Imagine you are working on a new product development concept, a new package design, or a new creative campaign. What if the best concept is one you never even considered? When there are endless design possibilities, numerous internal stakeholders, and a tight deadline, the shortest distance between two points is a straight line. That's why SKIM's new Dynamic Optimization tool goes straight to the consumer to identify the best concept out of thousands of possibilities. Our presenters shared how this research technique can be used to optimize new product concepts but also packaging designs, brochures, ads, etc. SKIM's Dynamic Optimization marks a definite improvement over current practice, dominated by experts opinions and research that only provides validation, as opposed to true discovery and optimization. For more information about SKIM's webinars, visit www.skimgroup.com/webinars.

1. Share your thoughts online:
#SKIMwebinar
Concept Testing
Consider all the possibilities
Carlo Borghi
Project Manager
Abigail Joffre
Today’s webinar host

2. Imagine you have a new product…
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

3. Creating a package design
that has impact at point of sale is partly …
ART
- Catch the eye
- Make the brand stand out
- Position the product and informs the consumer
- Optimize the mix of elements
- Utilize the full potential of the creative
design template
3
CRAFT
SKIM Webinar “Concept Testing: Consider all the Possibilities”

4. Many variables can lead to a high number of possible
combinations
Color
Claim
Graphics
Logo’s
Product
Description
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

5. We developed a simple yet effective approach to quickly
drill down a wide range of possible combinations
An immense
search space
of potential
package designs,
combining ART
and CRAFT
5
A convergent
procedure
involving
consumer
opinions
Recommended concept
or set of concepts
+
Scores of levels
from the regression, indicating
their performance
SKIM Webinar “Concept Testing: Consider all the Possibilities”

6. We systematically limit the parameter space throughout
the search steps
•
Smaller, (n+1)th
parameter space
6
•
Collect set number of observations
•
nth parameter space
11-points scale purchase intent
measurements for pack designs
Run Regression
•
Define new parameter space by
dropping bottom ranking levels
SKIM Webinar “Concept Testing: Consider all the Possibilities”

7. Nice, but does it work?
It works!
In theory, we identified the
optimal pack design using
simulated data
In practice, we improved the
current package design and
were as good or better than
expert opinions
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

8. We tested the effectiveness of our approach for a
hypothetical product in the pet care category
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

9. 9
SKIM Webinar “Concept Testing: Consider all the Possibilities”

10. Design: 4 levels
Chemicals: 2 levels
Color: 5 levels
Benefit statement: 20 levels
Insect logo: 3 levels
Cat picture: 15 levels
Vet logo: 3 levels
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

11. Parameter space for a pet anti-parasite pack design
Attributes (7)
Levels
Nature
Package concept
4
Visual concepts
Pet picture
15
Pet pictures
Package color
5
Integrated in pack concepts
Claims
20
Text statements
List of chemical components
2
Present / absent
Icons
3
Present (2 versions) / absent
Vet only icon
3
Present (2 versions) / absent
# of possible combinations
11
108,000
SKIM Webinar “Concept Testing: Consider all the Possibilities”

12. Respondents go through the survey to narrow down the
packages to 18 combinations
Levels deleted
according to prespecified order
Possibility to
include clusters
Loop 1
Loop 3
Loop 4
Optimal
108,000 comb.
12
Loop 2
15,552 comb.
2,592 comb.
384 comb.
18 comb
SKIM Webinar “Concept Testing: Consider all the Possibilities”

13. In a consumer survey we tested if our solution is better
than 1) the current package and 2) the expert opinion
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

14. The experts selected their suggested winners from the
full set of pack alternatives
Current
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Experts
Optimization outcome
SKIM Webinar “Concept Testing: Consider all the Possibilities”

15. Our design process has delivered a better pack design
than the current package design
Best from algorithm (n=76)
9.01
2nd best (n=91)
8.87
3rd best (n=67)
These variations
would also be
“good enough”
8.82
4th best (n=96)
8.78
Current package (n=415)
8.21
6
7
8
9
All differences versus
current package are
statistically significant
at a 95% CL
10
Purchase intent rating (1-11 scale)
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SKIM Webinar “Concept Testing: Consider all the Possibilities”
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16. Two experts are as good as the algorithm
Although expert opinions are not always consistent
Expert B (n=61)
9.30
Best from algorithm (n=76)
9.01
Expert C (n=61)
8.98
2nd best (n=91)
8.87
3rd best (n=67)
8.82
4th best (n=96)
8.78
Current package (n=415)
8.21
Expert A (n=61)
8.10
6
7
8
9
Purchase intent rating (1-11 scale)
16
Difference not
significant @ 95%
SKIM Webinar “Concept Testing: Consider all the Possibilities”
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17. Outputs: identify the best concept(s) and potentially
optimize further!
SKIM Webinar “Concept Testing: Consider all the Possibilities”

18. Deliverables
1. An optimal concept (or group of concepts) with corresponding absolute
purchase intent scores
 An Excel-based simulation tool where concepts can be built and their purchase intent
scores simulated
2. Understanding of which parameters drive preference: relative importance
of each of the tested variables
3. Add-on (optional): Understand the reasons for preference and identify
ways to improve the best concepts even further
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

19. The importance of elements are measured and insights
can be gathered on the spot
Importance of the attributes
Benefits
Open-ended feedback
3-in-1 flea killing product – kills,
cares, prevents
Tells me exactly what it does
35%
3 benefits in 1
21%
Cares for my pet
15%
Cat picture
Colour
Chemical
Insect Logo
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“It tells me all the fleas will
be killed while being gentle
on my dear Fluffy ”
SKIM Webinar “Concept Testing: Consider all the Possibilities”

20. Clickable Concept: What elements are most appealing to
consumers?
Winning Concept
Respondents then click on
the parts they dislike the
most (highlighted in red)
Respondents click on the
parts they like the most
(highlighted in green)
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

21. Conclusions
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

22. Conclusion: we have an effective approach to identify an
optimal package design
Advantages over other methods (e.g., conjoint analysis) are:
•
•
Can handle a very large parameter space with many attributes and many
levels
•
Embedded validation: recommended concept was evaluated by many
respondents
•
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Show one package concept per screen (less exhaustive for respondents)
Can target questions to the best packages such as extra scores or details
through the “why” question
SKIM Webinar “Concept Testing: Consider all the Possibilities”

23. From pack designs to concepts, brochures, adcepts..
[Product name]
The new [product name] combines the
best aspects of a Notebook and a
Tablet. Thanks to its flexible designs
with [substantiation 1] and
[substantiation 2] is both [material
benefit 1] and [material benefit 2]
Furthermore, the new Windows 8 [Win8 benefit]. This means that
[benefit 1 brought to life]. Imagine [scenario 1]: you would be able to
[benefit 2 brought to life]. The new [Product name] will deliver
[performance comparison with notebooks] with the [tablets benefit] of
tablets.
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SKIM Webinar “Concept Testing: Consider all the Possibilities”

24. Share your thoughts online:
#SKIMwebinar
Go to www.skimgroup.com/webinars
for today’s presentation slides and more!
Carlo Borghi
c.borghi@skimgroup.com
+44 208 222 7704
Abigail Joffre
a.joffre@skimgroup.com
+1 201 963 8430
@SKIMgroup