Market Research SIG: Research for Products that Don't Yet Exist

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Market Research SIG: Research for Products that Don't Yet Exist

  1. 1. WAVE 5 INNOVATION: Looking “Inside Out” & “Outside In” to Change the Game October 14, 2013 Ralph Blessing, Executive VP, GfK Innovation
  2. 2. What Are Category Disruptions You Admire?? (No Apple or Facebook Mentions)
  3. 3. What were they thinking? © GfK 2013 3
  4. 4. What were they thinking? © GfK 2013 4
  5. 5. What were they thinking? © GfK 2013 5
  6. 6. What were they thinking? © GfK 2013 6
  7. 7. ….. Some Disruptions © GfK 2013 7
  8. 8. “The things we fear most in organizations – fluctuations, disturbances, imbalances – are the primary sources of creativity.” ~ Margaret J. Wheatley "The achievement of excellence can only occur if the organization promotes a culture of creative dis-satisfaction.” ~ Lawrence Miller
  9. 9. SERTA  versus  TEMPUR-­‐PEDIC     A  Case  Study   CONFIDENTIAL
  10. 10. Key Serta iComfort Strategies •  Key Point of Difference is cooling gel – some consumers complain that memory foam gets too hot •  Positioned as ‘next generation’ memory foam •  Focus on in-store materials (very beautiful displays) and co-op advertising with retailers •  Priced a few hundred dollars less than Tempur-Pedic •  Branding emphasized iComfort vs. Serta © GfK 2013 10
  11. 11. Some iComfort Materials © GfK 2013 11
  12. 12. Tempur-Pedic Slow to Initially React Tempur-Pedic Stock iComfort Launch © GfK 2013 12
  13. 13. Agenda © GfK 2013 13
  14. 14. Can’t Rely On Risk Adverse, Short Term Thinking “If you're not failing every now and again, it's a sign you're not doing anything very innovative.” ~Woody Allen Don't worry about people stealing your ideas. If your ideas are any good, you'll have to ram them down people's throats. ~ Howard Aiken © GfK 2013 14
  15. 15. Wave 5 Innovation A Definition Innovation that BREAKS OUT of existing category definitions or paradigms: [ [ Often borrowing news from other categories/services ] Creating solutions for specific user groups and/or occasions © GfK 2013 ] 15
  16. 16. 5 Waves of Innovation – All Are Important! Wave 5 Wave 4 Fusion of core with secondary needs Wave 3 Fusion of core needs (ex. Taste + Health) Wave 2 More advanced expressions of core needs Wave 1 © GfK 2013 Creating new category definitions Meeting basic core needs 16
  17. 17. Customer / Consumer Buy Benefits Customers are Driven by Four Overarching Motivators (Core Drivers) Safety Wellbeing Gratification Freedom Peace of mind that I, my loved ones and the planet will be safe from harm. Feeling good emotionally, physically, socially and financially. Enjoyment of a product or service; pride of ownership. “I’m worth it.” Saving time, energy, or money frees us up for other things. Each core driver can be dimensionalized The importance of each dimension/sub-dimension varies by category © GfK 2013 17
  18. 18. Key Principle – Evolving Needs Looking at today's needs isn't good enough – you need a future projection of what is going to emerge as a longer term need/ benefit space Future needs evolving here Current needs & messaging here Safety © GfK 2013 Wellbeing Gratification Freedom 18
  19. 19. A Model of Need State Evolution Categories evolve in waves based on customer needs, with core needs being addressed before secondary needs Wave 5 Wave 4 Advancing Dimensions of Security Wave 3 Disruptive! Wave 2 Wave 1 © GfK 2013 Fusion   Opportunity   Tomorrow   Advancing Dimensions of Convenience Category           Today   Basic Security Basic Wellbeing Basic Gratification Basic Freedom 19
  20. 20. Fusion of Needs – Oral Care Whitening (Gratification) + Health (Well Being) Wave 4 Fusion Wave 5 Advancing Dimensions of Security Wave 3 Advancing Dimensions of Convenience Well  Being  +  GraEficaEon   (enamel  health  +  whitening)   Wave 2 Wave 1 © GfK 2013 Basic Security Basic Wellbeing Basic Gratification Basic Freedom 20
  21. 21. Moving to Wave 5 New Category Definition Wave 4 Fusion Wave 5 Advancing Dimensions of Security Wave 3 Advancing Dimensions of Convenience Well  Being  +  GraEficaEon   (enamel  health  +  whitening)   Wave 2 Wave 1 © GfK 2013 Basic Security Basic Wellbeing Basic Gratification Basic Freedom 21
  22. 22. Outside-In Perspective From Around the Globe Patches, adhesives, kits, strips, professional care… Tracking news across categories, countries and time identifies innovation that is being seeded with customers © GfK 2013 22
  23. 23. The Approach in Action How did Coppertone find a disruptive innovation that significantly altered sun care? © GfK 2013 23
  24. 24. The Approach in Action Sunscreen evolution driven by Well Being – higher and better SPF 100   ???   90   30   45   50   15   4   What comes next? 24 © GfK 2013 24
  25. 25. The Approach in Action Secondary need states were overlooked; sunscreen was underdeveloped in the other drivers, particularly Convenience... Hard  to  Apply   © GfK 2013 Hard  to  Reach   Messy   “Future Opportunity” 25
  26. 26. The Approach in Action Looking “outside-in” for inspiration: Sun Protection © GfK 2013 26
  27. 27. The work enabled Coppertone to start a Continuous Spray category revolution Easy application – spray at any angle, no-rub Convenient twist to close – no cap to lose On-going protection – waterproof & sweat proof
  28. 28. Don’t Forget Timing Wishbone bought Salad Spritzers in 2006; Newman's Own and others soon followed with their own “spritzer” versions Before its Time: 1988 © GfK 2013 At the Right Time: 2006 28
  29. 29. Don’t Forget Timing Before its Time: Avert Virucidal Tissues by Kleenex Kleenex Anti-Viral Tissues 1984   © GfK 2013 At the Right Time: 2004   29
  30. 30. Don’t Forget Timing The Electric Car Re-launch at the Right Time? 1913     1961     Thomas  Edison  with  the   Henney  Kilowa4     Detroit  Electric  Car   (Failed;  no  interest)     © GfK 2013 2012     Tesla   30
  31. 31. Testing of Ideas “That Don’t Exist” 1.  Standard approaches and modeling just don’t work very well 2.  We find you have to: -  Look at “Leading Edge Consumers” for the ‘category -  Place more weight on uniqueness and less on believability or top box purchase interest -  Often we test unpriced early in the development -  Do NOT include super ‘finished’ visuals. May test via an animatic or video vs. 2-D board -  Map through diagnostics where the idea is delivering on benefit framework – how strong is the communication of new/fused benefits © GfK 2013 31
  32. 32. Lessons from GfK’s Leading Edge Consumers The future is here, if you know where to look “Leading edge consumers are most likely to shape the future — those that are early buyers, who are passionate about the category, and/or influence others in the category” We have found that this group of pioneers helps us predict the later direction of the majority. © GfK 2013 32
  33. 33. Connecting ALL the dots to provide FORESIGHT OBSERVING CHANGING PATTERNS White Spaces IDENTIFYING PRIORITY CONSUMERS and Benefits TAPPING OUTSIDE INFLUENCES © GfK 2013 LINKING “My Spaces” KNOWING WHEN TO LAUNCH 33
  34. 34. And, don’t forget our greatest tool of all… © GfK 2013 34
  35. 35. Closing Thoughts and Q & A 1.  Identify how evolved your category is today (through a customer/ consumer lens) 2.  Look for categories / geographies / services that are more ‘evolved’ §  Go ‘outside in’ §  Identify what news is being seeded with customers 3.  Link potential emerging desired benefits with emerging technologies / news – this can require a very extensive search outside familiar areas 4.  Develop specific innovation strategic platforms that can guide innovation short and longer term —  Use as a springboard for ideation 5.  Ironically – seeking Wave 5 identifies better Wave 2-4 ideas! © GfK 2013 35
  36. 36. Wave  5  InnovaEon…   SomeEmes,  You    Have  to   Swing  For  The  Fences!   "Security  is  mostly  a  supersEEon.   Life  is  either  a  daring  adventure  or   nothing."     ~  Helen  Keller  
  37. 37. Thank You. Ralph Blessing, Executive VP, GfK ralph.blessing@gfk.com

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