Research Practices that Hinder InnovationStephen Bohnet, SVP & General Manager Ipsos Vantis                Predicting mark...
Innovation is an investment                                             2© 2011 Ipsos
Accelerating Returns                                      3© 2011 Ipsos
The Video Rental Market                                         ?                                             4© 2011 Ipsos
Your role                           5© 2011 Ipsos
Ipsos Vantis Specializes in Innovation                   Predicting Market Potential for business initiatives,           ...
About Ipsos Vantis      Business units focused on technology,       financial services, health, and durable       goods  ...
Ongoing Validations:               Past 6 Month Technology Innovations Studied                Iconia                      ...
Research Practice #1:How we measure success          Predicting market potential for business initiatives, with 20+ years ...
What do these new products & services have in               common?                                                       ...
All of these offers had average to low purchase intent               scores        50%               Top Two Box Purchase ...
The Problem with the Hurdle                                             13© 2011 Ipsos
Research Performance vs. Market Success                              Concept Testing Rank                                 ...
Every Concept has a Unique Personality                                   Consumers like this idea and consider it highly ...
Four Key Winning Profiles                                                 Mass Potential   Breakthrough   Niche/Targeted  ...
How to Go Forward                                   New web browser for Windows. Google Chrome is a                       ...
Linking Concept Performance and Message Execution               Archetype                                             Stri...
Recap: Measuring Success      High purchase intent is good, but it is not the only way forward      Recognize the other ...
Research Practice #2:What we show to the respondent            Predicting market potential for business initiatives, with ...
Golden Rule: Model the Buying Process                 If our purpose in evaluating a new offer is to                determ...
The Concept                             23© 2011 Ipsos
In many categories it is becoming increasingly difficult to               differentiate the hardware                      ...
Show Me, Don’t Tell Me                                        25© 2011 Ipsos
26© 2011 Ipsos
Microsoft Kinect Scores                                               Raw    Written Concept               Raw            ...
Recap: What We Show the Respondent  Liberally apply Single Minded Proposition    The basic tenet works: structure your i...
Research Practice #3:The Need for Speed           Speed for speed’s sake, except in very special instances, is rarely     ...
Research has gotten faster and cheaper over the past 15                   years                                           ...
The #1 Problem Area for Innovation Research is….                                The Concept                              ...
Recap of Today’s Key Points  Recognize there are several paths leading to success    High purchase intent as the primary...
A Voice for Innovation- www.innovationpov.com                                        The latest in:                      ...
Vantis Concept Testing Offers                Multi-Client Study             Custom Study                                  ...
Related Articles                   Innovation Misconception (articles 1 through 7) (2010)                    Jason Brown ...
Stephen Bohnet, SVP & GM          O. 925.327.2032          M. 925.325.5969stephen.bohnet@ipsos.com             @IpsosVanti...
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Research Practices That Hinder Innovation- Webinar

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Our late 2011 webinar on how certain research practices actually hinder innovation.

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Research Practices That Hinder Innovation- Webinar

  1. 1. Research Practices that Hinder InnovationStephen Bohnet, SVP & General Manager Ipsos Vantis Predicting market potential for business initiatives, with 20+ years validated history Nobody’s Unpredictable
  2. 2. Innovation is an investment 2© 2011 Ipsos
  3. 3. Accelerating Returns 3© 2011 Ipsos
  4. 4. The Video Rental Market ? 4© 2011 Ipsos
  5. 5. Your role 5© 2011 Ipsos
  6. 6. Ipsos Vantis Specializes in Innovation Predicting Market Potential for business initiatives, with 20+ years of validated history Identify winning initiatives Optimize & simulate launch scenarios A suite of powerful, fast, and affordable A suite of customizable forecasting tools services to help you identify winning for optimizing price, features, product initiatives early in development by design, and marketing. Used for modeling assessing their true market potential. new products, portfolios, and categories.  Predict market potential  Forecast units, revenues, profits  Prioritize features, ideas, & concepts  Feature simulation  Define the consumer target  Pricing simulation  Measure the strength of the message  Product & Prototype Design simulation  Identify key/motivating phrases in the  Measure Incrementality vs. message Cannibalization  Measure buzz potential  Competitive war-gaming  Marketing plan simulation 6© 2011 Ipsos
  7. 7. About Ipsos Vantis  Business units focused on technology, financial services, health, and durable goods  World’s largest database of key measure survey scores – over 25,000 concepts tested (Consumer and B2B)  Proven track record of forecasting accuracy through rigorous post-launch validation and R&D relating survey results to demand  Independent study of new products and services, to strengthen our models and build relevant case studies to share with our clients  Leading edge innovations in quantitative research 7© 2011 Ipsos
  8. 8. Ongoing Validations: Past 6 Month Technology Innovations Studied Iconia BRAVO MB520 Veriton Z290G FLIPOUT iPad 2 FLIPSIDE Macbook Air 2nd Edition XOOM TV Second Edition 3Ds Buy Back Program Rear-view Mirror Playbook Viera Tablet Bluetooth Headset Ping Soundlink Wireless Music System Switchblade Boxee Box 3D HDTV Umi Galaxy Tab Cloud Computer HT-D7100: Home Theater Cube Ultra HD Virtually Edgeless LED HDTV Kids Designer Tablet Full HD 3D camcorder TV Playstation PSP2 HD7 Flex View Surround XVT Series 3D HDTV XFINITY 8© 2011 Ipsos
  9. 9. Research Practice #1:How we measure success Predicting market potential for business initiatives, with 20+ years validated history Nobody’s Unpredictable
  10. 10. What do these new products & services have in common? 11© 2011 Ipsos
  11. 11. All of these offers had average to low purchase intent scores 50% Top Two Box Purchase Intent 45% 40% 35% 30% 30% 25% 11% 21% 20% 19% 6% 16% 15% 8% 8% 10% 19% 15% 5% 11% 8% 0% iPad Kindle Hulu+ Straight Talk Definitely Would Buy/Sign Up Probably Would Buy/Sign Up 12© 2011 Ipsos
  12. 12. The Problem with the Hurdle 13© 2011 Ipsos
  13. 13. Research Performance vs. Market Success Concept Testing Rank 14© 2011 Ipsos
  14. 14. Every Concept has a Unique Personality Consumers like this idea and consider it highly unique, but have trouble Bt believing the claims or accepting the price. As its benefits become more accepted and/or the price comes down, this product will have mass Breakthrough $ potential. Expect a fiercely competitive marketplace. Margins are likely to be tight and payout will take time, as competitors vie for brand leadership in the emerging category Bottom 20 Below Above Top 20 Percentile Average Average Average Percentile Seek Information (Top Two 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 %) 15© 2011 Ipsos
  15. 15. Four Key Winning Profiles Mass Potential Breakthrough Niche/Targeted Price/Fee Imbalance Purchase Intent High Ave High Low (Top Box %) Vantis Key Measure Purchase Intent High Low to Ave Low to Ave Low to Ave (Top Two Box %) Liking Ave to High High Low to Ave High (Mean 6-Point Scale) Price/Value Ave to High Low to Ave Low to Ave Low (Mean 5-Point Scale) Uniqueness Ave to High High Low to Ave Ave to High (Mean 5-Point Scale) Believability Ave to High Low Low to Ave Ave to High (Top Box%) Need Fulfillment Ave to High Low to Ave Low to Ave Ave to High (Top Two Box %) 17© 2011 Ipsos
  16. 16. How to Go Forward New web browser for Windows. Google Chrome is a browser that combines a minimal design and sophisticated technology Make the web faster, safer, easier Search from the address bar: Type in the address bar and get suggestions for both search and web pages. Thumbnails of your top sites: Access your favorite pages instantly with lightning speed from any new tab. Private browsing: Open an incognito window when you dont want to save your browsing history Percentage selecting phrase: 1-19% 20-34% 35-49% 50%+ 18© 2011 Ipsos
  17. 17. Linking Concept Performance and Message Execution Archetype Strive for Clarity Market Ready Winning Winning ideas that are communications Winning ideas with clear marketing challenged. These ideas may be more messages. Marketing investment difficult to communicate in market. likely to solidly payoff. Strive for better message clarity and focus. Market Potential Adjust & Retest Reconstruct or Bow-out Poor performing ideas with unclear Poor performers with clear messages. messages. Adjustments to messaging Consumers “get it” but don’t want it. can often improve these weak These are either simply poor ideas, or performers. ideas that need a major positioning overhaul before they will succeed. Potential Low Low Message Power Score High 19© 2011 Ipsos
  18. 18. Recap: Measuring Success  High purchase intent is good, but it is not the only way forward  Recognize the other profiles of winners – Many big innovations do not have high purchase intent initially  Be willing to iterate on ideas that show promise, but aren’t ready  Giving good guidance on HOW to move forward is as important as identifying the right ideas – Is your idea easy to communicate in the market? – Are there ideas that aren’t ready for advancing, but should go through some fix-it steps, then retest? 20© 2011 Ipsos
  19. 19. Research Practice #2:What we show to the respondent Predicting market potential for business initiatives, with 20+ years validated history Nobody’s Unpredictable
  20. 20. Golden Rule: Model the Buying Process If our purpose in evaluating a new offer is to determine it’s potential in the market, then we must show the idea to the consumer/customer in such a manner that reflects what that person will learn or experience when encountering the product offer in the real world. 22© 2011 Ipsos
  21. 21. The Concept 23© 2011 Ipsos
  22. 22. In many categories it is becoming increasingly difficult to differentiate the hardware 24© 2011 Ipsos
  23. 23. Show Me, Don’t Tell Me 25© 2011 Ipsos
  24. 24. 26© 2011 Ipsos
  25. 25. Microsoft Kinect Scores Raw Written Concept Raw Video Score Score  + Images  Concept Seek Information (Top Two Box %) 51% 64% Purchase Intent (Top Box %) 13% 23% Purchase Intent (Top Two Box %) 31% 47% Liking (Mean 6-Point Scale) 3.8 4.5 Price/Value (Mean 5-Point Scale) 3.3 3.9 Uniqueness (Mean 5-Point Scale) 3.6 4.1 Believability (Top Box%) 44% 37% Need Fulfillment (Top Two Box %) 29% 47% Vantis Database Ranking Bottom Below Above Top 20% Ave Ave. Ave. 20% 27© 2011 Ipsos
  26. 26. Recap: What We Show the Respondent Liberally apply Single Minded Proposition  The basic tenet works: structure your idea using insight, benefit, and reason to believe  BUT… give people the information that they would have when buying – Non CPG products are often multi-faceted – There is rarely only 1 reason to believe. Steal a play from the Apple playbook: Show me, don’t tell me  Convey the user experience  More Flash, Video, Images, even PPT in research to simulate the offer  The offer doesn’t have to be fully baked or prototyped 28© 2011 Ipsos
  27. 27. Research Practice #3:The Need for Speed Speed for speed’s sake, except in very special instances, is rarely effective. This is not to say that speed is unimportant. Jason Brown, President & CEO Ipsos Vantis Innovation Strategy, Misconceptions (Oct 2010) Predicting market potential for business initiatives, with 20+ years validated history Nobody’s Unpredictable
  28. 28. Research has gotten faster and cheaper over the past 15 years Research Timeline Setup Recruit & Fieldwork Analysis Pre-Internet Online Online Rush 0 10 20 30 40 Time 50 (Weeks) 60 70 80 90 100 Cuts here are detracting from the true goal 30© 2011 Ipsos
  29. 29. The #1 Problem Area for Innovation Research is…. The Concept 31© 2011 Ipsos
  30. 30. Recap of Today’s Key Points Recognize there are several paths leading to success  High purchase intent as the primary hurdle misses 3 out of the 4 winners  Be willing to nurture and iterate on the ideas that show potential, but aren’t ready to move ahead. Get real: Show the consumer what they’ll really experience  Integrate the user experience where needed  Steal a play from Apple: Show me, don’t tell me  Make sure the way you communicate the product simulates what you would do in market. Spend enough time getting your concepts right Your role: Help your company make the right investments! 32© 2011 Ipsos
  31. 31. A Voice for Innovation- www.innovationpov.com The latest in:  Innovation news  Thought leadership  Innovation strategy tips  Innovation marketing education  12,000 visits/month with 4,000 uniques! Follow us on Twitter @IpsosVantis  700+ followers, including 33© 2011 Ipsos
  32. 32. Vantis Concept Testing Offers Multi-Client Study Custom Study 34© 2011 Ipsos
  33. 33. Related Articles Innovation Misconception (articles 1 through 7) (2010)  Jason Brown  Ipsos Vantis  http://www.innovationpov.com/2010/10/11/innovations-common-misconceptions-1/ Taking product development lessons from a robot (2011)  Stephen Bohnet  Ipsos Vantis  http://www.innovationpov.com/2011/05/20/product-development-lessons-robot/ Why innovation funnels don’t work and why rockets do (2007)  David Nichols  The BrandGym  http://thebrandgym.com/downloads/bgym%20Market%20Leader%20Innovation%20 Rocket%20article%20-%20Sept%2007.pdf Using Research to Avoid the Pitfalls of Concept Development (2011)  Martha E. Guidry  The Rite Concept  Quirks: http://www.quirks.com/articles/2011/20110725-1.aspx 35© 2011 Ipsos
  34. 34. Stephen Bohnet, SVP & GM O. 925.327.2032 M. 925.325.5969stephen.bohnet@ipsos.com @IpsosVantis www.innovationpov.com

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