Innovation and New Product Development Case Study

Method’s Innovation: A Cutting Edge?

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Abstract:
Home-cleaning products were one of the most sluggish, lack-luster categories in the US market. Industry giants like Procter and Gamble (P&G), the Clorox Co., Colgate-Palmolive (CP), and SC Johnson had massive infrastructure, thousands of employees, and billions of dollars in sales. However, their products looked very similar to each other and had not changed much from how they looked 50 years ago. With the advent of Method in the market, the scenario changed. A company with just 45 people dared to challenge giants like P&G which had 140,000 employees world wide. The company went on to become one of the fastest-growing household products companies in the US in 2005 with revenue of about $35 million and it was the pioneer in making mundane home-cleaning products into catchy items.

The company believed that “your home is a reflection of who you are and how you want to live, and we know that you want to live clean”.Created by two San Francisco young entrepreneurs, the Method team tried to transfer the household cleaner from an object that remained under the sink to a must-have counter-top accessory. The products’ innovative packaging design took cleaning to a whole new level functionally, aesthetically and environmentally. In the category of "have to buy" commodities, Method made the consumers "want to buy" dishwashing soap. The entire organisation was based on speed and innovation and the organisation culture was fueled by passion, a “can-do” entrepreneurial spirit, challenging conventional thinking and a great group of witty and talented individuals.

FMCG analysts said that Method did everything differently. Analysts were allured by the start-up company’s innovative strategies and they questioned whether Method would be able to entice the American consumer away from the giants of the household products industry. Would Method’s product innovation guarantee long-term success and sustainability in the market?

Pedagogical Objectives:

• To understand the roles of Eric Ryan and Adam Lowry in constructing the Method firm
• To discuss “Method’s innovation strategies as a start-up company in the home-cleaning products industry
• To understand the role of Karim Rashid in designing dish soap bottles.

Keywords : Method; Dish Soap; Innovation Management Case Study; All purpose cleaners; Entreprenuership; products; designing; Merchandising; Home Cleaners; Branding; US