There is a new process revolutionising NPD to rapidly increase time to market, slash R&D costs, create multiple new products for less than the cost of a handful, and reduce company failure risk exposure from consumer adoption.
New Product Development should be the domain of the marketing management. This statement can be applied if you have a market leading brand in your category. The litmus test you need to apply must answer an emphatic, yes, to the following questions:
- Is your brand the most preferred or has a significant market share in your core category?
- Is your brand known by consumers outside of your core category?
If your company can answer affirmatively then you should consider your process for NPD and share responsibility with the marketing team.
Consider this strategy for your own business. The Innovation team is charged with maintaining your market leadership within your core category. The whole company is geared towards creating and delivering superior products and services and championing your brand’s market position. Significant R&D investment is channelled to keeping your core brand relevant and a leader. The risks are high too as not every new innovation is going to be a trending new success. In fact, a study by Neilson provided a painful statistic that 85% of FMCG new product developments failed at retail.
While your current Innovation team continues to invent within your core category, the marketing team is communicating with consumers to engage and encourage a brand experience. Charged with driving the communication to attract consumers and assert your brand market leadership in your category.
So now your marketing team needs to step into the NPD process but use a completely different system to grow market share, but this is on a much larger scale. Your tools are not in a laboratory, instead you will harness your greatest asset – your brand. As the marketing management you are now charged with NPD outside of your core category to introduce new consumers to your brand through the creation of a branded lifestyle.
Your process for this lifestyle brand extension? Licensing.
Competitive brands are now turning to licensing to create incremental sales, reduce NPD risk, increase brand engagement and brand impressions and globalise. Intellectual property commercialisation for brands is one of the least utilised marketing disciplines that a company can invest in. Comparatively, it is much less expensive than in-house innovation resource requirements and you partner with other market-leading brands, products and services for a mutually beneficial growth collaboration.
To successfully venture into licensing, control of your brand is mandatory. Untapped Agency offers Trademarks Attorney services and is a Licensing Agent for Brand Owners, Licensees, Manufacturers and Retailers. We extend iconic brands, copyright, fashion, designs, innovations and trademarks into innovative, new consumer products, services and promotions.