Become a Product Development Hero for your Brand
Over the years, we have heard from brands, founders, and entrepreneurs about the lengthy product development cycle and the inability of labs to get the formula just right. In some cases, we agree that labs can be challenged to deliver the products you are envisioning. On the other hand, formulators very often find it challenging to work with the directions provided by the Brand. The uniting sentiment is that product development can be lengthy and costly. More so, if you can’t quickly achieve a meeting of the minds.
Based on our work with various contract manufacturers, we have gathered a few best practices to help you ensure that the next product you develop is hugely successful.
Product Briefs
Many manufacturers will send you a product development form to complete. It is very important that this form is detailed as possible utilizing terms that are native to your industry. Stay away from ambiguous terms such as light, creamy, smooth etc. These are open to interpretation and can lead to samples that are far off from your expectations. Formulators do their best to translate your input, but they are not mind readers. For health and beauty manufacturers, describe details using texture, viscosity, format, color (provide Pantone references), thickness, absorption and appearance. If you are not familiar with your specific industry terms, take the time to learn them by using either online or hard copy publications.
Most product development submission forms include questions on key features, benefits, performance, benchmarks, target consumer, cost target, distribution. The distribution question is a very important one. If you think you may at one point expand to international markets, it’s good to let the developer know right away so the formula can be developed with those market restrictions in mind. Other items may include what you want in the product and what you don’t want in the product also known as the “no-no list”. Again, based on your planned retail distribution, they should know what kind of ingredient restrictions exist and that you may want to adopt in your products.
Be sure that you fill out the form completely. We have seen many briefs over the years that skip sections because of lack of knowledge to answer. Again, no information leads to interpretation by the formulator. If you are not sure of what the form is asking, either consult the lab directly or reach out to a colleague or mentor who can help you.
The more specific you are, the better chances you have of receiving a sample that matches or exceeds your expectations. Moreover, you are developing a great relationship with the lab which pays dividends on future projects.
The term GIGO (Garbage In / Garbage Out) applies beautifully here. Poor inputs results in poor samples and delayed timelines.
Benchmark Samples
Samples of similar products in the market that match the texture or key ingredients that you are looking for can be supplied to the lab along with your submission form and this can be quite helpful in speeding up the initial development process. However, there are some pitfalls that may complicate the development.
Selecting a benchmark with a retail price that is at least twice as much as your target retail price. More expensive products in the marketplace often utilize more expensive or higher percentage of key ingredients in their formulations. This can lead to the challenge of time for a formulator to work on many more experiments and you may need to compromise on cost to achieve the desired outcome.
Submitting a benchmark to the lab with a request to replace a key material or ingredient with your preferred alternative. This can be a simple ask and potentially very challenging since that ingredient may be needed to achieve a safe product for consumer use. It’s important to keep an open mind on recommendations from your formulator.
We recommend when submitting a benchmark, detail to the lab what you like and do not like about the benchmark. And what you would like to improve. If there are materials and/or ingredients you would like to include, you can simply include it in the submission with the understanding it may not be possible.
Cost of Goods (Target Cost) / Volume
Knowing the cost of goods and the amount that will be purchased is vital information as it determines whether your project is achievable before development begins. Nothing is more devastating than spending hours of effort on both sides and the project is cancelled because it exceeds your budget.
A simple calculation can help you get to your target cost. Example below
Letting your manufacturing partner know the anticipated volume will help them provide you with a more precise quote. Price is dependent upon volume.
R&D Kickoff Calls
Depending upon the manufacturer, they may suggest a call following your submission. They want to ensure they are interpreting your information correctly so they can prepare the first sample as close as possible to your expectations. The ideal number of revisions is 1, but no more than 2. The formulator’s goal is to get you the best first sample to only need minor adjustments (i.e. fragrance load or viscosity).
Show up to the call prepared (you are investing money in development). Being distracted by other deadlines or tasks at this time can lead to frustration from the lab and poor results on initial samples.
Be Humble. Essentially, you are hiring skilled engineers or chemists to bring your vision to life. If they are relaying facts to you on what is and is not possible, listen intently and ask them what they suggest. Outwitting your hired R&D team does not get project off on the right foot.
Ask questions – is your submission realistic from a cost perspective? Are there any other materials or ingredients they would offer better performance (yet still fit your brand’s ethos and cost target)? Do they have any other products in their existing library that might be a good fit for your brand’s future product launches?
At the completion of a successful call, the lab will get started on your project. One thing to consider. Once the lab gets started, do not change direction or provide updates to your product brief because of something you read that you feel would provide better results. This leads to confusion and possible delays to the timeline. Be confident in your convictions that you did extensive research on your initial submission. Keep this newly found information for the next smash hit in your collection.
Decision Makers
Obviously when you get your samples, you have key confidantes that will be testing the product and providing feedback. We recommend you keep the group to a limited number of individuals. You know what they say about too many cooks in the kitchen. Create a simple test form on the key attributes of the product. Once the results are compiled, you will draw conclusions on common themes. This is your feedback. Be careful that you do not take all feedback at the same level. Remember you cannot please everyone. Your measuring stick should be – does the product deliver on the product and your brand expectations? Filtering feedback is critical.
Once you feel you are close to finalizing the formula, you send it to a potential retail buyer to include in your assortment for the next season. The buyer doesn’t have very positive feedback. Before deciding to do an about face on this product, speak to the buyer. Find out what issues they are having and overcome the objections (remember you are the salesperson of your brand). It could be that the product is something they personally do not like. It doesn’t mean that it will not be successful for your target market. Sending this back to development derails the process for both you and the manufacturer. You may also incur additional costs from the manufacturer if they need to start from scratch.
Packaging
At the onset of your project, especially if you have a call with the R&D team, it is an excellent time to let them know what type of packaging you are starting to source (type and material composition). This is helpful for formulation for a couple of reasons (1) to ensure the formula will properly disperse from the package (2) to ensure they do not use ingredients that may have a potential compatibility problem. To be clear, this is only to provide direction to the lab. They are not responsible for functionality or compatibility issues that could arise. This is your responsibility to do the proper testing before it reaches the market. It has become a common practice to cut corners on the development cycle by sourcing the materials concurrent to formula development. This certainly helps with timelines, but it is very important to understand that this is a risk-based decision that you are making. If something goes wrong and the formula does not work well with your packaging it can become very costly. Wasted components or worse consumer complaints negatively impact your Brand’s reputation.
Overall, you are the final decision maker on your projects. Be sure to do your due diligence and consult with experts who can help you in areas where you may not be the strongest. If you need support with your product development project, don’t hesitate to reach out. We can schedule quick 30-minute sessions to answer questions as they come up.
If you need support with your product development project, don’t hesitate to reach out. We can schedule quick 30-minute FREE session to answer questions as they come up.