Thank the Weirdos for Product Breakthroughs #ESOMAR #MRX

esomarLive blogging from #ESOMAR Congress 2014 in Nice, France. Any errors or bad jokes are my own.

How Success Stories from the Past can Inspire Future Innovation: Reviewing new product launches in the US and Europe by David Hood, Nielsen, UK, Marcin Penconek, Nielsen, Poland

  • Talking about Milka Choco Supreme [HA! I bought these for the first time ever yesterday :)]
  • They had to increase visibility of this new item, thought about equity transfer. This product is one of many things they launched over a two year period.  Total franchise increased by 100 million Euros and they penetrated new consumers.
  • How to find the winners, the most important innovations. First look at relevance – year 1 sales of at least 10 million euros. Second look at endurance – 85% of year 1 sales had to be achieved in year two. Third – [couldn’t hear this one]
  • Of 60 000 SKUs, half died in half a year, only 24% survived the full year
  • There were 12000 launches in 17 categories over a couple of year – france, UK, italy and spain, plus the USA
  • Breakthrough success is not correlted with category landscape, growth, decline, small, large, didn’t matter
  • Beer has a small innovation focus, new items are 1% of category sales.
  • The brand winners are Belvita, Mucinex, Limearita, Meow Mix, zzzquil, Magnum, lays xtramix, milka, lucozade
  • Are some of these even innovative? Is lucozade lemonade an innovation or just another flavour? it reaches brand new consumers, image is not for fueling active life. initially launched as limited edition.
  • Breakthrough winners tend to source outside of the category. 45% is category expansion not from switching brands.
  • Look for small trends and chase that, not the existing category. Make a professional grade mainstream. Relieve people of unwanted trade-offs. Build a platform. New usage occasions. Meaningful secondary benefits. Stretch your brand.
  • International delight iced coffee – Consumers in coffee house want to drink inside and others want to take away. Take aways are often dissatisfied with the experience, didn’t like the line, cups spilling, getting their name wrong. The coffee house wasn’t delivering. Also, ice coffee has little to do with coffee – milk, sugar, syrup.
  • Must understand the reason for non-consumption. need to understand what consumers are looking for functionally, emotionally, and socially.
  • Breakthroughs don’t always require a big investment.

Nature vs. Nurture: Can You Change Your Innovation’s Destiny?: The impact of marketing on an innovation’s personality archetype by Helen Wing, Ipsos InnoQuest, UK, Lee Markowitz, Ipsos InnoQuest, USA
Lucy Balbuena, Ipsos InnoQuest, France, Paul Crowe, Ipsos InnoQuest, USA

  • Clients want to innovate with certain personalities. Me or we people?
  • Formed 12 brand personalities: Three are Winners, Good Starts, and Underpriced
  • Some personalities have a better chance than others – Promising – Winner, good start, underpriced. Inspiring – Breakthrough, Atypical. Depends on strategy – Me too, niche, value, premium. Handle with care – Unconvincing
  • Look at relevance, believability, and differentiation
  • tested product that cleaned the dishes and the dishwasher – people didn’t really believe it
  • Tested petroleum car that was environmentally friendly – people didn’t see it as relevant, it’s been around a long time
  • Tested disposable cutting board to avoid food contamination – People didn’t believe it and it wasn’t relevant
  • Tested fast food chain – 28% me-too and 20% unconvincing, much more than norms database.  THey had better success in restarts.
  • Companies will have different personality that do not align with their strategy
  • Companies vary on ability to do it. don’t all have the same commitment to nurturing innovations.
  • Most success nurturing breakthroughs to good starts or winners. Me too ideas to good stars or winners. Unconvincing ideas to breakthroughs.
  • The dishwasher product, they marketed how the product works so that believability would improve.
  • Nature and Nurture matter. It depends on your personality and what you’re good at changing.
  • [Lee played a bit role in getting me started in my career. Statisticians ROCK! Thanks Lee 🙂 ]

A Disruptive Value Proposition: Interconnecting consumers, brands and a retailer via market research by Patricia Flores, Reperes, France, Stéphane Gautron, Carrefour Management, France

  • 2/3 of launches fail despite pre-testing.
  • Consumers recruited online or in the store, but they register online as part of a community. Recruited 300 000 people and nearly 2 million interviews. Tested 1800 products and 400 brands. They pick a product they are familiar with, share ideas about it, get a coupon, do their shopping basket as usual, and pay for everything. Then they use the product at home and answer questions about.
  • The IHUT includes the brand AND the retailer.
  • The full ecosystem benefits every partner. Consumers get the product for free and they get to access other consumers evaluations. [This is great! People want to see the results!] And they get to particiapte in games and animations with the community. [This would turn me off. I’d quit that study PDQ]  People say sometimes they won’t try a new product because it’s so expensive.
  • They put little signs on the shelf in the stores so people know they can test a product by joining the community.   [LOVE THIS! imagine how it would make people love MRX in North America!]
  • They can benchmark the results against all the other products, and get profiling of their best consumers.
  • The test itself creates buzz and this can feed the brand site or facebook.
  • Retailers benefit too because it improves loyalty of customers who want to get the product at YOUR store.
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