Tag Archives: NPD

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.

Using Consumer Insights/Data to Create A New Consumer Category through D2C by Theresa Farrell and Rebecca Dilnik #FOCI14 #MR

Live blogging from the #FOCI14 conference in Universal City. Any errors or bad jokes are my own.foci14

Using Consumer Insights/Data to Create A New Consumer Category through D2C
Theresa Farrell and Rebecca Dilnik,
KIMBERLY-CLARK CORP.

  • proactive is a direct to consumer billion dollar brand via television
  • hard to innovate in the consumer packaged goods area, traditional method has a lot of issues
  • complex – marketing, media, distribution and more
  • expensive – buying media, planning distribution, stocking, inventory, training
  • risky – CPG innovation failure rate is between 50% and 90%
  • inflexible – once machine is moving, media is bought, customers are ready, you can’t just stop it
  • success won’t be known for six months
  • test markets are complex, expensive, time consumer, and maybe not even predictive if you don’t match them well, garbage in garbage out
  • in direct to consumer space, you can sell a little bit and learn a lot
  • lower investment than with a national launch, don’t have to build up large inventory, you can measure instantly what was bought and by whom, you can modify your plan more quickly
  • Case study #1: Neat Sheet
  • Little Swimmers are diapers so toddlers can swim)
  • the outer cover prevented sand from sticking to it so why not transfer that into a little ground cover – the NEAT SHEET
  • projected market results were not met, tests said it would work but couldn’t get it in the stores and consumers couldn’t find it, people loved the product and they needed to raise awareness of it
  • works at the beach, working on your car, at sports events, at concerts and 100 other uses
  • how could they get stores interested in the product? QVC would be a great opportunity
  •  good sales in 2002 and 2003, but by 2007 they took it off the market, but lots of great learnings about how to prepare to use QVC
  • Case Study #2: Kleenex hand towels
  • discovered via diary data, tested really well, packaging is designed to fit any bathroom on a towel bar or on the counter. but kleenex is a big brand and habits are hard to break. people are used to using a regular towel. consumers need demos.
  • tested in january 2010. in 8 minute slot they had several demos. first slot had 2700 purchases. $7500 per minute. QVC says if you get $5000 per minute they will keep you on air longer. They were able to figure out where within the 8 minutes they got the most interest. ended up selling more than $9000 a minute which was the best of the day.
  • a fresh clean towel every time you dry your hands eliminates the “yuck” factor and is a good health benefit [but boy is that wasteful!]
  • learned a little more, sold a little more.
  • retailers were sold on the DTC results and were able to get store distribution a lot easier, continue to see adoption to today
  • Case Study #3: Truist moisturizing socks and gloves
  • designed for women over 50, positioning is not maintaining youth, it is honest aging and taking care of yourself and the changes that come with it [deemed a risky position. sigh. okay, be happy with who you are. right now.]
  •  we are taught about the aging process way too early, we are expected to look impossibly perfect [hell yeah! yes, I took a less than flattering selfie of myself today 🙂 ]
  • how do we support a great product and minimize the risk? start with DRTC. Made a 30 minute infomercial with real women. Great viewership but low sales.
  • switched to a 5 minute version to the target audience, modified the video to show real women using the product. this worked but adding free shipping helped more.
  • fortunately experiments are quick and cheap – media format, optimal line up, price experimentation, free products or free shipping, find the right TV channel to put your infomercial on
  • Key takeaways for DTC for innovation
  • you can get in the market a lot faster, lower investment of media and product, real time research of changing price product format [honestly never thought that major brand names did infomercials]

 

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