Stage model research in the UK fast moving consumer goods industry

Abstract

There is a large body of literature on the subject of organisational innovation, but little of this speci-fically addresses the fast moving consumer goods (FMCG) industry. In particular, none of the stage models presented in this literature adequately describes the incremental (lower) innovation processes that account for up to 98% of development projects in the industry. This paper consequently addresses the question: What is the sequence of main product development stages for incremental innovation processes in the UK FMCG industry? This question is answered by drawing on three associated case studies that encompass both retailer and manufacturer perspectives of the same process, against which the explanatory power of existing stage models in the organisational innovation literature are subsequently tested. These models are found wanting because this literature fails to recognise packaging development, which is a key feature of the FMCG industry. A new model is consequently developed. Finally, practical recommendations are made on process design for portfolio management, and four supplementary forms of representation are suggested to form a toolpack for mapping development processes. This is to analyse better their structure and dynamics as a precursor to an informed intervention as part of a process improvement exercise.

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