CPG companies pay $5M–$30M annually in innovation costs that never appear on any statement. Four inputs. Thirty seconds. Your number.
Total budget committed to new product development - including R&D, consumer research, agency fees, and internal time. Include everything, not just the line marked ‘innovation’.
All products that reach shelf or market in any given year - including line extensions, renovations, and genuinely new products. If you’re unsure, estimate conservatively.
Your internal benchmark for what a ‘successful’ new product generates in its first twelve months. If you don’t track this, use your best estimate - it is already an interesting data point.
How well does consumer evidence gathered at the front end of your innovation process inform decisions made at every subsequent stage? Rate honestly.
If the Hidden Innovation Tax compounds at its current rate while private label takes further share and challengers accumulate system advantages.
—
—
This calculator gives you the framework. The discovery conversation gives you the specific answer - which layers are concentrating the most cost in your current pipeline, and what addressing them looks like in practice.
Visit our website to find out more about Catalyx Canvas or download our White Paper on The Hidden Cost of Innovation Unpredictability.