The three levers of the superior product engine.
The primary function of R&D at leading CPG organizations is to innovate and consistently deliver superior products to consumers, ensuring year-over-year accretive growth. However, the unprecedented pace and magnitude of regulatory change is pushing R&D leaders toward an existential moment requiring a reimagined innovation process. That is so that design for compliance and sustainability are foundations that ensure product benefits and claims align with consumer needs and stringent regulations, such as the EU Green Deal and MoCRA.
In this new reality, managing product markting claims in the CPG industry has become increasingly complex. These claims are the lifeblood of marketing and sales but place incredible burdens on R&D teams to deliver. Product claims need to be traceable, substantiated, and managed all the way through the supply chain. This means ensuring processes and systems are in place to systematically track and leverage product compliance and sustainability information in innovation and finding ways to free up limited resources to meet this challenge.
R&D leaders who can optimize the value and flow of product claims will deliver more ROI to the company. Ensuring R&D can deliver new benefits to marketing without changing a product (commercial innovation) maximizes market speed and unlocks critical resources to focus on higher-value incremental and disruptive innovation.
1-6months
6-24months
2-10years
Bain & Co., Consumer Products Report 2024: Resetting the Growth Agenda
Maximizing commercial innovation and accelerating incremental innovation frees R&D to focus on high-impact disruptive innovation, while ensuring consistent growth and ROI.