by Karla Brandau, CSP

What do Swoops, Carmel Kisses and Reese’s White have to do with innovation and profits?

 Students of the “S” curve know that when a new product or process is introduced, the effort expended is greater than the immediate performance and payoff. With continued effort, however, the performance and payoff improve and often results seem effortless.

A study of the “S” curve phenomenon also yields the knowledge that performance and payoff diminish as the product loses its newness, grows old or becomes commonplace.

Wise students of the “S” curve know it is at the middle of the curve – when profits seem effortless -- that care must be taken to avoid complacency. Armed with the knowledge that profits will tail off, smart individual contributors, managers and executives start looking for creative products that will start new “S” curves.

That is how Swoops came into existence. Hershey Foods wanted to innovate from the Almond Joy Brand. They came up with Almond Joy Bites, knowing that people who love the Almond Joy bar would buy the Almond Joy Bites, at least once.

They knew me well. I purchased the Almond Joy Bites, loved them, and became a steady customer. Imagine my disappointment when a manager at Hershey Foods told me that the numbers were not steady with the Almond Joy Bites and they were going to drop them in favor of a new, innovative product: Pringles potato-chip-shaped Swoops.

They knew that a product not performing at expected levels must be discontinued before it becomes a drain on profits.

Hershey Foods keeps from becoming obsolete by constantly monitoring customer-buying numbers. Parallel to the monitoring is research and development into innovative products…who would have thought to take the Almond Joy Bar and give it a potato chip shape? However, the strategy works. Profits from the Swoops Almond Joy and other flavors are on an upswing.

Carmel Kisses launched in March of 2004 were innovative as well. Kiss lovers would reach for the familiar chocolate Kisses, see the new Carmel flavor, and pick up a package of them as well.

Reese’s White took the much-loved Reese’s Peanut Butter Cup and changed the outer layer to white chocolate, not milk chocolate. With this new “S” curve, they could capture not only peanut butter lovers, but white chocolate lovers, too.

Lessons Learned

From a profitability and productivity viewpoint, nothing is a bigger time waster than continuing to pore efforts into a product, process or service that is accelerating toward obsolesce or that the marketplace does not want in big enough numbers to make it profitable.

Obsolescence is a stealth bomber…undetectable unless you have the right review processes. As you seek to uncover obsolescence and seek to innovate, the right equipment to guide you in the process includes these points: 

1. Sponsor brainstorming and creativity sessions when the product is doing well. Start looking for the new angle or new curve before the product or service has peaked.
2. Ask the question, “How can this product or service be changed to give greater customer satisfaction or to become a better solution to the customer’s problems?”
3. Survey your customers and ask them how they would change the product or service.
4. Create a culture that honors ideas and supports risk-taking. Reward workable suggestions in tangible ways even if the reward is as simple as tickets to the new theater show in town.

    

5. Be the champion of the new idea or convince a manager to take ownership of the huge potential offered by the idea. To move the good idea into actual profits, the idea must have an owner to see it through the process of birth, development and natural maturation.

Fight Obsolescence

Fighting obsolescence is often a painful process. In most organizations, you are going up hill and fighting a battle against many coworkers who are satisfied with the status quo. In addition, the process is made more painful as you have to let go of a product that you birthed and nurtured as much as your amazing child or beloved pet.

I had the extraordinary experience of attending my 20-year reunion. One of my classmates had not changed one iota since the day we graduated which said a lot about her weight and not much about her hair.

Before your hairstyle is outdated, your profits drop or obsolescence puts you out of work, make a conscious effort to innovate with your own Swoops, Caramel or Reese’s White. Even though I still like the Almond Joy Bites the best, I understand the Hershey philosophy and process. I challenge you to make it work for your organization.

Tactical Tips

1. Sponsor brainstorming sessions before the product peaks.
2. Ask questions about how the product could be changed to better compete in the marketplace.
3. Survey your customers.
4. Create a culture that honors ideas and supports risk-taking.
5. Be the champion of the new idea.

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