the reduce, reuse, recycle of innovation

by: Becky Mead

When sales aren’t going swimmingly, it’s tempting to “turn on” innovation as a solution. Many businesses believe they’ll be able to fill the gap by ramping up with more projects, more people and faster timelines. Unfortunately, this strategy doesn’t stand up.

If you’re facing this kind of pressure, don’t work harder to “churn and burn” through your innovation pipeline. Instead, adopt the principles of recycling - reduce, reuse, recycle. This potent combination is the smart way to innovate. Let’s explore what it might look like in practice.

duotone (30)

reduce (60-70% of your pipeline)

 

It may seem counterintuitive, but less is more when it comes to innovation. Producing fewer, bigger and better products is far more effective than throwing out numerous average ones. Quality over quantity - that’s what brings in the big bucks.

To achieve this, you must make your NPD projects work harder. Look for ways to double your product’s consumer appeal with more flavours and different pack formats. Launch under a new or sub-brand that expresses your offer in a novel and more impactful way. Aim for incremental shelf spacing, then back yourself by putting significant launch support behind your chosen few. For example, you could launch a new yoghurt range in multiple formats (single tub, 6-pack and family tub) with one big campaign. This approach will help you achieve greater shelf and market impact.

If relying on fewer products feels risky, invest in market research to confirm purchase intent. Validation is key. This way, you can confidently choose three big, strategic plays that you know will move the needle. Idea screeners, concept tests and volumetric tests can help you establish whether your product is unique and desirable. If you discover that 65% of the population wants to buy it once per week in three flavours, you’ll know it represents a sizeable opportunity.

 

reuse (10% of your pipeline)

 

The reuse portion of your pipeline should be light and easy. It’s all about bringing new news to the category and keeping the retailer happy. This is the time to lean on your ingredient and flavour suppliers, as well as your R&D team. Among them, there will always be a range of flavours, fragrances and formulation tweaks that you can quickly turn into an NPD bundle.

It’s okay if these innovations become short-term, “limited edition” line extensions. You just need to execute them quickly and cheaply. Use existing equipment, plus current packaging and suppliers (for a short development period). Light research would be helpful, like conducting a flavour screener to put your best line up on the shelves. The outcome should simply involve tweaks to an existing formula.

Some words of warning: Don’t rely heavily on this type of innovation. While line extensions have a role to play in your pipeline, they won’t drive game-changing sales growth. Not all innovation is equal, yet many manufacturers spend the majority of their time on these quick wins. The reality is that more flavours don’t generally mean more shelf space. Instead, you’ll likely cannibalise your own shelf space.

 

recycle (20-30% of your pipeline)

 

Finally, it’s time to stop searching for shiny new toys; we covered that in “reduce”. The remaining part of your pipeline should be about recycling and optimising sleeping giants. Revisit your current products, particularly your core range. What could make them more relevant, useful and desirable? From a shopper and consumer perspective, is there a reason no one’s buying?

Sometimes a pack size change can revitalise and increase the relevance of entire categories. Additionally, simple improvements to functionality (like resealable dried pet food bags) can encourage consumer defection from another brand.

Almost every portfolio has a product that isn’t selling because consumers have fallen out of love with it. Perhaps the packaging is outdated, and a facelift would turn everything around. Remember soup in cans? Once a pantry staple, many of these products have been replaced with chilled pouches that signal freshness to today’s health-conscious consumers.

The most important lesson here is to balance your innovation pipeline. By strategically dividing the pie and reducing risk with consumer insight, you can secure sky-high sales AND your organisation’s future.

While breaking down innovation this way might seem simple, the practicalities can be complex. That’s where the PLAY Innovation team comes in. We’re experts in identifying consumer-led opportunity areas and can help retune your NPD process to maximise in-market success. Email me at becky@playinnovation.com.au to get started.

 


 

read it, love it, share it.

about the author

Becky Mead

Becky has spent the last 18 years getting curious about understanding consumers so FMCG manufacturers can create products they truly want. Becky’s favourite part of the job is helping businesses leverage the consumer perspective to grow - fast! She believes in the benefits of working in partnership with her clients across the entire innovation process and focuses on consumer-first, agile approaches.

ask the author

related posts

smart choices in AI: how to evaluate consumer research AI tools

Arrow

the art of failing forward into successful NPD innovation

Arrow

beyond taste: 6 key sensory testing tips for FMCG product success

Arrow

the reduce, reuse, recycle of innovation

Arrow

PLAY’s 2023 product picks: innovation, indulgence and automation

Arrow

3 tips for turning NPD stage-gate into a benefit, not a burden

Arrow

create a triple win by trying NPD “yes, and” with retail buyers

Arrow

4 Overlooked Opportunities in a Recession

Arrow

recession proof: ramping up innovation during an economic downturn

Arrow

listen or lose! the consumer-led way to avoid new product disaster

Arrow

preventing a costly relaunch misstep

Arrow

“PLAY’s ability to simplify what is sometimes a complex innovation research process worked perfectly for us."

Arrow

"PLAY have shown a strong understanding of research approaches, consumer brands and the FMCG categories we operate in."

Arrow

an action plan for FMCG businesses to avoid the ACCC’s campaign against greenwashing

Arrow

wins & woes in online grocery shopping: the experts weigh in

Arrow

UK HFSS legislation: understanding the impact on FMCG

Arrow

How to rally stakeholders to create a real “portfolio” of innovations (not just 28 line-extensions)

Arrow

how to find actionable NPD innovation insights

Arrow

tips for effective (yet effortless) product concept testing

Arrow

to benchmark or not? that’s not quite the question.

Arrow

4 tested tips to supercharge your NPD success in FMCG innovation

Arrow

Consumer sensory testing: fail forward or innovate fast?

Arrow

ingredient substitution: how to deliver perceived value AND increase profit margins

Arrow

fuelling the pipeline

Arrow

getting to market faster with design sprints

Arrow

package testing: how to spot unmet opportunities

Arrow

why FMCG product development should adopt sensible sustainability

Arrow

product performance analysis and inflation

Arrow

supermarket product shelf testing like you've never seen it before

Arrow

3 tips for packaging research success

Arrow

how to prioritise your research: when to invest or spend less

Arrow

how to use design sprints for superior innovation outcomes

Arrow

how to free up your time and educate your team to create killer concepts

Arrow

get ROI on consumer insights: failsafe tips to prove that innovation research is worth it

Arrow

dairy ideas that deliver to future focussed consumer needs

Arrow

balancing brand recognition with SKU differentiation on shelf

Arrow

understanding shopper response to a new type of cold & flu product

Arrow

using segmentation to inform a better, more consumer-focused approach to innovation

Arrow

identifying matches made in heaven (or hell!)

Arrow

bringing stakeholders and consumers together to develop powerful messaging

Arrow

expedite launch into a new category with innovation sprints

Arrow

pressure testing our product post-launch

Arrow

why products succeed and why they fail

Arrow

FMCG trends: post-pandemic predictions for 2022

Arrow

The new way to market zero and low alcohol products

Arrow

how much does market research really cost in Australia?

Arrow

how to write a product concept that delivers

Arrow

protecting your core range: is anyone 'normal' anymore?

Arrow

video: how do we take the start-up spirit into big business?

Arrow

PLAY's product picks of 2021

Arrow

2021 Product of the Year Awards: why did they win?

Arrow

upfront research: save money now, secure your product's future

Arrow

pivoting in a pandemic: what we can learn

Arrow

is your innovation process agile or fragile?

Arrow

how Amazon is impacting FMCG in a post-pandemic world

Arrow

the biggest soft drink trends for 2021 and beyond

Arrow

the biggest alcohol trends for 2021

Arrow

reimagining convenience with David Jones and bp concept stores

Arrow

busted: what consumers really think about popular product claims

Arrow

retail trends 2020: a COVID-19 Christmas

Arrow

our top 4 tips for running a remote innovation sprint

Arrow

hey Google, how do I use a smart speaker to enrich consumer research?

Arrow

how to find your product's sweet spot with rapid sensory research

Arrow

top natural trends for 2020

Arrow

gen z to boomers: how to market to every age

Arrow

the future looks rosé: top alcohol trends in a pandemic

Arrow

video: all you need to know about in-home product testing in 3 minutes

Arrow

get to market faster with innovation sprints

Arrow

video: FMCG trends and tips to gain a competitive edge during a crisis

Arrow

how you can nail your online offering with digital shopper

Arrow

solved: how to build a powerful brand

Arrow

3 ways sensory research safeguards success

Arrow

the biggest alcohol trends for 2020

Arrow

reaching new highs: Australia’s cannabis industry

Arrow

innovating in a complex category

Arrow

5 ways to deliver effective sensory research (without blowing the budget)

Arrow

5 top tips for a successful seasonal pack promotion

Arrow

how to build a sensory story at the largest CLT facility in Australia

Arrow

optimise path to purchase and protect your margins

Arrow

how eye-tracking will transform your shopper research

Arrow

why mini in-home usage trackers should be in your budget

Arrow

stretching beyond a brand's heartland

Arrow

Gen Z vs. Millennials: 6 ways they’re different

Arrow

sustainability: getting the green light from consumers

Arrow

how to minimise risk for new product launches

Arrow

how to effectively present and share insights within your organisation

Arrow

achieving faster sensory analysis with product clinics

Arrow

5 ways to get your product into consumers' healthy routines

Arrow

getting into the online shopper's basket

Arrow

natural trends: connecting with these consumers

Arrow

FMCG trends: the future of soft drinks

Arrow

video: the benefits of making market research more human

Arrow

concept testing: the basics

Arrow

sensory research: back to basics

Arrow

alcohol trends: tapping into health conscious drinkers

Arrow

innovation research: consumer-led product design

Arrow

packaging research: back to basics

Arrow

FMCG trends: the rise of small, innovative wellness businesses

Arrow

FMCG trends: adapting to an older market

Arrow

FMCG trends: the snacking revolution

Arrow

shopper trends: the changing face of Australia

Arrow

retail trends: leveraging the Chinese 'daigou' shopper opportunity

Arrow

FMCG trends: adapting to plant-based consumer demand

Arrow

packaging research: the e-commerce difference

Arrow

shopper research: applying semiotics for packaging success

Arrow

shopper research: how fear influences purchase decisions

Arrow

product testing: start ABC testing your product

Arrow

shopper research: packaging - mind hack your shopper

Arrow

product testing: is an in-home usage test the solution?

Arrow

shopper research: the paradox of choice

Arrow

putting sydney’s paddy’s market on the map

Arrow

coffee: enabling a strategic product call at lightning speed

Arrow

wild turkey bourbon wins with new pack design

Arrow

market segmentation: the Millennial mishap

Arrow

the beginner's guide to: animated concept testing

Arrow

co-creation: the secret to better packaging design

Arrow

packaging matters: new 'country of origin' food labels

Arrow

naming research: is your product name a winner?

Arrow

food trends: the reduced sugar rush

Arrow

chocolate trends: a sweet or sticky situation?

Arrow

it's 'go time' for convenience retailers

Arrow

online qual research: context collapse

Arrow