The PDMA Handbook of New Product Development

1.2. Critical Success Factors at the Project Level

1.2.1. Striving for Unique Superior Products

Superior and differentiated products—ones that deliver unique benefits and superior value to the customer—is the number one driver of success and new product profitability. Their success rates are reported to be three to five times higher than for "me-too," copycat, reactive, and ho-hum products with few differentiated characteristics. (Note that the "customer" buys the product; the "user" uses the product; the two are not necessarily the same, although often the terms are used interchangeably).

That differentiated, superior products are key to success should come as no surprise to product innovators. Apparently it isn't obvious to everyone: study after study shows that "reactive products" and "me-too" offerings are the rule rather than the exception in many businesses' new product efforts, and the majority fail to produce large profits!

NOTE

Superior and differentiated products—ones that deliver unique benefits and superior value to the customer—are the number one driver of success and new product profitability.

What do these superior products with unique customer or user benefits have in common? These winning products:

• Feature good value for money for the customer, reduce the customer's total costs (high value-in-use), and boast excellent price/performance characteristics

• Provide excellent product quality, relative to competitors' products, and in terms of how the user measures quality ...