#1. PRODUCT DEVELOPMENT METHODS for PRIVATE LABELS

Deliver critical success factors or rapidly perform all necessary actions and steps - what is the most important in Product Development for Private Labels?

Answer “both” seems the most obvious but may not be entirely right… This article explains different product development methods that Private Labels can mix to deliver new products in the market rapidly and at the highest quality.  

Private Labels take a unique position and represent in the market in 2 versions:

👉 a physical object: a product that goes works through the supply chain and gets used by the client

👉 a virtual object: product page that interacts with a client in the eCommerce channel to enable the sale

To efficiently manage both product objects, a Private Label team can mix development practices from the traditional CPG Industry and development methods from the Tech industry. This article reviews the most relevant approaches that may apply in both scenarios.

Development Methods of Technology Industry

Digital representatIon of Private Labels today is not just about ads and banners. Most advanced Private Label business should manage an advanced IT solutions infrastructure. That may include product stores on different platforms, websites, chatbots, mobile apps, social media pages, digital tools to research consumer demand online, etc. An agile Private Label Team can benefit from deploying tech methods of product development in digital.  

In technology development, there are three main methods to create new products. These methods get very well standardized across the industry:

💻 Scrum

Scrum is an agile development practice based on the SPRINT method - quick execution runs of 1 to 4 weeks. Each sprint focuses on completing a list of actions (backlog) and operates by mandatory meetings: 

⭐ “Planning Meeting” -  to scope and plan actions before the sprint (PLAN)

⭐ “Kick-off Meeting” -  to set goals for the project team at the beginning of the sprint (START)

⭐ “Stand-up Meeting”  - daily progress review to control results during the sprint (CONTROL)

⭐ “Retrospective Meeting” - final review of actions completed in the sprint vs. plan, moving open tasks to the next sprint) (REVIEW)

“Product backlog” is the full set of actions to deliver the entire digital product (e.g., launch website, new online store, Facebook Page, etc.). In contrast, “Sprint backlog” is a list of more specific actions planned in the sprint’s controlled period (develop designs, create social media content, complete integrations, legal steps, etc.). 

The scrum method is useful for managing complex projects associated with a cross functional collaboration, different expertise, and actions that are not clear upfront.

💻 Kanban

Kanban is an agile development practice based on the BOARD method - a visual representation of all actions in the product launch plan. The Product Development Board typically includes three sectors:

⭐ “To Do” - actions planned for execution, but not yet started. 

⭐ “In Progress” - actions that are started and not yet complete.  

⭐ “Done” - and cards of individual actions. 

Action Cards represent each action on the board. Cards move through sectors according to active status until completion. 

The Kanban method helps manage simple projects within a small project team and a predefined set of actions. An example could be the launch of a new product account on Instagram.

💻 Waterfall 

The waterfall is not an “agile” method that tracks the parallel development of multiple product features—a right solution for rapid creation of the standard, low-risk digital features with an exact final result.

An example could be a parallel launch of product pages (listings) at multiple regional Amazon Marketplaces.

One of the best things about Tech development methods is the availability of various software to support any development need. Private Label owners just need to decide which one is the most suitable for the team.

Development Methods of CPG

While putting a significant effort in building a digital infrastructure and virtual object of the product, any Private Label needs to keep a permanent focus on the physical product itself. New product launches and continued development of existing portfolios in quality and profitability requires the implementation of advanced product development practices in the Private Label Team.

📦 Stage & Gate

The primary development method used in CPG is a method of Stages and Gates. It always follows one common logic but is not standardized as much as methods in Tech. Companies usually adjust the number of Stages and Critical Success Factors of the Gate based on internal needs. I had experience with processes containing 4, 5, and 9 Stages, but the most common approach would include five: 

⭐ Idea finalization

⭐ Prototype finalization

⭐ Product finalization

⭐ Start of production 

⭐ Post-launch review

The number of individual actions will vary depending on the complexity of the task. Actions only matter for time and resource planning but do not dictate the Stage completion. 

Each stage can complete only upon the achievement of specific requirements - Critical Success Factors, which are typically set-up through Desirability (consumer attractiveness), Viability (business profit), and Feasibility (production capability) lenses. Acceptance criteria are set-up, reviewed, and controlled at the Gate meeting, followed by each stage. The project can pass to the next Stage when meeting all Success Criteria or returning to the current Stage for additional development.

📝 In conclusions

The Tech industry's primary focus is the amount of work to perform most efficiently. That is why all development methods get optimized for completing particular tasks and activities as fast as possible. 

In the CPG industry, each development stage's key focus is on achieving a specific objective called Critical Success Factor, typically qualitative. Same actions may repeat again and again until the result get achieved. 

Successful and forward-looking Private Labels can benefit from both concepts: 

☝️ use Rigorous Stage & Gate to develop high-quality, profitable products, 

☝️ use Agile product development methods from TECH to connect with consumers online and rapidly develop successful client interaction tools. 

Sincerely,