New product development process of nestle
Nestle, a multinational food and drink company, has a rigorous new product development (NPD) process to ensure the success of its new products. Here's an overview of Nestle's NPD process:
1. Idea Generation: Nestle's NPD process starts with idea generation, where employees, customers, and partners are encouraged to submit ideas for new products. This can come from various sources, such as market research, consumer feedback, and internal innovation initiatives.
2. Concept Development: The idea generation phase is followed by concept development, where the submitted ideas are evaluated and refined. This involves identifying the key benefits, features, and competitive advantages of the proposed product.
3. Market Research: Nestle conducts market research to validate the concept and identify potential customers, competitors, and market trends. This helps to refine the product concept and identify potential barriers to entry.
4. Product Development: The product development phase involves creating prototypes and testing them with consumers. Nestle uses a combination of internal and external resources, including suppliers, contract manufacturers, and co-development partners.
5. Sensory Evaluation: Nestle conducts sensory evaluations to assess the taste, texture, and overall consumer acceptance of the product. This helps to identify areas for improvement and refine the product formulation.
6. Packaging Development: The packaging development phase involves designing and testing the packaging for the new product. This includes evaluating the packaging's functionality, sustainability, and consumer appeal.
7. Regulatory Compliance: Nestle ensures that the new product complies with relevant regulatory requirements, such as food safety and labeling regulations.
8. Pilot Production: The company produces a small batch of the new product to test its manufacturing process and quality control procedures.
9. Commercialization: The final phase involves launching the new product in the market, which includes marketing, sales, and distribution strategies.
10. Post-Launch Evaluation: After the product launch, Nestle conducts post-launch evaluations to assess its performance, gather consumer feedback, and identify areas for improvement.
Key Factors in Nestle's NPD Process:
- Consumer-centric approach: Nestle's NPD process is centered around understanding consumer needs and preferences.
- Collaboration: The company encourages collaboration between different functions, such as R&D, marketing, and sales, to ensure a holistic approach to product development.
- Innovation culture: Nestle fosters an innovation culture within the organization, encouraging employees to think creatively and take calculated risks.
- Speed and agility: The company aims to develop and launch new products quickly, while maintaining quality and ensuring regulatory compliance.
- Global perspective: Nestle's NPD process considers global market trends, consumer preferences, and regulatory requirements to ensure that products are successful across different regions.
By following this structured NPD process, Nestle is able to develop innovative products that meet consumer needs and drive business growth.