approvals and volume commitments
 Built up warehouse inventory to meet volume requirements prior to launch
 Confirmed product met original design specifications
 Launch materials available on time to sales force and media agencies
Program Results:
 Secured distribution in mass merchants, home centers & auto stores (15,000+ outlets)
 Introduced Tenneco to Wal-Mart, Lowe’s, Target & Auto Zone as new customers
 Introduced 17 new products generating over $5.0MM in sales
 Spray Wax, Tire Shine and Wheel Cleaner were top 10 best sellers in NPD rankings
Marketing programs included access to DuPont Motorsports
with 4 time NASCAR Cup winner – Jeff Gordon