CPG Product Innovation

A prominent consumer packaged goods (CPG) company with a wide portfolio of household and personal care products experienced stagnant market share due to rising competition and shifting consumer preferences. Observing a growing trend toward sustainable, health-conscious products, the company sought to capture this market segment by launching an innovative product line that would appeal to these values. They partnered with OILIFINA Consulting to design, develop, and launch this new line effectively.

Objectives

• Market Share Growth
  The primary objective was to capture a 15% increase in market share within the first year of launch. By tapping into the growing demand for sustainable and health-focused products, the client aimed to attract a broader audience and establish a foothold in a high-potential market segment.

• Consumer Engagement
  The new product line needed to resonate with emerging consumer values, particularly around sustainability and health. The goal was to develop a range of products that aligned with these values to foster stronger brand loyalty and increase repeat purchases among environmentally and health-conscious consumers.

• Operational Efficiency
  OILIFINA Consulting was tasked with streamlining the client’s product development process to reduce time-to-market and optimize resource utilization, ensuring that the new products could be launched swiftly and efficiently in response to market demand.

To achieve these goals, OILIFINA Consulting applied a structured, multi-stage approach covering market analysis, product development, and a strategic launch.

• Market Analysis
  The project began with comprehensive market research to identify consumer trends, preferences, and existing gaps:

• • Trend Identification: OILIFINA analyzed industry trends, focusing on sustainability, natural ingredients, and chemical-free alternatives that were popular among younger, eco-conscious demographics.
  • Competitive Landscape: The team evaluated competing products to identify areas for differentiation, assessing market share, price points, and key selling features of existing sustainable and health-oriented products.
  • Consumer Segmentation: Using focus groups and surveys, the consulting team gathered data on consumer priorities and values. Insights indicated strong demand for eco-friendly, sustainable packaging and ingredients, with many consumers willing to pay a premium for products aligned with these values.

• Ideation Workshops
  OILIFINA facilitated ideation workshops with cross-functional teams within the company, including marketing, R&D, and supply chain departments:

• • Collaborative Concept Generation: These workshops allowed team members to brainstorm product concepts that aligned with market trends and consumer values. Ideas included biodegradable cleaning products, chemical-free personal care items, and sustainably packaged goods.
  • Value-Added Features: OILIFINA encouraged the team to explore unique product attributes, such as reusable packaging, natural fragrances, and plant-based ingredients, to set the product line apart from existing offerings in the market.
  • Customer Value Proposition: Each concept was developed with a clear value proposition to ensure it met consumer expectations, providing a strong foundation for brand messaging and marketing.

• Feasibility Studies
  After ideation, each product concept underwent a rigorous feasibility analysis:

• • Technical Viability: R&D teams assessed the technical feasibility of using natural ingredients and sustainable materials. This included testing for quality, shelf-life stability, and adherence to safety standards.
  • Financial Feasibility: Financial modeling helped determine production costs, expected margins, and potential ROI. OILIFINA’s financial assessment ensured that the products could be produced at scale without compromising profitability.
  • Strategic Alignment: Each concept was reviewed to ensure alignment with the company’s brand identity and long-term growth goals, prioritizing products that enhanced the company’s image as a leader in sustainability.

• Prototype Development and Testing
  OILIFINA led the development of product prototypes to test key product attributes with target customers:

• • Prototype Testing: Initial prototypes were shared with selected focus groups, and feedback was collected on factors such as packaging design, scent, usability, and perceived value.
  • Iterative Refinement: Feedback from testing informed adjustments to product formulations and packaging. For instance, packaging was modified to be both aesthetically appealing and environmentally friendly, using biodegradable or recyclable materials.
  • Consumer Validation: After final adjustments, additional testing confirmed that the products resonated with the target audience, providing confidence that they would be well-received in the market.

• Go-to-Market Strategy
  With a finalized product line, OILIFINA crafted a comprehensive go-to-market strategy:

• • Targeted Marketing Campaigns: Leveraging insights from consumer segmentation, the team developed digital marketing campaigns that highlighted the eco-friendly and health-focused benefits of the new products. Social media, email campaigns, and partnerships with eco-conscious influencers helped create awareness and build anticipation.
  • Retail Partnerships and Shelf Positioning: OILIFINA facilitated partnerships with major retailers to secure prominent shelf space and endcap displays, enhancing product visibility in stores. Additionally, special in-store promotions encouraged initial trials and provided an opportunity for customers to discover the new line.
  • Pricing and Promotion Strategy: The products were priced competitively, with introductory promotions to drive initial sales and encourage adoption. Seasonal campaigns and bundling strategies were also implemented to maintain momentum.