Product Development From Lab to label claims

1. Product Development From Lab to label claims Kevin Tibbs Co-Founder March 2009

2. The Product Development Process

3. HITS!

4. MISSES?

5. Product Development: The Process • Idea Generation • Screening • Concept Development • Business Analysis • Product Development • Market Testing • Commercialization DESIGN REVIEW

6. Product Development:Variables • Size of organization • Innovation vs. copycat • Complexity • Budget • Timing

7. Product Development:Size • Innovation • Communication • Speed to market • Fidelity of process • Credibility

8. Starting the Process Ask yourself, what is being made and why? • What does the customer want? • Physical requirements • Performance requirements • Regulatory requirements • Who are the competitors? • Are there any benchmarks?

9. Focusing Our Efforts More effective Smells great Safe for my kids Makes me feel better Cheaper than other brand Can use it anywhere Easier to use MARKETING GROUP

10. Development Product Description Project Overview Indications & Claims Price Point Features & Benefits Requirements

11. Development FORMULA

12. The Lab’s Contribution Project Report For Our Blockbuster Product Contents: Breakthrough Formula * Manufacturing Guidelines * Quality Controls (Specifications) * Packaging Recommendations * Strong Support Data & Claims Substantiation

13. Importance of Claims • Direct communication to customer • Break through clutter of competitors • Differentiation • Lend credibility • Company image and responsibility

14. Types of Label Claims

15. Challenges from Lab to Label • Manufacturing • Multiple locations, different equipment, water quality • Packaging • Compatibility • Markets Served • International vs. domestic, shipping considerations • Marketing • Literature and claims • Outsourcing • Development and/or manufacturing

16. Successful Product Development • Accurate input to the lab • Meeting the targets in the lab • Providing necessary informational output from the lab • Clearly communicating claims on the label • Claims are supported and relevant

17. Case Study:BETTER LIFE A new company, A new line of household cleaners

18. Case Study: Glass Cleaner Project Overview Product Description • New Company • Fun, hip, innovative • Responsible & trustworthy • Fresh look in household cleaners • Different type of cleaner • Household Cleaner • Glass cleaner • Green category • Upscale product • SAFE!

19. Case Study: Glass Cleaner • Convenient product • Easy to use • Scent free / Clear • Fun look • SAFE! • Suggested retail price • Domestic line • Shipping considerations • Innovative packaging • Manufacturing • SAFE! Features & Benefits Price & Requirements

20. Case Study: Glass Cleaner • Focus on 3 P’s • Improvement Necessary • Need for Differentiation • Raise the standards Indications & Claims

21. Case Study: Lab “Inputs” • The product development “inputs” for the lab • Performance • Match or outperform traditional cleaners • Non streaking formula • Fast drying • Environmental • Green formulation (plant based, natural, green chemistry) • No pollution. Air/Water/Soil • Biodegradable • Safety • Eliminate hazardous raw materials • No fumes, dizziness, skin irritation • No fear of using around children and pets

22. Case Study: Development • How the lab met the input targets • Performance • Powerful formula that is effective, fast-drying, non-streaking • Environmental • Excellent biodegradability • Ingredient list focuses on plant-based surfactants • No petroleum-derived ingredients • No VOCs • Safety • Non irritating formula • Eliminated common hazards • Zero VOCs, ethoxylates, fragrances • Eliminated dyes and SLES/SLS

23. Case Study: Lab “Outputs” • Lab “outputs” to marketing and manufacturing team • Formula • Stability data • Package compatibility • Process • Quality parameters • Testing to support claims, safety, and performance requirements

24. Case Studies Case Study: Label Claims Performance Claim Performance Claim Safety Claim Environmental Claim Performance Claim Safety Claim Environmental Claim Environmental Claim

25. Claim Substantiation - Performance • Streak-Free • Consumer Specialty Products Association (CSPA) DCC 09 categories: soil removal, smearing, and streaking. • Fast Drying • Modification of ASTM method

26. Evaluation of “Fast Drying” Claim Evaporation Rate Modified ASTM method

27. Claim Substantiation - Environmental • Biodegradability • OECD method 301 • Safe for waterways and marine life • ISO 7346.2 for fish and in 40 CFR 797, Subpart B for other aquatic organisms • Free of VOCs, ethoxylates, and petrochemicals • California Air Resources Board Method 310 • Green cleaner • Undefined • Qualitative claim

28. Biodegradability 60% Cutoff OECD Readily Biodegradable = >60%/10 days OR Biodegradable = >60%/28 days

29. Claim Substantiation – Safety • Non-irritating formula • EpiDerm™ In Vitro Skin Irritation Measurement • Gluten free • r-Biopharm FAST Gliadin test (an ELISA test) • Non-toxic • Undefined, qualitative. Open interpretation.

30. Non-Toxic: A Qualitative Claim • Free of fragrance & dyes • No solvents or VOCs • No carcinogens, reproductive hazards, or otherwise hazardous ingredients • Raw materials scanned against databases • Int’l Agency for Research on Cancer (IARC) • National Toxicology Program (NTP) • U.S. Environmental Protection Agency (EPA) • Occupational Health and Safety Administration (OSHA)

31. The Results "We picked BETTER LIFE because it really works and it's different than other green cleaners. We actually use it to clean our own store, too."–Krista Durlas, Spokesperson for Whole Foods (Town & Country, MO location) “I’ve been using I Can See Clearly, WOW! for over a month and it’s the best glass cleaner I’ve ever seen – literally. No streaks at all. And it lasts. Most window cleaners get a haze after a day or two, but this seems to just last and last. It also does a really nice job on martini glasses.” --Kathy T.