New Product Development New Product Development for cosmeticsfor cosmetics

11/07/2011

1. Creativity Dreaming, thinking , new concept , challenge

2. Innovation2. InnovationProcess in which many sub-process combine to create a productcreate a product

3. QuantificationProduct is tested and trial until its strength and weakness are known inside out

4. OrchestrationAbility to create the same product perfectly Ability to create the same product perfectly time after time

Wh S N P d t S d d Oth F il d ?Wh S N P d t S d d Oth F il d ?Why Some New Products Succeed and Other Failed ?Why Some New Products Succeed and Other Failed ?

Success Factors:A good match between the product and market needs ( Marketing Concept)

Unique or superior product

Coordination between technical proficient and production efforts

M k t thMarket growth

Avoid high-price product with no economic advantage

A oid ma ket ith satisfied c stome sAvoid market with satisfied customers

Strong marketing communications and launch efforts

Market led idea with reasonable investmentMarket-led idea with reasonable investment

Why Some New Products Succeed and Other Failed?Why Some New Products Succeed and Other Failed?

Failure FactorsLack of a well-developed marketing concept and strategyLack of a well developed marketing concept and strategy

Product characteristics are poorly matched consumer needs.

Poor packaging timingPoor packaging, timing

Poor timing for production and marketing

Over Pricing and Under PricingOver Pricing and Under Pricing

Poor quality product

The most important factor for creating a new productThe most important factor for creating a new product is

To Have a clear product conceptp p

11 STEPS

FOR PRODUCT DEVELOPMENTFOR PRODUCT DEVELOPMENT

First Step: Marketing Concept

Environmental analysis and marketing research (Economy, Market Trend and Competitors)

p g p

Market Trend and Competitors)

Customers: What are their sufferings that you are targeting? How do they perceive a good product ? How big are theirHow do they perceive a good product ? How big are their problems-how much they are will to pay for? Where do they live and what is their life style?

Budget & Sales Forecast

Strategic Planning ( Advertising, Marketing )

Supported information by Client.Supported information by Client.

Marketing Concept will support the creation of product concept

Step 2 : Product Concept “ The Bible of a product in which the concept must be maintained

and referred”

Step 2 : Product Concept

and referred

Criteria for a success product

1 It t ll i t th ’ ff i1. It must alleviate the consumer’ s sufferings

2. It should convince consumer of product’s benefits and show how it helps with functions and/ or concept impacthow it helps with functions and/ or concept impact

3. Create the perceptive values and induce on consumer’s spending by being the right product for the right people and p g y g g p g p pat the right price and time

Supported information by Client and OEM

Clear product concept creates effective Chemical concept.

Requirement for Product Concept

Brand Name

q p

Product Category Skincare, Toiletries, Household, Baby, Facial Care, Hair Care

= necessary

Product Positioning (Premium, Standard, Economy)( , , y)

Bulk: Appearance, Fragrance, Texture, Viscosity, ColorTypes ( Cream Gel Cream Gel Lotion Paste etc )Types ( Cream, Gel, Cream Gel, Lotion, Paste….etc.)

Ideal Selling Price t ’ ff d bl tcustomers’ affordable cost

FunctionalPerceptive Values : Beliefs

Requirements for Product Concept

Packaging:

q p

Appearance, ColorTypes : Bottle, Tube, Spray …etc. (Glass, Plastic : PE, PET, PVC)Unit Carton, Outer carton ( .pcs./CTNSPacking Materials/sizes

C t ’ b h k ( C tit )Customers’ benchmark ( Competitor)

Usage:i /Time / How

Information of the country where the product is to be sold Temperature (Highest and Lowest)Cli tClimateSpecial Condition

St k M t ( H t k f d t ill b k t?)Stock Management ( How stock of product will be kept?)

Step 3 : Chemical ConceptAfter product concept, chemical concept is created by Research

and Development division based on:

p p

and Development division based on:

Product Concept

RM selection and good formulationRM selection and good formulation

Function Requirement : R/M Active Requirement e.g., Vitamin C, Pueraria mirifica etc.

Price

Ease of blending and product stabilityEase of blending and product stability

Chemical Concept is the product’s functions thats meet consumer’s requirementsq

Supported by OEM. ( R&D)

Clear product concept creates effective Chemical concept.

Step 4 : Packaging ConceptAfter finish on the product concept, the packaging concept is created based on:

p g g p

based on:

Marketing concept

Product ConceptProduct Concept

Knowledge & Experience on supplies e.g. MOQ

F ti l E f Att ti St blFunctional, Ease of use, Attractiveness, Stable

Compatible design with Bulk container ,cap, label

Outer box, Carton

Costs

Supported by packaging supplier. (Packaging)

Clear product concept creates effective Packaging conceptClear product concept creates effective Packaging concept.

Step 5 : Technical div. Client InterfacePresent chemical, and packaging concepts in relationship with the product concept by technical dept. to client for an approvalapproval

Step 6 : Client Technical div. Interface pFeedback or comments by client to Technical on thepresented concepts.p p

If client is agreed with presented concepts, then technical dept, will start to produce a samples from the formulation,L b T i l d l di t ith th k i d i fLab-Trial and also coordinate with the packaging design for client

S 7 OEM Cli I fProvided the sample of formulation Lab-Trial and

Step 7 : OEM Client Interface

packaging by OEM to Client for testing

Step 8 : Client OEM InterfaceFeedback or comments by client to OEM on presented sample and packaging for further adjustment. If client is agreed with presented samples and packaging then OEM is to proceed with thepresented samples and packaging, then OEM is to proceed with the development of the product

In the development process of the product OEM is to do:

Step 9 : Client OEM InterfaceIn the development process of the product, OEM is to do:

Perform Tests to evaluate the effectiveness of bulk and packaging whether it is compatible with each otherwhether it is compatible with each other

Test for bulk stability

Perception TestPerception Test

Production Process Tests ( bulk, Packaging, Mixing & Filling)

Step 10 : OEM Create BMRBMR creation

After all processes in the development are completed, then OEMp p p ,

( R&D) is to create BMR ( Batch Manufacturing Record)

BMR includes RM list, processing in details (such a temperature,BMR includes RM list, processing in details (such a temperature,

time, priority steps, homogenizeation, cooling, blending speed

Involved Departments in creating BMR are: Involved Departments in creating BMR are:R&D is to create BMR for Trial Batch to have process spect

Scale Up BMR

Production BMR (Equipment Assignment))

Planning is to check RM and PK on its availability and incoming date

QA tests on Quality Check, Physical, Function, Microbial Check

on both RM PK and Formula

d i i h dl iProduction is to handle on equipments,

Step 11 : OEM Production

ProductionProduction Production: mixing and filling of the product.

I l d S it ti Bl di E i t Filli M hiIncludes: Sanitation,Blending Equipment, Filling Machine,

Shrink Label, label, Sealing, Cartoning, Bar code, GMP

steps, documentation (ISO)

Quality control: checks the quality along the production line

Costing: Periodic assessment of costs compared with the standard costs

Planning

Effective Product Development Flow Chart

Planning

• Bulk

• PK

New Product Development Process

DevelopmentBMRProduction• PK

• Mixing & Filling

Batch Materials

Samples +

QABegin

Client Marketing Concept

Product Concept

Chemical Concept

TCp

PK + Storyboard

Packaging Concept

Client/ BDClient

= client interaction

Formulation Development Methodology for OEMFormulation Development Methodology for OEM

Formulation are based on theFormulation are based on the product concept and to create

h i l tchemical concept

Factors Related to

1 Recipe ( main ingredients) Product's function, Efficacy of the1 Recipe ( main ingredients) Product s function, Efficacy of the product, Consumer's suffering, Product Concept. Need to select RM, emulsifier, emollient, colour, etc.

2. Product Performance Formula Design, Active RM Packaging Design‘s

3 Texture Formula design, customer’s perception

4 pH Product's function, Efficacy of the product, RM, Packaging,

5 Preservative Type Raw Materials, Packaging, Regulation, Safety

6 Product Stability Product's function, Safety, Shelf Life

7 Type of Perfume Perception, Compatibility with formulation

8 PackagingCompatibility Safety, Shelf-life

9. Processing Product Consistency

Factors & Requirements

1. Recipe ( main ingredients)Requirement: customers’ affordable cost product positioningRequirement: customers affordable cost, product positioning

2. Product PerformanceRequirement: customers’ affordable cost product concept targetRequirement: customers affordable cost, product concept, target group ( male or female, age), competitors in the market, customers’ benchmark, customers’claim(s), in-use test, brand name product positioningname, product positioning

3. Texture (less viscous or highly viscous or paste)Requirement: customers’ benchmark packingRequirement: customers benchmark, packing materials/sizes/product appearance

4. pHRequirement: packing materials, customers’ benchmark

5. Preservative TypesRequirement: packing materials, challenge test results, clean packaging

6. Product Stability6. Product StabilityRequirement: customers’ benchmark, consumer product testing

7. Type of Perfume ( how strong)R i t t ’ b h k d tRequirement: customers’ benchmark, consumer product testing

8. Product/Packaging CompatibilityRequirement: in-use test, consumer product testing

9. ProcessingRequirement: equipment, raw material variations, mixing temperatures, mixing speeds, mixing time, type of mixer/blade, material construction of the machine to be used

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