Our very own Mary Shmidt illustrates a point I touched on in a recent BrandBuilder post with her expose on Kraft's "innovative" Grate It Fresh parmesan: Sometimes, innovation isn't. And coming out with "new and improved" products that are neither new nor improved can sometimes be little more than a shot in the dark. Case in point: Kraft's new "Grated Fresh" parmesan cheese. Fresh parmesan and a grater, all in a convenient bag.

Cool idea? Lame idea? Well, I guess it depends who you are.

Per Mary:

Kraft is at it again, pitching their mass-produced product in a “new! convenient, improved” form. Which, of course, isn’t inherently a bad thing to do – businesses are supposed to make money, after all. The problem is that – well – there isn’t a problem. The people who really want freshly grated cheese aren’t going to buy this. They want – ahem, sniff! – real cheese.

Bottom Line: Kraft is pitching a “solution” their target market doesn’t want. (...) I don’t even want to think how much money Kraft poured into the “R&D” for this way over-packaged, under-desired product. Ouch.

“But wait!” you say, “What about the people who care more about convenience than taste?” Well, they’ll just grab a bag. Who has time to grate?

Me? I’ll keep buying the green can stuff as well as grating my own using real cheese and a cheap old hand grater.

Mary makes some good points: That stuff in the green can, it isn't bad. And it's convenient (as in fast and doesn't make a mess). I can also buy shredded parmesan in bags. If I realy wanted to enjoy the fresh flavor of just-grated parmesan, I would hop on over to a Whole Foods or other food store that carries the real thing, and grate it with my trusty old grater. I don't think I would waste my money (and my time) on Kraft's product.

But then again, neither Mary nor I may be Kraft's target customer when it comes to this particular product. (My question then, is "who is?" Either you're a grate-your-own-parmesan type, or you aren't. And if you are, it stands to reason that you enjoy real cheese.)

I can't help but wonder if Kraft's research uncovered a subculture of closet cheese-graters just waiting for a more accessible, mass-produced cheese product like this one to bring them out of the open.

Maybe this is a gateway cheese-grating product. One that will eventually lead thousands of folks to the wonderful world of gourmet cheese-grating.

Or maybe this is just a shot in the dark that may or may not hit its mark. Bear in mind that 95% of all new product launches fail.

95%.

But let's just look at this again:

Step 1 - The Assumption: Bagged grated cheese isn't as good as freshly grated cheese. x% of shoppers might want a convenient (and budget-friendly) way to get access to freshly-grated cheese anywhere, anytime.

Step 2 - The Idea: Create a highly portable, pricepoint-specific cheese-grating "kit".

Step 3 - Test it to see how people like it.

Seems like a good idea, right? If someone walked up to you in your favorite store's dairy aisle and showed you a prototype, you'dprobably go "wow, yeah, cool idea. I'd buy that!"

Only... would you? Really?

Just because it's a cool idea, just because it is well executed, will you really buy it?

Is there really a need for this product?

Is this the kind of "innovation" that Kraft should be bankrolling?

Per Mary:

Even when we think we know and can see the target, we can still completely miss the dartboard. Kraft spends tons of money on research (1), development and marketing – and it’s still throwing darts in a dark room. You’ve got people who like cheese, but don’t like Kraft. You’ve got the people who like cheese and Kraft, but also want good parmesan cheese (not Kraft). Then there are the people who were raised on the powdered stuff in the green can and also grate their own (like me). Not to mention the people who “don’t have time to grate” and just grab can or bag. Oh, and then there are all those store brands (which I buy). So, what’s a mega-brand to do? Ay Yahhh!

(1) Research is dicey since people lie in focus groups, during product demos and on surveys. Yes, I know, another cherished illusion shattered.

Do I think that Kraft has a winner with this product? No, but let the market prove me wrong. Whether or not this product finds its niche is up to Kraft, retailers... and consumers. And that's the beauty of it. Sometimes, you just know... but most of the time, you don't. You might think you do, but you don't. Not really. (95%. I rest my case.)

So, while - overall - I would tend to side with Mary on this one, I have to applaud Kraft for giving this idea a shot. Whether Kraft looks at new product successes as a numbers game or just fosters a culture of innovation, they score points for trying new ideas and courageously launching products that are pretty likely to fall short of Kraft's market-penetration expectations. My advice, though, would be to stop wasting money on focus groups (which we know don't work), and go straight to market tests.

I say even if this one fails, keep trying. Keep giving product managers the freedom to try new ideas. To take you into new directions. Be daring. Be bold. Learn from your failures as much as you will from the successes. Use each product test and launch to gain a better understanding of (and appreciation for) your customers. You'll eventually get it right.

Shots in the dark may not be the most scientific or inspired way to get it done, but... it's still a whole lot better than playing it safe and doing nothing... And if you don't mind only getting big its 5% of the time, you'll be rolling in puppies in no time. As long as you make the most of that 5%, you'll always come out ahead. The other 95%, well, that's just the cost of getting there.

Fail often to succeed faster.

Have a great Tuesday, everyone.