5 Big Research & Development (R&D) Challenges: How Ideal Product ‘Attributes’ Maximise Innovation Success

In today’s rapidly changing Fast Moving Consumer Goods (FMCG) landscape, innovation has become more challenging than ever and the pressure to innovate has never been greater. According to recent analysis from the Boston Consulting Group (BCG), the FMCG industry has sharply underperformed compared to most other industries since 2013. Fundamental changes that have influenced this decline are new technologies across the value chain, a proliferation of upstart competitors, and the growing power of key retail customers. The companies that continue to succeed, according to the research, share a key strategy: they ‘drive consumer-centric innovation and engagement.’

In this blog, we will explore five major R&D challenges that often hinder product success, and how we can overcome them using our Ideal Product Model (IPM), a consumer-centric framework for breakthrough product development.

The 5 Big R&D Challenges

From discussions with our clients, we have identified five critical R&D challenges that frequently detract from product success:

1. Compliance Challenge: How under-compliance of new products can affect meaningful benefit delivery
2. Confusion Challenge: How the proliferation of new products in the market can create uncertainty and undermine trust in product performance
3. Sustainability Challenge: How new sustainable solutions often miss the mark on core category performance requirements
4. Purpose-led Challenge: How purpose led brands have been accused of green-washing, and lacking meaningfully transparent processes,
5. Cost of Goods (COG’s) Challenge: How the cost-of-living crisis influences product development, as consumers are less likely to ‘gamble’ on new product trials

So, how do we enable our R&D teams to drive consumer-centric innovation while also facing these five challenges?

The Ideal Product Model (IPM) Blueprint 
At Untapped we use an Ideal Product Model, or ‘IPM Blueprint’ to create a consumer-centric framework for breakthrough R&D product development. It guides the design of new products based on consumer needs, just like an architect uses a blueprint to guide the design of a building based on future inhabitants’ needs (see Figure 1).

Figure 1) Copyright © 2024 Untapped Innovation Consulting LLP. All rights reserved. 

The first layer of the R&D ‘IPM Blueprint’ (see blue and pink squares in Figure 1) focuses on understanding what the consumer will hire the product to do – this is known as the Jobs to Be Done (JTBD) that will deliver the required user benefits. Once the “jobs” are defined, it is then critical to focus on the ‘green’ level in the ‘IPM Blueprint’ which is the attributes and features section. Attributes create a vehicle for ‘dialogue’ during product use, designed to engage the user, noticeably communicating that the critical jobs are being done. 

Well-designed attributes and features are the characteristics (often sensory experiences – sight, touch, smell, taste, sound) of great products that help generate trial, repeat, and loyalty. By focussing R&D time and resources on creating a clear ‘IPM Blueprint’, with an understanding of the Jobs to Be Done and the ‘dialogue’ required from attributes and features, teams can address these five big R&D challenges effectively and generate breakthrough business results with products that truly engage and communicate a range of meaningful benefits while in use.

Addressing the 5 Big R&D Challenges with the IPM Blueprint

1. Compliance Challenge:

Issue

Under-compliance of new products can reduce the delivery of intended benefits. This can be acutely observed in the consumer-healthcare sector where many important active ingredients lack a specific sensory experience or noticeable ‘reward’ during or after use. Contrast this with the toothpaste sector, that creates more rewarding experiences by being healthy-tasting, foamy and fresh; attributes that communicate that the product is working to the consumer.

Recommendation

Include ‘healthy and rewarding’ attributes that deliver experiences to communicate noticeable health benefits and drive compliance. As Andrew Ferebee states, “Most people fail to adequately reward themselves for taking action on a beneficial habit” (Forbes, 2018).

2. Confusion Challenge:

Issue 

The proliferation of products, especially in beauty, can create uncertainty, denigrate trust in product performance, and confuse consumers. As Sophie Pitt states, “As beauty continues to grow, so does consumer confusion.” (Beauty Matter 2023). In contrast, many toy brands like Lego avoid this by creating a dialogue of certainty and trust while using the product. They do this with an offer of clear sensory cues, by being audibly satisfying (snapping-sound of pieces fitting together), easy-to-understand (visual instructions), and consistent and familiar (feel of the Lego shapes).

Recommendation

Develop ‘certainty’ attributes to build trust and clarity in product performance. These attributes should reassure users that the product is performing as expected, which is especially important in confusing, ever-changing categories.

3. Sustainability Challenge:

Issue

Many new sustainable products fail because they do not meet core category performance requirementswhich then impacts re-sale and future business potential. Consumers, asstated in the Harvard Business Review 2024, only prioritise sustainability if the product first solves their core needs.

Recommendation

Include ‘sustainability + core category’ attributes to communicate eco-credentials and do not compromise on performance. For example, leading fabric and home care brand Ariel has successfully executed ‘leave your clothes brilliantly clean, even in a cold wash’ by creating a 

dialogue of obvious in-use cleaning performance e.g. by being visually foamy during a 30-degree cycle, fragrant (scent during and after use), and visually clean (clothes). While sustainable products are critical for future R&D, performance related attributes tell the user that the core category performance requirements are being met or exceeded.

4. Purpose-led Challenge:

Issue

Purpose-led brands are increasingly accused of green-washing and are often criticised for lacking transparency in their product design credentials, when consumers today demand real transparency. As Michaela Jefferson noted in Marketing Week, the hype around purpose is being met with increasing scepticism‘Only a few years ago, purpose was touted as the holy grail for brands hoping to engage with an increasingly environmentally and socially conscious consumer audience. But a lot has changed over the last 12 to 24 months’.

Recommendation

Include ‘purpose-led’ attributes that clearly communicate brand values, purpose, and reduce risk of perceived green-washing. For example, Tony’s Chocoloney, whose turnover has hit £40 million ($50.5 million) and is currently the fastest growing confectionery brand in the UK, creates a meaningful dialogue with people by building their ‘impact’ position into the specific product design attributes e.g. by being unequal (unequally sized chunks), visually impactful (bold pack colours), and transparent (clear versioning).

5. Cost of Goods (COG’s) Challenge: 

Issue

The cost-of-living crisis makes consumers hesitant to ‘gamble’ on new product trial and is therefore heavily influencing product development requirements. Nowhere is this seen more than in the food and beverage sector, where ‘more food and drink businesses have collapsed in the first six months of the year (2023) than in the whole of 2022’, (Kroll advisory report quoted by Ed Devlin, The Grocer 2023). 

Recommendation

Include ‘highly noticeable’ attributes that communicate critical new benefits (JTBD) and justify the product’s value, even during tough economic times. Brands like Walkers and Warburtons have managed to drive trial by introducing clearly noticeable attributes, like health benefits or eco-friendly packaging, as Megan Tatum states ‘though NPD pipelines may have slowed, it wouldn’t be accurate to say they’ve stalled entirely. There have been a number of high-profile launches in the past year, be it Evian adding fizz to its portfolio for the first time in January 2022, Walkers rolling out its first non-HFSS crisps range in March, or Warburtons targeting health-conscious shoppers with its paper-wrapped Seeds & Grains loaves in April’. (The Grocer 2023)

These specific product design attributes e.g. by being fizzy (Evian), a source of fibre / low sugar-salt-fat (Walkers), and paper-wrapped (Warburtons) are each communicating critical JTBD done for the people who are buying these new products amidst a cost-of-living crisis.

In conclusion…

Well-designed attributes and features can generate trial, repeat purchase, and loyalty. Dedicating R&D time and resources to developing an ‘IPM blueprint’ with a clear understanding of the JTBD and the communication and ‘dialogue’ required from attributes and features, enables teams to overcome these 5 big R&D challenges.

It is also worth reiterating that effectively communicating these product attributes across all touch-points is vital for driving awareness and trial. While this blog focuses on the benefit of Ideal Product Model Blueprints, the role of Story is equally important, which will be covered in another blog. Without a Story, even the most consumer-centric product could be lost in a crowded market.

If your team is facing similar challenges in product development, Untapped’s Innovation Gym provides the tools and frameworks to help you design consumer-centric products that overcome the hurdles discussed here. Visit Innovation Gym to learn more about how we can support your team in building a high-quality Ideal Product Model Blueprint that maximises your innovation success, or reach out to me directly at deirdre.walters@untappedinnovation.com.

Snapshot Guide: Driving Consumer-centric Innovation in FMCG