A global cosmetics division used Lean New Product Development, to focus its innovation strategy, strengthen customer insight and streamline launches—leading to multiple best-selling products and strong top-line growth.
Context and Challenges
The cosmetics division of a large consumer-goods company was struggling to build a sustainable, profitable business:
- No clear business and innovation strategy – development efforts were scattered and unfocused.
- Many pointless initiatives were launched across categories and segments, diluting resources.
- Customer focus was missing in New Product Development; internal process steps and approvals took precedence over consumer value.
- Teams emphasised “getting projects approved” and preparing deliverables, while coordination across business units and end-to-end success were neglected.
- Innovation was not treated as a key priority by senior management, so sponsorship and accountability were weak.
The division needed a structured, strategy-driven and customer-centric NPD system that could focus efforts, improve hit-rate of launches and turn innovation into a genuine growth engine.
Our Approach
We helped in implementation of Lean NPD built around Successful Initiative Management and Product Launch model, using a four-step journey:
Assessment & Diagnosis
- Reviewed historical launches and performance to understand why cosmetic initiatives were under-delivering.
- Mapped the existing NPD process from idea to launch and post-launch, highlighting where projects were selected, resourced and reviewed.
- Identified gaps in business strategy, customer insight, cross-functional coordination and leadership focus on innovation.
Define Innovation Strategy & Portfolio Focus
- Business leadership teams began rigorous business planning with clearly defined objectives, goals and innovation strategies for priority categories.
- Clarified which categories, segments and propositions the division would focus on, and which would be de-prioritised.
Design Lean NPD System – Innovation Diamond & SIMPL
Implemented the Innovation Diamond philosophy based on four themes:
- Product & Innovation Strategy – clear goals and streamlined supply network.
- SIMPL – idea-to-launch and post-launch model, with explicit stages and decision points.
- Resource Commitment – disciplined allocation of resources and introduction of success managers between top management and business units.
- Positive Climate & Culture – senior-management-led innovation, cross-functional teams and systematic tracking of results from new products.
Implementation, Governance & Continuous Improvement
- Embedded SIMPL as the standard NPD process, with customer value at the centre through consumer research and strong focus on consumer insights.
- Set up portfolio management and resource profiling to pick the right projects, anticipate resource peaks and reduce risk and waste.
- Regularly tracked business results from new products and used learnings to refine strategy and the pipeline.
Key Strategies Implemented
- Customer-value-driven SIMPL process: Every initiative followed an idea-to-launch and post-launch model where consumer insight and customer value were the primary gates, not just document completion. Specific success criteria were defined and agreed for each project.
- Sharp Product & Innovation Strategy: Clear objectives, goals and strategies for the cosmetics division, with a streamlined supply network to support launches. This reduced scattered, low-impact initiatives.
- Strong Resource Commitment & Success Managers: Resources were effectively allocated to the right projects; success managers acted as a bridge between top management and business units, enabling faster and more calculated decisions.
- Innovation Culture and Cross-Functional Teams: Senior management visibly led innovation; effective cross-functional teams were formed; tracking of new-product business results (annual / semi-annual) became standard practice.
- Portfolio Management & Resource Profiling: Portfolio management enabled a systematic approach to execution, building a strong future pipeline. Resource profiling reduced waste, anticipated peak periods and lowered risk.
Results Achieved
- Top-line growth: Total company sales increased by USD 8 billion in first year post implementation, with new products contributing significantly.
- Stronger innovation outcomes: Five new products from the cosmetics division featured among the best-sellers in the non-food category.
- Innovation as a core capability: Product innovation gained prime importance across the company and was integrated into its fundamental statement of purpose.
- Reduction in new product development & launch time: Resource profiling and portfolio management reduced wastage, improved investment decisions and enabled more accountable, on-promise project delivery.
- Improved coordination & speed: Success managers and clear SIMPL governance led to quicker, better-coordinated decisions and execution.