For THG (Internet Retail)'s Myprotein brand, how should we balance developing innovative new supplement formulations versus maintaining consistent availability of popular existing products?

Introduction

For THG's Myprotein brand, we're facing a critical trade-off between developing innovative new supplement formulations and maintaining consistent availability of popular existing products. This scenario touches on product innovation, supply chain management, and customer satisfaction. I'll analyze this trade-off by examining the business context, user impact, technical feasibility, and resource allocation to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking our current product portfolio mix might be influencing this decision. Could you share the ratio of new vs. existing products in our current lineup?

Why it matters: Helps understand the current balance and potential saturation Expected answer: 70% existing, 30% new products Impact: A higher percentage of existing products might justify more focus on innovation

• Business Context: Based on our revenue model, I assume existing products contribute significantly to our bottom line. How do new product launches typically perform in terms of revenue compared to our established products?

Why it matters: Informs the financial impact of prioritizing innovation vs. consistency Expected answer: New products generate 20-30% higher margins but have more variable sales Impact: Higher margins for new products could justify increased focus on innovation

• User Impact: I'm curious about our customer segmentation. What percentage of our customers are repeat buyers of specific products versus those who frequently try new formulations?

Why it matters: Helps balance innovation with customer loyalty Expected answer: 60% repeat buyers, 40% experimenters Impact: A high percentage of repeat buyers might prioritize consistency

• Technical: Regarding our manufacturing capabilities, how easily can we switch between producing new formulations and scaling up production of existing products?

Why it matters: Assesses the feasibility and cost of balancing both priorities Expected answer: Moderate flexibility, but with some retooling costs Impact: High flexibility would make it easier to pursue both strategies simultaneously

• Resource: Can you give me an idea of our current R&D capacity for new formulations versus our production capacity for existing products?

Why it matters: Determines if we have the resources to pursue both strategies effectively Expected answer: R&D at 70% capacity, production at 85% capacity Impact: Limited R&D capacity might constrain our ability to innovate rapidly