Focusing Product Costs and Features on What Consumers Want
Ocean Spray embarked on a journey to future-proof their business; bringing DTV theories and frameworks into their innovation process. They engaged GO Advisors as experts in this space to work alongside the Ocean Spray Innovation team. GO Advisors created a multi-year framework building DTV capability into their innovation culture. This multi-year plan laid out a clear strategic path for Ocean Spray while delivering quick wins demonstrating the power of Growth Optimization.
Unlocked Organizational Partnership
Through the Growth Optimization process of bringing facts to the conversation, prioritizing what consumers value and are willing to pay for, and defining the competitive environment, we identified long-standing specifications that constrained sourcing and inflated costs. Deeper dialog between marketing, consumer insights, product development, and sourcing unlocked the organization to accept modifications to these once closely head requirements focusing them on delivering what the consumer wants rather than what the organization assumed was necessary.
Results: +15% Reduction in COGS
From this engagement Ocean Spray resourced short-term and long-term programs improving the experience for current consumers, acquiring new consumers, and improving margin. These enhancements include flexible manufacturing processes, refined specifications, improved sustainability, identification of new claims, and a +15% reduction in COGS.
I appreciate that – particularly at the beginning of the process – GO Advisors challenged us to think bigger and get the most out of this process. I like the approach of showing us what was possible at an organizational level, what the total cost savings could be, and what our team was capable of doing, followed by enabling and allowing the team to figure it out ourselves instead of “giving us the answers.” Once again, this went a long way towards spreading the feeling of true ownership of the process, vs. feeling as if we were carrying out someone else’s ideas.
Steve Charles - Brand Manager DTV