Making Innovations That Inspire: A Webinar To Learn How To Get More Innovations To Market
-
Upload
ipsos-in-north-america -
Category
Business
-
view
481 -
download
5
description
Transcript of Making Innovations That Inspire: A Webinar To Learn How To Get More Innovations To Market
Average Break
Through Commodity Curiosity Winner Price
Resistant Value Brand Want Luxury Novelty Premium
Get More Innovation into Market Ideas to Drive New Product Success
InnoQuest*Vantis March 2013
2
InnoQuest*Vantis - Range
EVALUATE CONCEPTS
FINALIZE PROPOSITION
& LAUNCH
MONITOR PERFORMANCE &
MAXIMIZE ROI
EXPLORE FUZZY
FRONT END
OPTIMIZE
3
Experience
Large Durables Appliances Garage Organization Bath Yard Building Materials
Financial Services Banking Mortgages Investments Mobile Payments
Small Durables Cleaning Tools Bath Lighting Decor
Smart house Climate control Security Appliance control Sensory management Personal emergency
Consumer Electronics Video Audio Camera
Technology Computing Tablets Software
New to the World Surgical techniques Robots
Smart body Fitness Disease monitoring Tracking
Telecom Smart phones Cable Other “content” providers Other “data” applications
25 years 30 thousand products
84 countries
4
On the one hand, perhaps consumers can’t tell us what’s innovative, especially in a quantifiable way On the other hand, without voice of the customer, most companies innovate too much based on what they can produce And in between the extremes of consumer- vs. tech-centric are a variety of approaches: lead users, gurus, process oriented…that may or may not be predictive
6
Innovation is hard!
46% of resources devoted to failed/cancelled products
About 80% of ideas and concepts tested will never launch
About 70% of launched products will disappear within two years
Source: Booz Allen
7
Problems with Innovation Funnels
Source: Harvard Business Review
70% Core
20% Adjacent
10% Transformational
10% Core
20% Adjacent
70% Transformational
Innovation Activity Innovation Returns
Test Well, Don’t Do Well Things past peak on trend (e.g., investment advice, energy savings appliances, more points per dollar on loyalty programs)
Incremental line extensions Straight give-aways on profit per unit Do Well, Don’t Test Well Things a little before their time (e.g., Personal Readers, PVR, Single Serve Coffee Machines, Netflix)
‘A little too different’ things that strike an emotional cord – done well (e.g., Snuggie)
What Could Be Improved
The traditional measurement system is mis-used The evaluative view is not broad enough Insights erode on their journey to commercialization
10
#1 Typical Measurement Systems Mis-used
Look for the right things
13
13% 15% 13%
26%
17% 20% 17% 13%
21% 3%
6% 5%
8%
9% 8%
4% 6%
12%
16% 21% 18% 34% 26% 28% 21% 19% 33%
NokiaBooklet
3G
AmazonKindle
2
AppleTV
HPMini
AppleiPhone
3Gs
PalmPre
LGChocolate
AppleiPad
DellInspiron
11z
Pur
chas
e In
tent
Definitely Would Buy Probably Would Buy
The Trouble With One Measure
Failed Succeeded
Top Two Box %
14
Seek Information (Top Two Box %)
Purchase Intent (Top Box %)
Purchase Intent (Top Two Box %)
Liking (Mean 6-Point Scale)
Price/Value (Mean 5-Point Scale)
Uniqueness (Mean 5-Point Scale)
Believability (Top Box%)
Need Fulfillment (Top Two Box %)
115
0 67 133 200
Market Success Score
Placement in Vantis Database
Bottom 20%
Below Avg. Avg. Above
Avg. Top 20%
Multiple Measures is Better, But Not Enough
95%
22%
45%
3.2
2.3
3.6
41%
22%
Raw Score Key Measure Question
15
Seek Information
Purchase Intent (Committed)
Purchase Intent
Liking
Price/Value
Uniqueness
Believability
Need Fulfillment
Placement in Vantis Database
Bottom 20%
Below Avg. Avg. Above
Avg. Top 20%
It’s The Total Profile That Matters
When we look at these comparisons, we are looking at patterns of scores.
Like a constellation.
We use this pattern to understand a concepts strengths and weaknesses.
And its true potential.
16
Seemingly ‘Middle Performers’ Are Often Dismissed Too Early
Top performer archetypes
Winner Under-priced Good concept
Middle performer archetypes
Breakthrough Me too For Want Value
Branding
Over-priced Average Luxury Commodity
Niche/targeted Atypical Value resistant Unconvincing
Potential future hit Skeptical Communications
Challenged Caught in middle
Poor performer archetypes
Laggard
?
17
18
19
Each Archetype Profile is Assessed in the Context of the Commercial Game Plan
Pricing Normally needs to come down as quickly as production economies permit
Product Needs to be designed for the masses; generational and line management is key – having a roadmap for the evolving product line
Promotion Advance PR with mass support positioned to a non-sophisticated consumer
Distribution Mass and elite distribution; mass distribution often rolled out slowly starting in outlets with a high CDI, sales person/channel incentivizing is important but often only affordable in elite channels; POS demo is useful
High Liking and Uniqueness, Top Box Purchase Intent often average or above, Price / Value often below average
30,000 24 80
20
#2 The Evaluative View is Not Broad Enough
Look Past the Data
21
5 Essential Factors Ultimately Lead to Product Success
Sales Potential Penetration and Revenue Potential
Communication Simple and single-minded, focused, effective
Audience Clearly defined and sizable, interested, reachable
Long Term Sustainable, Evident possibilities for new revenue streams
Edge Sells itself (real benefits), generates buzz, Sustainable competitive advantage
22
Consumer Goods Framework
Market & Execution
Marketing Force
Market Structure
Shelf Visibility & Adv. Brand Recall
Comparability of Size & Range
Promotion
Distribution
Media
Innovation Performance Framework
Consumer Demand
Relevance
Expensiveness
Differentiation
23
#3 Insights Erode
(or were not the foundation in the first place)
24
Defining an Insight
The REVELATION of a SIGNIFICANT GAP
between consumers’ ASPIRATIONS and what
they perceive as AVAILABLE, which can be turned into a
BUSINESS OPPORTUNITY
24
25
Framework for Insight Development
Credible Revelation
Occurs in Daily life
Frequent
Personally Engaging
Consumer is Ready to Change behavior
Tension Important
26
Assure Continuity of Insight
26
Better Ideas
Better Concepts
Better Ads
Better Insights
Product Development Approaches
Copy Development Approaches
27
Assure Continuity of Insight
27
Better Ideas
Better Concepts
Better Ads
Better Insights
Don’t compromise
high standards
If insights are known to be
strong, you can screen more
easily
Keep it real
Measure not just appeal but how the parts of the concept
resonate
Directly link testing results
to creative briefs
Avoid feature myopia
28 28
• Consumers can definitely send us signals about true and game-changing innovation if we look at their feedback through the right lens – pay special attention to those ideas in the middle
• Consumer feedback needs to be systematically married with market and marketing success factors to guide the right action and excite the organization
• Rigor in what constitutes an Insight and how it is shepherded through the commercialization process will lead to more success
• Doesn’t require reinventing the wheel
Summary
29
Jason Brown President, InnoQuest*Vantis
P: 212-584-9248
2
30
Segment Potential Index and Incidence – Bose SoundLink wireless music system
Target Segment for Bose SoundLink consists of: Age 18-34 Smartphone owners Value quality over price, brand etc
Note: The target profile for this concept was used to define the appropriate segment.
Likely buyers for this concept are heavy newspaper and magazine subscribers, providing a direct channel to reach the right audience
Segment Incidence: 24% - Sizable
SPI: 135 - Interested Bottom 20 Percentile
Below Average Average
Above Average
Top 20 Percentile
Seek Information (Top Two Box %) Purchase Intent (Top Box %)
Purchase Intent (Top Two Box %) Liking (Mean 6-Point Scale)
Price/Value (Mean 5-Point Scale) Uniqueness (Mean 5-Point Scale)
Believability (Top Box%) Need Fulfillment (Top Two Box %)
Message Power Score Buzz Power Score
78
0 67 133 200
Sales Potential
Communication
Audience
Long Term
Edge
Good/ Strong
Strong Buzz
Key Measure Scorecard
Market Success Score
Communications Indices
31
Example 2 – Dell Cloud Computer
32
Segment Potential Index and Incidence – Dell Cloud Computer
Target Segment for Bose Dell Cloud Computer consists of: Smartphone owners More frequent streaming of content
Note: The target profile for this concept was used to define the appropriate segment.
Likely buyers for this concept are heavy newspaper and magazine subscribers, providing a direct channel to reach the right audience
Segment Incidence: 24% - Sizable
SPI: 135 - Interested Bottom 20 Percentile
Below Average Average
Above Average
Top 20 Percentile
Seek Information (Top Two Box %) Purchase Intent (Top Box %)
Purchase Intent (Top Two Box %) Liking (Mean 6-Point Scale)
Price/Value (Mean 5-Point Scale) Uniqueness (Mean 5-Point Scale)
Believability (Top Box%) Need Fulfillment (Top Two Box %)
Message Power Score Buzz Power Score
106
0 67 133 200
Sales Potential
Communication
Audience
Long Term
Edge
Good/ Strong
Strong Buzz
Key Measure Scorecard
Market Success Score
Communications Indices
33
Each Archetype Profile is Assessed in the Context of the Commercial Game Plan
30,000 24
cases
archetypes